Dive Brief:
- Health technology startup Florence announced Wednesday it had acquired telehealth company Zipnosis from insurtech Bright Health.
- Minneapolis-based Bright has been shedding parts of its business as it struggles financially, recently announcing that it was looking to sell its California Medicare Advantage plans. That would fully remove the company from the insurance business to focus on its consumer care products.
- Initially working on technology to increase clinical capacity in emergency departments, Florence launched last month with $20 million in seed funding.
Dive Insight:
Earlier this week, Bright completed a reverse stock split, allowing it to keep trading on the New York Stock Exchange. The insurtech, which went public in 2021, had received notice late last year that it was in danger of being delisted because its average closing price was less than $1 a share for more than 30 consecutive days.
The company has lately been cutting its insurance products, last year exiting the ACA exchanges and then leaving states where it offered MA plans.
In March, Bright revealed it had spent the $350 million available in its credit facility, forcing it to search for more cash to fund its operations. According to a filing with the Securities and Exchange Commission, Bright received an extension to its credit facility through June 30.
The insurtech bought Zipnosis for an undisclosed sum in 2021. Bright declined to comment on the sale.
Florence, which is backed by Thrive Capital, GV and Salesforce Ventures, provides technology that aims to improve clinical capacity, like digital intake and discharge forms, scheduling and visit progress information for patients.
“Zipnosis’ asynchronous telemedicine solution is the best in the industry and perfectly aligns with Florence’s vision to create capacity to care in physical settings,” Florence CEO Aniq Rahman said in a statement.
