Carefi Capital, Inc. is a public benefit corporation established in 2023, headquartered in Greensboro, North Carolina. The company specializes in providing capital and capacity solutions to healthcare providers, including hospitals, physician groups, and accountable care organizations (ACOs), to facilitate their transition to value-based care models. Carefi's mission is to be the leading investment platform and marketplace for value-based care outcomes, aiming to increase capital flows to outcomes-based health initiatives that scale service provider capacity.
Key Strategic Focus
Carefi focuses on developing value-based care outcomes as an asset class, addressing funding gaps that impede healthcare's shift from volume to value-based payment models. The company offers alternative risk finance products, underwriting performance surety and warranty policies on value-based care contracts. This approach enables healthcare providers to better manage the transition to performance-based reimbursement models by providing the necessary capital and capacity to achieve performance incentives and shared savings.
Financials and Funding
Since its inception, Carefi has secured multiple funding rounds to support its growth and operations. In January 2024, the company completed a seed funding round, raising $1 million. Earlier, in June 2019, Carefi raised $1 million in an early-stage venture capital round. Notable investors include Preferred Medical Marketing, RevTech Labs Capital, CFV Ventures, Stacked Capital, and Switchpoint Ventures.
Technological Platform and Innovation
Carefi's platform originates and services performance interest financing of value-based care contracts, providing a transparent, two-sided market for pricing these assets and offering financial delivery risk hedging opportunities for providers and other healthcare market participants. The company's unique blend of performance and alternative risk finance products, underwriting, and analytic capabilities supports value-based payment models, enabling providers to expand their value-based contracting footprint across primary and specialty care.
Leadership Team
- Nathan Powell: Co-Founder, Chief Executive Officer, and Board Member.
- Chris Langley: Co-Founder, Chief Operating Officer, and Managing Director.
- Alexander Reyngold: Chief Risk Officer.
These leaders bring extensive experience in healthcare finance and risk management, guiding Carefi's strategic direction and operations.
Competitor Profile
Carefi operates in the niche sector of healthcare-focused financial services, with limited direct competitors. One notable competitor is Finacity, a company specializing in receivables securitization and working capital solutions. While Finacity offers financial services across various industries, Carefi's exclusive focus on value-based care financing distinguishes it within the healthcare sector.
Strategic Collaborations and Partnerships
Carefi collaborates with strategic partners to provide mission-driven investable assets, connecting outcomes and performance-based healthcare organizations to capital markets. These partnerships aim to generate both financial and impact returns, aligning with Carefi's mission to enhance capital flows to value-based health initiatives.
Operational Insights
Carefi's strategic positioning in the value-based care financing market leverages its proprietary platform and expertise in alternative risk finance. By addressing the capital and capacity needs of healthcare providers transitioning to performance-based reimbursement models, Carefi differentiates itself from competitors and strengthens its market position.
Strategic Opportunities and Future Directions
Looking ahead, Carefi aims to expand its platform's reach and capabilities, further solidifying its role as a leading investment platform for value-based care outcomes. The company plans to enhance its technological infrastructure, develop new financial products tailored to the evolving needs of healthcare providers, and establish additional strategic partnerships to drive growth and innovation in the value-based care financing sector.
