Knownwell Secures $25 Million to Expand Obesity Care Services

Knownwell, a primary care and metabolic health company, has successfully raised $25 million in funding, with the investment led by CVS Health Ventures. The announcement was made on March 4, 2024, during the HLTH conference held in Las Vegas. Knownwell specializes in providing metabolic health services, primary care, nutrition counseling, and behavioral health care, while also prescribing GLP-1 medications as appropriate.

The company operates on a national scale, offering virtual care and in-person services through clinics located in the Atlanta, Boston, Chicago, and Dallas areas. Knownwell accepts various insurance plans, including commercial, Medicare, and Medicaid. With this latest funding round, which also saw participation from MassMutual Catalyst Fund, Intermountain Ventures, a16z Bio + Health, and Flare Capital Partners, the total funds raised by the company now exceed $50 million.

Alyssa Reisner, partner and executive director at CVS Health Ventures, stated, “The ability to deliver comprehensive and longitudinal care at scale is exactly what payers and health systems need to address one of the most pressing drivers of high costs and poor outcomes in healthcare today.” She emphasized that this investment represents a transformative approach to obesity treatment in the United States.

With the new funding, Knownwell is set to enhance its services by expanding the number of clinics and growing its virtual care team. Brooke Boyarsky Pratt, co-founder and CEO of Knownwell, indicated that the company will also focus on investing in artificial intelligence and clinical decision support systems. Furthermore, Knownwell aims to strengthen its infrastructure around value-based care.

In an interview, Boyarsky Pratt noted, “We think that as prices come down and new, innovative programs are introduced, there will be opportunities to participate in different reimbursement models for all the great care we’re delivering today outside of a fee-for-service context.” She highlighted the importance of being prepared for these opportunities as they arise.

The funding acquisition comes at a critical time when some insurers, including Blue Cross Blue Shield of Massachusetts and Harvard Pilgrim Health Care, have begun to limit coverage for GLP-1 medications that aid in weight loss. Boyarsky Pratt expressed concern over the potential challenges this could create in the coming months, describing the situation as likely to be turbulent. Nonetheless, she remains optimistic about the future, stating, “We actually think the next 18 months will be the year of expansion.”

Looking ahead, Knownwell anticipates that the introduction of oral GLP-1 medications by pharmaceutical giants such as Lilly and Novo Nordisk will create more opportunities for patient access to innovative obesity treatments. Boyarsky Pratt believes that by 2027, the landscape of obesity medicine will be fundamentally different, with many patients gaining access to new options through their insurance plans.

In addition to expanding its care services, Knownwell plans to continue its advocacy efforts in the field of obesity medicine and to grow its involvement in clinical trials. Despite facing competition in the virtual obesity medicine market from companies like Ilant Health, Noom, and Found, Knownwell differentiates itself by adopting a primary care approach, aiming to provide holistic support to its patients.