News Summary
Chicago-based health-tech company Tennr announces a decade-long lease on Madison Avenue, bolstered by a $101 million Series C funding round. Founded in 2021, Tennr focuses on transforming the patient referral system, addressing long-standing inefficiencies that lead to missed specialty care appointments. With a valuation nearing $605 million, Tennr aims to enhance healthcare workflows and streamline referral processes using advanced technology, positioning itself as a leader in the growing health-tech market.
New York – Chicago-based health-tech company Tennr is set to enhance its footprint on Madison Avenue in New York with a significant decade-long lease agreement. This expansion follows the recent successful closure of a $101 million Series C funding round, marking a decisive moment in the company’s growth trajectory.
Founded in 2021 by Diego Baugh, Trey Holterman, and Tyler Johnson, Tennr aims to revolutionize the patient referral system, which has long been plagued by inefficiencies. Over half of the individuals referred for specialty care in the United States fail to attend their appointments, a statistic that highlights the pressing need for improvements in the healthcare referral process.
Tennr’s co-founder, Diego Baugh, was inspired to create the company after facing delays in obtaining specialist care during his college years, leading him to recognize the critical flaws in the existing system. The company proposes a solution through its proprietary technology designed to streamline patient referrals by scrutinizing medical documentation and physicians’ notes.
The recent funding round was led by prominent venture capital firm IVP, accompanied by investments from Google Ventures, Iconiq, and existing backers such as Andreessen Horowitz and Lightspeed. This funding effort has pushed Tennr’s valuation to approximately $605 million, placing it among the fastest-growing health-tech startups, especially in a market increasingly influenced by artificial intelligence advancements.
According to CEO Trey Holterman, the company focuses on resolving inherent issues within the healthcare system rather than merely branding itself as an AI provider. Holterman’s background as a software engineer in Medicare platforms and fitness technology informs Tennr’s mission to automate and clarify the intricate referral paperwork that often complicates patient eligibility, benefits verification, and payer regulations.
Tennr’s AI model has undergone extensive training, utilizing tens of millions of medical documents specifically pertaining to patient referrals. This targeted approach demonstrates Tennr’s commitment to providing specialized solutions rather than a generalized AI application.
IVP partner Zeya Yang noted that Tennr has carved out a strategic niche that paves the way for significant growth opportunities, particularly within specialist services and the overall referral workflow. The company has plans for potential expansion into new medical specialties and developing innovative insurance verification tools that streamline the referral process.
A key objective for Tennr is to improve visibility for both primary care providers and patients just as much as it aims to enhance the patient experience within the referral and payment processes. With these developments, Holterman estimates Tennr’s revenues are now in the eight-figure range, having tripled since the completion of its Series B funding round last October.
Ultimately, Tennr emphasizes its commitment to patient service and understanding costs to ensure individuals receive the necessary care they seek. The company’s advancements and strategic location in New York may prove to be vital in its ongoing mission to reshape healthcare referral protocols and improve patient outcomes across the nation.
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