Eleanor Health Announces $20 Million in Funding to Expand Services

Eleanor Health, a provider of outpatient mental health and addiction treatment services, this week announced that it has secured $20 million in Series B funding that will be put toward meeting increased demand from payers for population, value-based care for individuals with substance use disorder and mental health needs.

All of the company’s existing investors, including Town Hall Ventures, Echo Health Ventures and Mosaic Health Solutions, participated in the round of financing, as did a new investor for Eleanor Health—the private equity firm Warburg Pincus. In a news release announcing the round of financing, Adam Krainson, a principal at Warburg Pincus, noted Eleanor Health’s “tremendous commercial traction with value-based partnerships that pay based on outcomes and align financial risk for populations” as a differentiator that motivated the private equity firm to back the organization.

Eleanor Health projects that it will manage more than 50,000 members under its population-based partnership models by 2022. The company currently operates 18 clinics, as well as a virtual model, across Louisiana, Massachusetts, New Jersey, North Carolina, Ohio and Washington, delivering care through partnerships with Medicare, Medicaid and employers. Eleanor Health said in the release it is looking to “[go] deeper in existing markets by executing additional payer contracts to manage new populations and further [develop] its proprietary analytics and technology platform that will support identification, engagement and treatment” for those in need of care.