Centivo acquires a primary care startup, despite others fleeing the space

In recent months, major companies like Walmart, Optum, and Walgreens have exited the primary and virtual care market. Contrarily, Centivo, a health plan provider for self-funded employers, is pursuing expansion through the acquisition of the virtual-first primary care startup Eden Health. The financial terms of the acquisition were not disclosed. Centivo, founded in 2017, aims to provide affordable healthcare by focusing on advanced primary care. CEO Ashok Subramanian emphasized that the current system for primary care payments is inefficient and costly, advocating for an integrated approach to primary and mental healthcare to remove barriers such as cost and accessibility.

With the acquisition of Eden Health, Centivo now serves over 160 employers, ranging from Fortune 100 companies to small businesses, and has expanded its reach into all 50 states. This enables Centivo to provide nationwide virtual primary care, along with additional services like mental health care, urgent care, and pop-up clinics. Eden Health’s technology, which integrates its clinicians’ EHR system with a proprietary member app, will enhance Centivo’s ability to offer coordinated, data-driven care.

Both companies share a common heritage as part of Grand Central Tech, a New York City-based startup residency. Subramanian noted that Centivo had a commercial partnership with Eden Health and valued their product and team so much that they offered Eden's solution to their own employees and families. This acquisition strengthens Centivo’s market-leading position as a health plan centered around advanced primary care, aligning with its mission to provide affordable healthcare solutions.