Workit Health, a leading national provider of virtual substance use disorder treatment based in Ann Arbor, today announced the closing of $118 million Series C funding round led by New York City-based private equity and venture capital firm Insight Partners.
Also participating in the investment were CVS Health Ventures, FirstMark Capital, BCBS Venture Fund, and 3L Capital. The investment follows a spike in telemedicine demand during the COVID-19 pandemic during which Workit’s membership increased 400 percent.
The funding will be used to accelerate the company’s growth in new markets, as well as expanding its primary and psychiatric care offerings, bringing effective care for substance use and co-occurring conditions to people from the privacy of their homes.
“Workit is at the forefront of massive acceleration in telemedicine adoption, which is key to solving the overdose crisis that was exacerbated by COVID-19. The risk factors associated with substance use have dramatically increased,” says Lisa McLaughlin, Workit Health’s co-CEO.
“This latest funding round helps us grow our relationship-based, telehealth-first, value-based approach into new regions that are in desperate need of simple and trusted solutions like Workit.”
Workit aims to improve outcomes for substance use disorder and co-occurring conditions, allowing people to receive evidence-based clinical care — including medication for substance use and mental health — via the Workit app.
The company offers licensed clinical support in 10 states: Alaska, California, Florida, Michigan, Minnesota, New Jersey, Ohio, Oregon, Washington, and Texas. In addition, Workit currently offers a coaching and counseling program nationwide.
Its clinical and counseling programs are currently covered by insurance for over 93 million people. This new investment will allow Workit to expand into new regions this year and next, with plans to be national by 2023.
“We’re establishing a new model for addiction care in America, and proud to be working with partners at the cutting edge of high growth in health care and technology,” says Robin McIntosh, co-CEO of Workit. “We lost a record-breaking 90,000 people to overdose deaths last year due to an outdated treatment system.
“Thousands of inpatient programs shuttered, leaving patients nationwide stranded and cut off from access to care. With Workit, starting on the journey to recovery is as simple as downloading an app. Our ultimate goal is to democratize access to addiction care for anyone who wants it.”
The company is harm-reduction oriented, prioritizing honesty and engagement over and “on the wagon, off the wagon” approach. This allows members to collaborate with licensed clinicians and counselors on their care goals.
The program includes telemedicine visits and medication e-prescribed to a local pharmacy, as well as online recovery groups, an interactive therapeutic curriculum, and direct messaging with a care team. In 2021, it expanded to include primary care for commonly occurring physical conditions like hepatitis C, PrEP, and psychiatric care.
“Insight’s investment in Workit Health speaks to their outcomes and impact—they’re leading the revolution to modernize addiction care,” says Nicole Shimer, vice president at Insight Partners. “We’re looking forward to supporting Workit’s long term vision to help more people across the United States break free of drug and alcohol addiction.”
As part of the round, Shimer will join Workit’s board of directors with Peter Segall, managing director at Insight Partners joining as a board observer.