Knownwell Raises $25M to Enhance Obesity Treatment Services

Knownwell, a primary care and metabolic health company, has successfully secured $25 million in funding to enhance its obesity treatment services. The announcement was made on October 9, 2023, during the HLTH conference in Las Vegas. Leading this funding round was CVS Health Ventures, along with participation from notable investors such as MassMutual Catalyst Fund, Intermountain Ventures, a16z Bio + Health, and Flare Capital Partners.

Based in Boston, Knownwell provides a range of services including metabolic health, primary care, nutrition counseling, and behavioral health care. The company also prescribes GLP-1 medications when deemed appropriate. Their services are available through virtual care nationwide and in-person care at clinics located in the Atlanta, Boston, Chicago, and Dallas areas. Knownwell accepts various insurance plans, including commercial, Medicare, and Medicaid.

According to Alyssa Reisner, partner and executive director at CVS Health Ventures, Knownwell addresses a significant unmet need in healthcare. “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 stated. Reisner emphasized that this investment represents an opportunity to transform obesity treatment across the United States.

With the newly acquired funding, Knownwell plans to expand its operations by adding more clinics and enhancing its virtual care team. In an interview, Brooke Boyarsky Pratt, co-founder and CEO of Knownwell, stated that the company intends to invest in artificial intelligence and clinical decision support. Additionally, the company will focus on strengthening its infrastructure surrounding value-based care.

Boyarsky Pratt elaborated, “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 underscored the importance of ensuring that hiring and tools are in place to capitalize on these opportunities when they arise.

The funding arrives at a challenging time for the obesity treatment market, as some insurers, including Blue Cross Blue Shield of Massachusetts and Harvard Pilgrim Health Care, have begun to tighten coverage of GLP-1 medications for weight loss. Boyarsky Pratt anticipates a tumultuous six months ahead but remains optimistic about the long-term outlook. “We actually think the next 18 months will be the year of expansion,” she asserted. “We are really optimistic about pricing next year as both Lilly and Novo introduce oral GLP-1s.”

Looking ahead, Knownwell is committed to advocating for advancements in obesity medicine and expanding its involvement in clinical trials. The company operates in a competitive landscape that includes other providers of metabolic health support such as Ilant Health, Noom, and Found. However, Knownwell sets itself apart by adopting a primary care approach to obesity treatment.

As the healthcare landscape continues to evolve, Knownwell aims to be at the forefront of addressing the challenges posed by obesity, ensuring that patients receive comprehensive and effective treatment options.