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Valence Health Secures $30 Million from North Bridge

  Valence Health Secures $30 Million from North Bridge

    Adds Renowned Healthcare Executives as Investors and Board Members to
    Accelerate Company’s Growth in Patient-Centered Quality Care Solutions

Business Wire

CHICAGO -- June 19, 2012

Valence Health, a leading provider of clinical integration and health plan
services, announced today that it has secured a $30 million minority
investment from North Bridge Growth Equity, a leading venture capital growth
equity firm focused on investing in mid-stage, emerging and high-growth
technology companies. North Bridge Growth Equity is affiliated with North
Bridge Venture Partners. The funds will be used to accelerate the company’s
exceptional growth trajectory by adding seasoned healthcare talent; investing
in strategic sales and marketing initiatives; and expanding its integrated
suite of solutions aimed at improving healthcare and lowering costs through
clinical integration, quality management and risk assumption.

In addition to the financial investment, North Bridge has helped Valence
Health bring together some of the healthcare industry’s leading figures to
form its Board of Directors. Valence Health’s new Board includes:

  *Chris Kryder, M.D., non-executive Board Chair for Valence Health and
    founding CEO of D2Hawkeye (acquired by Verisk Analytics), co-founder of
    Generation Health (acquired by CVS/Caremark) and former Chief Medical
    Officer of Mariner Health
  *Bob Sheehy, former CEO of UnitedHealthCare
  *George Lynn, former Chair of the American Hospital Association (AHA) and
    former CEO of AtlantiCare
  *Phil Kamp, co-founder and CEO of Valence Health
  *Todd Stockard, co-founder and President of Valence Health
  *Bill Geary, Partner, North Bridge Venture Partners
  *Mike Pehl, Partner, North Bridge Growth Equity

Additionally, Roshen Menon, Principal, North Bridge Growth Equity, will join
the Board as an observer.

With the healthcare industry’s move to a collaborative care model, healthcare
providers are facing new regulations and increased financial pressures to
achieve efficient care delivery that is focused on the patient. Valence Health
offers tech-enabled, patient-centered solutions that combine data aggregation
and sophisticated data analytics with web-based reporting tools to give
providers the information they need to deliver collaborative care across the
care continuum to improve patient outcomes, while meeting the new standards
and regulations. It also arms providers with the ability to prove that new
metrics are truly being met in order to achieve optimal reward.

“Regulatory and economic incentives are forcing fundamental changes in how
patient care is being delivered. Valence Health has established itself as an
emerging leader in this fast-growing market,” said Bill Geary, Partner, North
Bridge Venture Partners. “The company has put together a proven solution that
brings together the tools, technology, and processes to assess opportunities,
measure outcomes and ensure appropriate payment for quality care across
various delivery settings within organizations. We are confident that we are
partnering with a great team in the competitive healthcare market and look
forward to helping Valence Health reach its full potential.”

For 15 years Valence Health has been leading the way in enabling healthcare
providers to optimize their systems to deliver quality care. The company’s
health plan services offering provides a full suite of medical, financial,
analytic, and call center services for the effective utilization of health
care dollars. Customers can choose a complete outsourced solution or opt to
outsource specific functions. Whichever option a customer chooses, Valence
Health’s seasoned, multi-disciplinary teams of medical, financial and
technical professionals will plan, implement and manage the solution that best
fits the customer’s needs. Today, Valence Health currently works with some of
the nation’s leading health organizations, including the Cleveland Clinic,
Texas Children’s Hospital, Driscoll Children’s Health Plan, OhioHealth Group,
St. Luke’s Episcopal Health System, Scott and White Health Plan, NorthShore
University Health System, Alliant Health Plan and Nationwide Children’s
Hospital.

“North Bridge’s investment goes far beyond the obvious financial benefits of
funding our ongoing product development and expanding sales and marketing,”
said Phil Kamp, CEO of Valence Health. “It enables us to bring together a
powerhouse Board of Directors whose collective experience and contacts
throughout the healthcare industry are unparalleled. We are excited to have
these high caliber healthcare executives help guide us in our mission to
provide best-in-class accountable care solutions that improve the efficiency
and accountability of healthcare providers resulting in better patient care
and lower costs.”

“The delivery of truly accountable care is now the holy grail for all
participants in the market,” said Chris Kryder, M.D. “Companies like Valence
Health are setting the pace in the development of the technology and services
needed to enable accountable care systems. I look forward to working closely
with the company in helping hospitals and physicians attain this objective.”

“Efficient care delivery must always place what is best for the patient at the
center and that is what Valence Health is enabling providers to accomplish
with its integrated suite of solutions and services,” said Bob Sheehy. “There
is a huge opportunity to bring everyone involved in patient care together
through solutions like those offered by Valence Health, which focus on the
patient, resulting in better care, lower costs and more satisfied caregivers.”

“I’ve worked with Phil Kamp and Todd Stockard since my days with AtlantiCare
and I can think of no other individuals who possess the leadership, depth of
experience and track record of success that they have in this field,” added
George Lynn, “Accountable care is an inevitable and welcome future for this
industry. Valence Health’s technology and services are, and will continue to
set the pace in ushering in a new standard of patient care and medical
accountability.”

About North Bridge:

North Bridge Growth Equity, a leading mid-stage venture capital equity firm
focused on emerging high-growth technology companies since 2007, is affiliated
with North Bridge Venture Partners, a leading early-stage and start-up
technology venture capital investor founded nearly twenty years ago in 1994.
With over $3 billion under management in seven venture capital funds and a
growth equity fund, North Bridge has invested in nearly 200 technology
companies across five diversified sectors including healthcare, software,
communications, materials and digital media, with offices in the Boston and
San Francisco areas. Selected healthcare investments since North Bridge’s
inception include eBenX, Phase Forward, Pharmetrics, Navinet, Aushon
Biosystems, Arsenal Medical, 480 Biomedical, Connance, Healthrageous,
Springleaf Therapeutics, SynapDx and Humedica. For more information about
North Bridge visit www.northbridge.com

About Valence Health:

Valence Health delivers patient-centered, data-driven solutions for quality
care and population management. Based in Chicago and recognized as a market
leader in the area of clinical integration and managing risk arrangements,
Valence Health offers unique solutions that combine data aggregation and
sophisticated data analytics with web-based reporting tools. We also have an
extensive history of managing risk, and can successfully position healthcare
provider organizations for future payment reforms such as bundled payments,
medical home models, and ACOs. For more information about Valence Health’s
capabilities and solutions, contact Lori Fox Ward, Senior Vice President at
(312) 277-6304. Visit Valence Health at www.valencehealth.com

Contact:

For North Bridge Growth Equity
Bill McLaughlin, 617-986-5753
northbridge@lpp.com
 
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