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Bright Health Group has shed its telehealth business as it seeks to avoid bankruptcy.
Patient intake and tracking startup Florence acquired telehealth provider Zipnosis from Bright Health for an undisclosed amount in a cash transaction, Florence CEO Aniq Rahman said.
Providers at more than 50 different health systems, such as SSM Health, have used Zipnosis to schedule 4.5 million virtual visits, according to a news release. Florence launched last month with $20 million in seed funding led by Oscar Health co-founder Joshua Kushner’s Thrive Ventures, Google Ventures and Salesforce Ventures.
Florence will offer the Zipnosis platform to hospitals seeking virtual emergency department check-ins and care, Rahman said.
Bright Health officials declined to comment.The health insurance company paid $51.4 million in cash and stock to acquire Zipnosis in 2021, according to a Securities and Exchange Commission filing at the time. Last November, Bright Health reported paying $73 million for the telehealth provider.
Zipnosis founders Ben Bowman and Jon Pearce sued Bright Health and its executives in Minnesota court last month, alleging Bright Health executives concealed information ahead of its $12 billion initial public offering, leading Bowman and Pearce to accept stock under the deal.That case is ongoing.
The insurtech is reviewing bids for its California Medicare Advantage business. Bright Health must present a draft purchase agreement to at least one potential buyer for its last insurance product by the end of the month to appease lenders after overdrawing its $350 million credit facility.
The company finalized a reverse stock split Monday to raise its share price above the $1 threshold to remain on the New York Stock Exchange. Bright Health stock opened at $14.01 on Wednesday, down from $14.39 at market close on Tuesday.
Correction: An earlier version of this article mischaracterized the terms of Bright Health’s agreement with its lenders that the company sell its Medicare Advantage operations in California.