If you have insurance, you are most likely reliant on in-network providers as they provide the best coverage benefit for your plan with the least out-of-pocket expense. These provider networks are essentially a catalog of thousands of doctors, other health care providers, and health care institutions that your insurer contracts with to provide in-network coverage for members. But how are these networks established and maintained? Traditionally, the process has largely been manual. J2 Health is a healthcare SaaS platform that’s on a mission to change that through data and optimization. Founded by an ex-Oscar Health executive, the company focuses on building/designing provider networks and optimizing them for insurers through technology so that they are able to serve the needs of members by delivering affordable, quality, and relevant healthcare options.
AlleyWatch caught up with J2 Health CEO and Founder Josh Poretz to learn more about the inspiration for the business, the company’s strategic plans, recent round of funding, and much, much more…
Who were your investors and how much did you raise?
We raised a $4.5 million Seed investment round, led by New York-based venture capital firms Primary Venture Partners, Tiger Global, and BoxGroup to help healthcare organizations optimize provider network performance.
Tell us about the product or service that J2 Health offers.
J2 Health brings together best-in-class data and purpose-built software to enable healthcare organizations to optimize provider network performance, driving greater healthcare value for all.
What inspired the start of J2 Health?
I built over 30 provider networks at Oscar Health, and saw how healthcare organizations struggle to assess provider network performance and drive needed improvements. Are our networks meeting members’ needs? Are they providing high-value, affordable care? Unreliable data and disjointed, manual processes stood in the way of optimal outcomes.
How is J2 Health different?
J2 is laser-focused on network design and performance, and provides the technology needed to enable optimal networks. Without a cohesive technology stack, healthcare organizations are helpless to make networks better.
What market does J2 Health target and how big is it?
J2 Health targets healthcare organizations that are focused on building provider networks.
What’s your business model?
J2 provides subscription software services.
What are your post-COVID office plans??
J2 is beginning its search for office space in Brooklyn.
What was the funding process like?
It was a whirlwind but we ended up with the right partners and the right deal to build our business.
What are the biggest challenges that you faced while raising capital?
Translating the importance and challenges of our domain – provider network management – to investors.
What factors about your business led your investors to write the check?
Our investors saw the clear market need J2 was looking to address and the opportunity to drive higher value healthcare. They believed in our mission and that we were the team to go out and execute.
Our investors saw the clear market need J2 was looking to address and the opportunity to drive higher value healthcare. They believed in our mission and that we were the team to go out and execute.
What are the milestones you plan to achieve in the next six months?
We plan to continue to scale the team and product, and deliver unique value to our clients.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Be honest with yourself – would you invest in the business and story you are telling? If you wouldn’t, what do you need to accomplish or demonstrate to get there? If you would, then hustle to get in the room – investors will see what you see.
Where do you see the company going now over the near term?
Establishing itself as the premier network design and management offering in the market.
What’s your favorite outdoor dining restaurant in NYC?
Bahn Shop House on 107th & Amsterdam. I’ve never left unhappy.
