Glen Tullman, co-founder of Livongo, has launched a new startup called Transcarent that aims to use AI to help people navigate and pay for healthcare services. Tullman believes that text-based care will be the future of telehealth, with the majority of interactions moving to chat in the next few years. Transcarent recently announced a $126 million Series D funding round, valuing the company at $2.2 billion, and plans to offer a chatbot to help answer health insurance-related questions for consumers.
Transcarent offers an app with 24/7 chat-based primary care services, lower cost drug options, referrals, and second opinions. The company has raised $450 million in funding since its founding in 2020 and works directly with health systems to negotiate better rates for major healthcare events. While there is a growing market for healthcare navigation services, experts caution that Transcarent may only be a temporary solution to the broader issues within the U.S. healthcare system.
Tullman sees potential in using AI to cut costs for healthcare navigation services, which traditionally rely heavily on human call centers. He plans to offer these services at a lower cost than current options, leveraging AI technology built on OpenAI’s GPT-4 model. Transcarent is targeting employers with self-funded health insurance plans, aiming to help them lower their total healthcare costs by providing a streamlined healthcare navigation experience for employees.
Competing in the healthcare navigation market, Tullman faces challenges from both startups and established companies offering similar services. Transcarent’s new AI chatbot builds on technology acquired from a health AI startup in 2023, with the goal of providing accurate and helpful guidance to users seeking medical advice or information about their insurance coverage. While there may be concerns about competitors replicating the technology, Tullman believes that the cost of developing a similar AI tool will be a significant barrier.
Employee adoption of healthcare navigation solutions remains a key challenge for companies like Transcarent. While some large employers have already implemented these services, uptake among employees can vary. Transcarent customer Pilot Flying J has seen success with their employees using the Transcarent app, citing a combination of incentives and empowering employees to take control of their healthcare decisions. Tullman aims to create a seamless healthcare experience for patients, likening the vision for Transcarent to creating an “Amazon for healthcare.”
