Financing to expand the health services company's leadership position as a Consumer-Owned Health program partner.
Minneapolis, MN - Dec. 19, 2007 – RedBrick Health, a health services company that is leading the transition from employer sponsored health care to Consumer-Owned Health, announced today the closing of a $15 million Series B preferred stock financing. The financing was led by Fidelity Ventures and included existing investors Highland Capital Partners and Versant Ventures. In connection with the financing, Dave Power, a partner at Fidelity Ventures, will join RedBrick Health’s board of directors.
Proceeds from this round of financing will be used to advance development and expand RedBrick Health’s leadership position in helping companies responsibly move to a defined contribution model for health care benefits, leading to long term cost reduction and increased employee engagement in their health. The company recently announced a number of new customers that have selected RedBrick Health as their Consumer-Owned Health program partner.
“Through its close relationship with Fidelity Investments, Fidelity Ventures understands the challenges that employers face in managing health care costs,” said Power. “As the U.S. health care market evolves to one in which employees take more responsibility for their health, RedBrick Health has positioned itself to become the market leader through an innovative offering designed to help employers better manage their health care costs and to empower employees to be more proactive about staying healthy.”
”The RedBrick Health team has executed exceptionally well, translating market opportunity into market adoption,” said Bob Higgins, managing general partner of Highland Capital Partners. “With an innovative approach to consumer owned health care solutions, RedBrick Health is strongly positioned for its next stage of growth.”
"Our team is thrilled to be working with Fidelity Ventures," said Kyle Rolfing, CEO of RedBrick Health. “Fidelity Investments is leading the transition in helping employees take greater responsibility in planning and saving for their retirement, much the same way RedBrick Health is leading the transition in helping consumers plan and own their health. We look forward to working with and leveraging the expertise of Fidelity Ventures and our strong syndicate of committed, active investors."
RedBrick Health serves employers and employees alike in the transition to Consumer-Owned Health by providing a defined contribution approach for employers and creating an equitable distribution of health benefits dollars between employees through an equal opportunity to realize health premium reductions for responsible health behavior. RedBrick Health then provides employees with the financial tools and incentives, customized personal wellness plans, and independent customer service advocacy to establish greater individual ownership and lifestyle change.