Garner Health has built a “network-within-a-network” that rewards employees for choosing doctors with better outcomes and lower costs. Founder and CEO Nick Reber came to the idea after a misdiagnosis led to multiple back surgeries, then later saw firsthand at Oscar Health how hard it is to improve outcomes when networks are shaped by hospital economics rather than performance data. Garner, founded in 2019, uses deidentified claims data from roughly 320 million records to identify physicians with strong outcomes and lower overall costs. For employer clients that pay a per-employee monthly fee, Garner creates a network-within-a-network and reimburses employees’ out-of-pocket costs when they choose one of its recommended doctors.
The pitch is landing as employer-sponsored health coverage keeps getting more expensive and finance leaders look for savings that don’t spark employee backlash. Garner says its recommended physicians have markedly lower complication and hospitalization rates and that customers see an average 12% reduction in total healthcare spend. The company reports more than 700 customers—including Clayton Homes, Mohawk Industries, and Mercy—and says it covers over 2.5 million members.
That traction helped it raise $118 million in a round led by Kleiner Perkins at a $1.35 billion valuation, with Redpoint, Maverick Ventures, and Kaiser Permanente Ventures also investing, bringing total venture funding to about $200 million. Garner also expects annual recurring revenue to surpass $200 million in the next year, and points to employer results like Kenco, which says about 70% of eligible employees are choosing Garner’s top doctors and the return has been just over 13% even after reimbursements.
