Bright Health Group has abandoned its telehealth business as it seeks to avoid bankruptcy.
Florence has acquired telemedicine provider Zipnosis from Bright Health for an undisclosed amount, the patient admission and monitoring startup announced in a news release. According to the press release, providers at more than 50 different health systems like SSM Health have used Zipnosis to schedule 4.5 million virtual visits. 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.
Bright Health and Florence did not immediately respond to requests for interviews.
The health insurance company paid $51.4 million in cash and stock for acquire Zipnosis in 2021.
Zipnosis founders Ben Bowman and Jon Pearce sue Bright Health and its executives in a Minnesota court last month, accusing Bright Health executives of withholding information ahead of a $12 billion initial public offering, leaving Bowman and Pearce accepts stock by agreement. According to SEC filings, Bright Health paid $33 million in stock for Zipnosis. That case is happening.
Insurance technology is review bids for its California Medicare Advantage business. Bright Health must guarantee to the buyer Ultimate insurance product at the end of the month to appease lenders after overdrawing his $350 million line of credit.
The company has completed a reverse stock split Second to raise his stock price above the $1 threshold to stay on the New York Stock Exchange. Shares of Bright Health opened at $14.01 on Wednesday, down from $14.39 at Tuesday’s close.
