Omada sets out to build '21st-century provider'

After raising $73 million in a recent investment round, Omada Health is focused on using digital health to build a "21st-century provider," according to CNBC.

With the funding round, Omada's valuation was around $600 million, two people familiar with the matter confirmed to CNBC.

Company CEO Sean Duffy wants to make digital health tools and services everyday needs. Omada offers its services to 550 companies, including Costco, Cigna and Lowe's as well as 35 health plans.

When Omada was created almost 10 years ago, the company was centered on helping patients with diabetes through digital health. After its success with diabetes prevention, Omada transitioned into hypertension, mental health and other chronic conditions to coach and monitor patients.

However, the company has faced a setback. CMS determined it would not pay for digitally administered diabetes prevention programs, such as Omada's, for Medicare patients. Omada has focused on working with private Medicare plans to get its services out there.

"I'm approaching this with a spirit of inclusion, as I think there's a growing reckoning that consumers want digital," Mr. Duffy told CNBC. "That's the reality that folks are up against. There may be an old model and old way of doing things that stick around for some time, but there will also be a new way and we want to be part of that."

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