Ann Arbor’s Workit Health raises $118M in Series C funding round

Workit Health co-founders Robin McIntosh and Lisa McLaughlin. This is the first time the Ann Arbor-based company has been honored with a FastTrack Award. (Workit Health)

ANN ARBOR – Workit Health announced on Monday a $118 million investment round led by Insight Partners, with support from FirstMark Capital, CVS Health Ventures, BCBS Venture Fund and 3L Capital.

The leading provider of digital addiction care in the U.S., Workit Health has reported a 400% increase in membership since the COVID-19 pandemic began.

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According to a news release, the funding will be used to expand Workit Health’s psychiatric and primary care offerings, its growth into new markets and delivering effective addiction care to people from the privacy of their homes.

“Workit is at the forefront of massive acceleration in telemedicine adoption, which is key to solving the overdose crisis that was exacerbated by COVID-19. The risk factors associated with substance use have dramatically increased,” Lisa McLaughlin, Workit Health’s Co-CEO said in a statement. “This latest funding round helps us grow our relationship-based, telehealth-first, value-based approach into new regions that are in desperate need of simple and trusted solutions like Workit.”

“We’re establishing a new model for addiction care in America, and proud to be working with partners at the cutting edge of high growth in health care and technology,” Robin McIntosh, Workit Health’s Co-CEO said in a statement. “We lost a record-breaking 90,000 people to overdose deaths last year due to an outdated treatment system.

“Thousands of inpatient programs shuttered, leaving patients nationwide stranded and cut off from access to care. With Workit, starting on the journey to recovery is as simple as downloading an app. Our ultimate goal is to democratize access to addiction care for anyone who wants it.”

McLaughlin and McIntosh founded Workit Health in 2015 after experiencing ineffective treatment systems firsthand. Since then, the Workit app has made its mark, becoming the country’s most widely covered digital addiction treatment program.

According to a news release:

  • 84% of Workit members stay in the program longer than 30 days, compared to an industry average of 33% of patients staying in traditional treatment the first month. 41% of Workit members receive treatment for longer than one year.
  • Workit members report a reduction in addictive behavior, and also a decrease in anxiety and increase in healthy habits like exercise and controlled spending.
  • Workit Health app is the top-rated telemedicine addiction app on both iOS and Android, with over 600 reviews and an average 4.7 rating.

Currently, ten states use Workit’s licensed clinical support program for co-occurring conditions and substance use disorder, including Alaska, California, Florida, Michigan, Minnesota, New Jersey, Ohio, Oregon, Washington and Texas.

With the latest investment, Workit Health plans to expand and become national by 2023.

“Insight’s investment in Workit Health speaks to their outcomes and impact—they’re leading the revolution to modernize addiction care,” Nicole Shimer, vice president at Insight Partners said in a statement. “We’re looking forward to supporting Workit’s long term vision to help more people across the United States break free of drug and alcohol addiction.”

Shimer will join Workit Health’s Board of Directors and Managing Director at Insight, Peter Segall, will join as a Board Observer, as part of the latest round.

Workit Health takes a holistic approach to addiction care, prioritizing honesty and dialogue over an on again, off again approach.

The program offers telemedicine visits and e-prescriptions, an interactive therapeutic curriculum, online recovery groups and instant messaging with a care team.