Tag: fabric

Fabric Leans In On Virtual Care With TeamHealth

Posted on by Jason Barry

Fabric is back at it again with another acquisition, this time scooping up the virtual care business of physician practice juggernaut TeamHealth.

Here’s the updated timeline leading up to Fabric’s fourth acquisition in 18 months:

  • March 2023 – Florence launches with $20M to tackle ER capacity constraints
  • May 2023 – Florence nabs Zipnosis from Bright Health 
  • Jan 2024 – Fabric rebranding and GYANT acquisition
  • Feb 2024 – Fabric closes $20M Series A led by General Catalyst
  • June 2024 – Fabric acquires MeMD from Walmart
  • Sept 2024 – Fabric picks up TeamHealth VirtualCare

That’s an unusually hot start for a startup still looking forward to its second birthday, but Fabric CEO Aniq Rahman walked Business Insider through the method behind the madness.

  • After bringing a consumer mobile experience to the ER, Fabric acquired Zipnosis to add asynchronous telehealth capabilities and accelerate its roadmap to new sites of care.
  • That apparently worked like a charm, so Fabric picked up GYANT’s conversational AI to serve as a patient entry point to its other offerings, then followed that up by grabbing MeMD and its 30k corporate/payor partners.

The latest move with TeamHealth VirtualCare officially gives Fabric access to over 100M lives in managed care contracts with payers, as well as a 50-state network of clinicians.

  • TeamHealth also broadened Fabric’s medical group with multi-specialty experience, including cardiology, sports medicine, OB/GYN, and family medicine.
  • On top of that, the health systems working with TeamHealth VirtualCare will transition to Fabric, providing plenty of surface area to start cross-promoting other services.

Put it all together, and Fabric’s strategy of acquiring both capabilities and customers has led to it having a rare amount of each for such a young company – not to mention an eight-figure ARR (reported during the GYANT acquisition) that’s probably well on its way to adding another digit.

The Takeaway

Fabric is leaning in on virtual care at a time when massive players are bowing out completely, creating an ecosystem of solutions that pushes the telehealth economics in a positive direction that’s hard to achieve with narrower strategies. That M&A playbook isn’t a secret, and given where we’re at in the investment cycle, Fabric probably has quite a few companies knocking on its door looking to be the next solution in its portfolio.

Fabric Acquires Conversational AI Startup Gyant

Posted on by Jason Barry

It was another action-packed week in what’s shaping up to be a busy 2024, with healthcare operations enabler Fabric acquiring conversational AI assistant Gyant.

If the name Fabric doesn’t ring a bell, that’s because the acquisition announcement was also the grand debut of Florence’s rebranding to the new moniker.

Florence – now Fabric – launched last March with $20M in seed funding to address what it views as the most significant constraint in care delivery: clinical capacity.

  • The first stop for Fabric, as with a growing number of patients, was the ED. Using Fabric’s mobile platform, patients in the ED can complete intake forms, update clinical information, initiate self-discharge, and schedule follow-ups.
  • The idea is that patients get real-time updates, providers get better ED throughput, and everyone goes home happy.

Fabric then went on to pick up Zipnosis off of Bright Health less than two months after closing its seed round, broadening its product suite with asynchronous telehealth and accelerating its roadmap to new sites of care – particularly the home.

  • The cherry on top of the acquisition was that Zipnosis also brought along 50+ health system customers, giving Fabric a foot in the door to start offering its other services.

Enter Gyant, which fits right into Fabric’s clinical capacity strategy by providing a conversational AI assistant that “empowers patients to self-navigate, connecting to them wherever they prefer to engage.”

  • Fabric had an existing integration with Gyant that allowed patients using the symptom checker within Gyant’s assistant to initiate telehealth visits powered by Fabric (courtesy of Zipnosis). 
  • Just to call a DFD a DFD, Gyant basically helps serve as Fabric’s digital front door.

Fabric’s “optimize capacity, streamline admin” value proposition is reaching provider ears at the right time. Since kicking off operations not too long ago, Fabric’s added 70 health systems to its client roster, and has apparently climbed from zero to eight-figures in ARR.

The Takeaway

Through its acquisition of Zipnosis last year, the company then known as Florence made it clear that it was looking to become an end-to-end healthcare operations enablement platform through any path necessary, including M&A. Now with the addition of Gyant, Fabric is walking the talk.

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