Bright Health Group has shed its telehealth business as it seeks to avoid bankruptcy.
Florence acquired telehealth provider Zipnosis from Bright Health for an undisclosed amount, the patient intake and tracking startup announced in a news release. Providers at more than 50 different health systems such as SSM Health have used Zipnosis to schedule 4.5 million virtual visits, according to the news release. 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 interview requests.
The health insurance company paid $51.4 million in cash and stock to acquire Zipnosis in 2021.
Zipnosis founders Ben Bowman and Jon Pearce sued Bright Health and its executives in Minnesota court last month, alleging Bright Health executives concealed information ahead of its $12 billion initial public offering, leading Bowman and Pearce to accept stock under the deal. Bright Health paid $33 million in stock for Zipnosis, according to the SEC filing. That case is ongoing.
The insurtech is reviewing bids for its California Medicare Advantage business. Bright Health must secure a buyer for its last insurance product by the end of the month to appease lenders after overdrawing its $350 million credit facility.
The company finalized a reverse stock split Monday to raise its share price above the $1 threshold to remain on the New York Stock Exchange. Bright Health stock opened at $14.01 on Wednesday, down from $14.39 at market close on Tuesday.