Wayspring Raises $75M for Value-Based Substance Use Disorder Treatment

axialHealthcare — a Nashville, Tennessee-based substance use disorder (SUD) treatment company — has received a $75 million investment, along with rebranding itself to Wayspring.

Founded in 2012, Wayspring is a value-based care solutions company that links prospective patients to providers of treatment services. Patients and providers are connected through a network of SUD treatment organizations, with services including behavioral health, community-based peer support and primary care offered.

“We are extremely excited to announce this important investment by some of the leading investors in healthcare,” Wayspring CEO Carter Paine said in a press release.

Wayspring said that it will use the funding raised to scale its value-based care solution, which is a full-risk medical home model for treating substance use disorder (SUD) . The company is a part of a growing number of SUD treatment businesses that have embraced value-based care payment models, joining companies like provider Eleanor Health and managed care organization AmeriHealth Caritas in a gradual industry move away from traditional fee-based services.

Valtruis lead the fundraising round and was joined by Centene Corporation, CareSource, HLM Venture Partners. Existing investors that also contributed were Highmark Ventures, .406 Ventures, the Blue Venture Fund and Oak HC/FT.

“The team at Valtruis has a strong track record of investing in and scaling transformational healthcare companies,” Paine added. “Together, we are building an innovative solution that holistically addresses the complex and heartbreaking challenges that individuals with SUD and their families face daily.”

Valtrius is a value-based portfolio company of New York-based private equity firm Welsh, Carson, Anderson & Stowe (WCAS).

“We are thrilled to back the Wayspring team to help solve the enormous issues confronting the SUD community,” Karey Witty, a managing director with Valtruis and an operating partner at WCAS, said in the press release. “This investment marks the second time that Carter and I have partnered with Welsh Carson to build a value-based care platform to tackle a pervasive and growing healthcare issue, in this case substance use disorder.”