Dive Brief:
- Online medical scheduling company Zocdoc has acquired Sohar Health, a startup that provides automatic insurance benefits eligibility checks.
- The deal, which closed Oct. 2, marks Zocdoc’s first acquisition since its founding in 2007 as the company looks to scale its tech infrastructure, according to a Wednesday announcement.
- The acquisition solidifies an existing partnership between the two companies, as Sohar’s platform has been integrated with Zocdoc since last year. Financial terms of the deal were not disclosed, and Zocdoc said there are no plans to reduce teams or eliminate roles.
Dive Insight:
Sohar will keep its name and products with no disruptions, and its technology will continue to be available to Zocdoc users, according to the announcement.
New York-based Sohar is a relative newcomer to the health tech space. The company, which was founded in 2023 by a physician and an engineer, raised $3.8 million last year in a seed funding round led by Kindred Capital.
Sohar’s platform can check insurance eligibility in real time, with 90% of verifications completed within 30 seconds, according to the company.
Patients looking to schedule a doctor’s appointment on Zocdoc can enter basic information like name and date of birth, and Sohar’s tech will verify insurance information and determine whether a provider is in-network.
The acquisition comes as New York-based Zocdoc doubles down on scaling its digital health footprint. Last month, the company launched an enterprise-level platform called Care Access Network that embeds Zocdoc’s clinician search and scheduling capabilities into third-party apps, insurer websites and AI tools.
As part of that launch, Zocdoc partnered with Amazon Health AI, Google Gemini, Yelp, Blue Shield of California, Healthgrades and others, meaning patients can use those platforms to search for care, backed by Zocdoc’s technology.
“As we build the healthcare access infrastructure that powers care everywhere patients search, we are investing deeply in making the experience of finding and booking care more seamless for more patients at scale,” Dr. Oliver Kharraz, founder and CEO of Zocdoc, said in a statement.
Zocdoc has had a tumultuous financial history, achieving unicorn status in 2015 before hitting major roadblocks soon after due to its unsustainable flat-rate subscription model. In 2018, the company pivoted to a subscription model that charges providers a per-patient fee for each booking and, five years later, Zocdoc reached sustained year-over-year profitability.
In May, Zocdoc reached a $2.3 billion valuation.
