(Reuters) - Carlyle Group Inc CG.O said on Wednesday that it led a group of investors making a $175 million investment in Grand Rounds Inc, a digital healthcare company.
The investment comes amid a surge in demand for telehealth services as coronavirus stay-at-home orders and social distancing guidelines forced doctors and patients to avoid in-person visits.
San Francisco-based Grand Rounds provides a digital platform that allows customers’ employees to access healthcare for complex or urgent care conditions from physicians around the country. Founded in 2011, Grand Rounds is used by more than 6 million workers at Walmart, Home Depot, Salesforce and other firms. The company has raised $270 million from investors since its inception.
“When someone needs care, they may just go to any doctor they know, which can be more expensive than necessary,” said Robert Schmidt, a Carlyle healthcare principal. “With Grand Rounds’ proprietary algorithms and database of high-quality physicians you can find the best doctor closest to you, which can lead to significantly better healthcare outcomes.”
Carlyle provided $160 million out of the total new financing, with Grand Rounds valued at $1.34 billion. Carlyle’s investment in Grand Rounds was made out of the $18.5 billion Carlyle Partners VII.
(The story corrects to Grand Rounds instead of Grand Rapids in the last paragraph)
Reporting by Chibuike Oguh in New York; Editing by Steve Orlofsky
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