$3M in Seed Funding and Proven Pilots Accelerate Path to Maximizing Essential Revenue for Healthcare Providers Serving Communities in Need
Proximity, the intelligent automation platform maximizing 340B drug discount revenue for qualified healthcare providers, launched today with $3 million in funding to help uncover and secure revenue critical to operating budgets. Proximity’s Seed round was led by LRVHealth with participation from Commonweal Ventures and will accelerate development of its technology that has already been proven with pilot customers to improve 340B program values by an average of 20%.
Healthcare providers purchased a record $66 billion in drugs through the federal 340B drug pricing program in 2023. The program allows providers serving low-income and vulnerable patients to buy prescription drugs at discounted rates directly from manufacturers while being reimbursed for the full cost of the medication. For providers already operating on historically tight margins, the savings they earn from this program is a critical component of maintaining patient services.
However, managing a 340B program is complex and time consuming given the requirement to maintain compliance. Participating providers struggle to verify patient eligibility, implement robust mechanisms to prevent duplicate discounts, monitor dispensing with contract pharmacies, manage and stay prepared for audits, navigate state and federal requirements, as well as much more.
“Our mission is to help keep healthcare in reach of all who need it. Without 340B revenue, healthcare providers that are essential to their communities would have to severely cut services – or in some cases, even close their doors. We founded Proximity to make sure that doesn’t happen,” said Scott Johnsen, founder and CEO of Proximity. “Our platform centralizes 340B program management, empowering providers to seamlessly manage claims, address noncompliance, and recover revenue across their TPA networks. By eliminating complexity, we streamline program administration across pharmacy, finance, and compliance functions, fostering closer collaboration among teams responsible for these outcomes. There’s no reason providers serving the most vulnerable people in our communities shouldn’t have access to the type of modern technology their counterparts across the healthcare ecosystem have – especially when it more than pays for itself by orders of magnitude.”
Proximity connects and combines the entire ecosystem of 340B data across wholesalers, third-party administrators, and EHR systems to create a central hub of easy-to-understand data that generates new types of insights. By performing complex data transformations and exposing the outputs to a sophisticated rules engine that is continuously re-assessing every aspect of a 340B program, the platform finds and automates the recovery of all missed revenue while facilitating program compliance and mitigating the risk of errors and duplication.
For SIHF Healthcare, a system of federally qualified health centers (FQHCs) serving Southern Illinois with multiple locations, Proximity helped recover more than $2 million in the first 11 months, resulting in a nearly 15% increase in revenue from its 340B program.
“SIHF was built on the belief that everyone should have access to quality care, and our mission is to deliver accessible and integrated care regardless of a person’s ability to pay,” said Sherria Morris, Director of Pharmacy Programs at SIHF. “We rely heavily on 340B revenue to deliver a standard of care our communities deserve. Proximity takes away an enormous portion of the administrative burden of running our 340B program, while giving us assurance that we’re not missing any of the savings we are entitled to. It quickly began playing a critical role in our operations.”
Proximity can help streamline operations and recover revenue for all covered entities under the 340B program – including Federally Qualified Health Centers (FQHC), Critical Access Hospitals (CAH), Disproportionate Share Hospitals (DSH), children’s hospitals, and other safety-net providers. It helps these organizations overcome increasing program complexity, price restrictions, and opaque program data so they can depend on 340B as a predictable revenue line.
“We've spent considerable time exploring the 340B market given the important role that the program plays for many of our health system partners and the gaps that exist in critical enabling capabilities,” said Josh Flum, managing partner at LRVHealth. “With their combination of deep domain expertise and product development experience, Scott and team are building a unique technology-driven solution for 340B program optimization, reporting, compliance, and discount tracking—key capabilities gapped in the market today. The real-time, comprehensive view of the program that Proximity provides will become increasingly critical as 340B regulations and compliance requirements grow more complex.”
As a result of the funding, Josh Flum has joined Proximity’s board of directors.
Proximity will be demonstrating its platform at booth 112 at the 340B Coalition Winter Conference, February 24-26, 2025 in San Diego, California. To learn more, or to get a no-obligation assessment of your data and learn exactly how much value your 340B program should be creating, visit https://www.proximityhealth.com/#CTA
About Proximity
Proximity maximizes revenue healthcare providers earn from the federal 340B Drug Pricing Program, while minimizing the time and resources they dedicate to manage it. With modern technology that centralizes data from electronic health records (EHRs), third-party administrators (TPAs) and wholesales into a single intelligent platform, Proximity safeguards against manufacturer threats and compliance concerns, while uncovering significant, often overlooked 340B revenue — in days, not weeks. For more information, visit https://www.proximityhealth.com
View source version on businesswire.com: https://www.businesswire.com/news/home/20250220859933/en/
Contacts
Media:
Mike Reilly
Marketbridge for Proximity
LRVHealth@marketbridge.com
