Fabric Acquires MeMD, Expanding Virtual Care Services to 30,000 Employers and 5 Million Members

Rhea-AI Summary

Fabric, a prominent healthcare technology company, has acquired MeMD from Walmart (NYSE: WMT) to enhance its virtual care services. This acquisition covers MeMD's extensive network serving 30,000 employers and 5 million members, bolstering Fabric's offerings in behavioral and medical care. MeMD, founded in 2010 and previously acquired by Walmart in 2021, has been a leader in on-demand medical services, showing substantial growth under Walmart's ownership.

Fabric's AI-powered clinical intelligence and seamless automation will optimize MeMD's operations, reducing care costs for employers and employees. The integration will also ensure continuity of care with MeMD's healthcare team joining Fabric's network. Fabric's CEO, Aniq Rahman, highlighted the strategic vision to transform healthcare through this acquisition. The transition promises to maintain high-quality care and patient satisfaction while extending services to Sam's Club members.

Fabric's recent $60 million Series A funding underpins its rapid growth and expansion, partnering with leading health organizations and tripling annual sales. This move is set to drive innovation in virtual and in-person healthcare, ensuring accessible, high-quality care nationwide.

AI-powered clinical intelligence, seamless journey automation, and a robust network of behavioral health and medical providers position Fabric as the leading virtual care platform and clinical network for providers, payers, and employers

NEW YORK, June 28, 2024 /PRNewswire/ -- Fabric, a leading healthcare technology company and care enablement system, today announced the acquisition of MeMD from Walmart Inc (NYSE: WMT). MeMD is a leading provider of virtual behavioral, urgent, and primary care benefits for 30,000 corporate, institutional, and health plan partners and 5 million members. This acquisition advances Fabric's employer strategy and marks a significant milestone in the team's mission to power boundless, high-quality care for consumers across the nation.

MeMD, founded in 2010 and acquired by Walmart in 2021, has established itself as a trusted leader in virtual care, providing on-demand medical and behavioral health services to millions of members nationwide. The platform delivers high-quality care 24/7/365, and under Walmart's ownership, MeMD experienced significant growth and expansion.

This acquisition builds upon MeMD's previous technology partnership with Fabric to streamline patient intake and documentation.

Key Highlights of the Acquisition:

• Employer and Payer Expansion: The acquisition of MeMD expands Fabric's employer and payer solutions, advancing the company's behavioral health strategy.
• Streamlined Efficiency: MeMD customers will benefit from Fabric's industry-leading clinical intelligence and automation, which will further reduce the cost of care for employers and employees.
• Commitment to Quality Care: Fabric remains committed to delivering high-quality care and patient satisfaction. MeMD's experienced team of healthcare professionals will join Fabric's network, ensuring continuity of care and expertise.

"The MeMD team built a leading virtual care offering, and we are excited to welcome them to Fabric," said Aniq Rahman, founder and CEO of Fabric. "This acquisition aligns with our strategic vision to transform healthcare delivery through innovative technology and exceptional patient care. The combination of our teams, technology, and clinicians strategically positions Fabric to quickly expand across payers, employers, and provider organizations."

Fabric will ensure a smooth transition for MeMD's existing patients, partners, and clinicians as part of the acquisition. The combined strengths of both organizations will drive innovation and provide millions of patients with access to lower-cost, high-quality care. Fabric will also continue to serve Sam's Club members as a convenient, affordable telehealth solution.

Fabric recently closed a $60 million Series A — continuing to drive rapid growth through organic sales and strategic acquisitions, as demonstrated by:

• A growing enterprise customer base that includes Cleveland Clinic, OSF HealthCare, Highmark, Wellnow, MUSC Health, and Intermountain Health
• Triple-digit annual sales growth
• Team expansion from eight to over 200 employees in under two years
• Service line expansion across 75+ enterprise health organizations via Fabric's Engagement, Virtual Care, and In-Person Care Suites

Fabric's industry-leading care enablement system offers an AI-powered solution that triages and routes patients to the most appropriate point of care based on time of day, availability, distance, and disposition while streamlining treatment across virtual and in-person workflows. Fabric's technology will advance MeMD's efficiency, improving access to behavioral health and medical care nationwide while reducing the cost of care.

About Fabric:

Fabric is a health tech company that powers healthcare providers to move faster, work smarter, and deliver better care to patients, employees, and health plan members. Leveraging conversational AI and intelligent adaptive interviews, Fabric unifies virtual and in-person care across intake, triage, routing, and treatment while automating clinical workflows and consumer journeys. Customers include Luminis Health, OSF HealthCare, MUSC Health, Highmark, and Intermountain Health. Fabric is backed by General Catalyst, Thrive Capital, GV (Google Ventures), Salesforce Ventures, Vast Ventures, BoxGroup, and Atento Capital.

Media Contact:
Merrita Villa
VSC for Fabric
fabric@vsc.co

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SOURCE Fabric Labs Inc.

FAQ

What was the date of Fabric's acquisition of MeMD?

Fabric announced the acquisition of MeMD on June 28, 2024.

How will the acquisition of MeMD by Fabric affect employers?

The acquisition will enhance Fabric's employer and payer solutions, reducing care costs and maintaining high-quality care.

What was the impact of Walmart's ownership on MeMD?

Under Walmart's ownership since 2021, MeMD experienced significant growth and expansion in virtual care services.

How many members does MeMD serve?

MeMD serves 5 million members nationwide.

What strategic vision does Fabric's CEO have for the acquisition?

Fabric's CEO, Aniq Rahman, aims to transform healthcare delivery through innovative technology and exceptional patient care.

What companies and organizations are part of Fabric's enterprise customer base?

Fabric's enterprise customers include Cleveland Clinic, OSF HealthCare, Highmark, Wellnow, MUSC Health, and Intermountain Health.

What recent funding did Fabric acquire, and how has it impacted growth?

Fabric recently closed a $60 million Series A funding, driving rapid growth through organic sales and strategic acquisitions.

How will the integration of MeMD and Fabric benefit patients?

The integration will improve efficiency, access to behavioral and medical care, and reduce care costs while ensuring high-quality service.