On Heels Of $130M Funding Round, Harbor Health Acquires 32 Clinics From VillageMD

Harbor Health is significantly expanding its presence across Texas with the acquisition of 32 clinics from VillageMD.

The deal extends Harbor Health’s footprint into three major new markets—San Antonio, El Paso, and Dallas—while also deepening its existing presence in its home base of Austin.

Although financial terms were not disclosed, the acquisition marks a major milestone for the rapidly growing company. With this move, Harbor Health has nearly quadrupled its clinical network—from 11 to 43 clinics—adding more than 80 clinicians, including physicians and advanced practice providers.

The expanded footprint aligns with Harbor Health’s strategy of building dense, regional networks to improve access, quality, and coordination of care.

“We believe in being dense where we are because there are huge advantages,” said Dr. Clay Johnston, Harbor Health co-founder, in an interview with Fierce Healthcare. “We don’t have to spend as much on marketing—people already know who we are. It also helps us form deeper relationships with specialists and hospital systems, making it easier to coordinate and deliver better care.”

Johnston added that Harbor Health and VillageMD share a strong cultural and clinical alignment, which helped make the transition seamless.

Expanded Reach and Vision

With its broader statewide presence, Harbor Health is now positioned to serve up to 14 million Texans—up from 1.6 million previously—according to co-founder and CEO Tony Miller.

Founded in 2022, Harbor Health launched with just three clinics in Central Texas. Since then, it has grown rapidly, providing care to over 50,000 people. In addition to its clinic network, the company operates two mobile clinics and an infusion center.

The clinic expansion follows a $130 million Series B funding round completed just two weeks earlier. The round was co-led by existing investors General Catalyst, 8VC, and Alta Partners, with DFO Management (Dell Family Office) increasing its support. Additional backers included Health2047, Capital Partners, Lemhi Ventures, Martin Ventures, Breyer Capital, and individual investors. Combined with a $95.5 million raise in January 2024, the company has secured $258 million in total funding to date.

Building the Next-Gen “Payvider”

Harbor Health was founded by Johnston, Eric Scott of 8VC, and Tony Miller—best known as the co-founder of Bind Benefits (now Surest, after its acquisition by UnitedHealth Group in 2021). From the outset, the team set out to build a vertically integrated “payvider”—a hybrid insurer and care delivery organization.

The goal: to provide proactive, tech-enabled care while offering health plans that are closely aligned with their clinical model.

“We’ve always intended to be an insurer plugged into a health system—the next generation of ‘payvider,’” said Johnston. “But we had to start with the clinics. No one wants to buy insurance tied to a network that doesn’t exist.”

With the new funding, Harbor Health plans to expand its insurance business, especially for large employer groups. Beginning in November 2025, the company will also offer fully insured individual and family plans on the HealthCare.gov marketplace.

Johnston emphasized the need for risk-based capital to support the insurance side of the business—and a sufficiently large clinical network to spread that risk and make the investment sustainable.

Specialty Care and Future Growth

Looking ahead, Harbor Health plans to integrate more specialty care services into its clinics, including rheumatology, dermatology, cardiology, endocrinology, and mental health.

“By integrating more specialty providers into our health teams, we’re surrounding each member with the expertise they need,” Johnston explained. “Our insurance plans and care model are designed to work together to achieve the best health outcomes.”

Each Harbor Health member is supported by a dedicated care team tailored to their individual health needs. These teams may include physicians, registered nurses, mental health professionals, and other specialists.

The company’s insurance offerings aim to deliver more coordinated and affordable care—at 10% to 20% lower cost compared to traditional plans—while improving the member experience.

“People want personalized care and clear guidance on lifestyle changes, treatments, and costs,” said CEO Tony Miller. “Employers need better ways to control rising healthcare costs. We believe we can offer plans that save money while delivering better care.”

For now, Harbor Health remains focused on deepening its presence across Texas, leveraging market density to drive down costs and improve care coordination.

Source: Fierce Healthcare