Avalon Healthcare Solutions, a leading provider of Diagnostic Intelligence for the payer ecosystem, has secured a new majority investment from WindRose Health Investors, with continued backing from existing investor Francisco Partners. 

 

The deal reinforces Avalon's position for accelerated innovation and long-term growth.

 

Avalon currently supports more than 90 million members and partners with over 30 national, regional, and community health plans. Its proprietary Diagnostic Insights Platform underpins Benefit Management and Analytics solutions, while its patented real-time Automated Policy Enforcement Engine (APEA) processes more than 18 million claims each month to deliver evidence-based, precise, and cost-effective diagnostic care.

 

Diagnostics influence roughly 70% of medical decisions, yet diagnostic data has long remained an underutilized asset in healthcare. Avalon has built the only technology platform dedicated exclusively to unlocking both clinical and financial value from diagnostics at scale.

 

The new investment will fuel expansion of Avalon's Diagnostic Intelligence capabilities, accelerate advances in predictive analytics and automated evidence-based policy enforcement, and further strengthen the Diagnostic Insights Platform. 

 

Avalon also plans to scale into new markets, including TPAs and brokers serving self-funded employers beginning in 2026, while delivering increased measurable value to health plans, providers, and members.

 

Avalon emphasized that the transaction will not impact operations, service delivery, SLAs, client teams, pricing, or provider relationships. The company’s mission—to unlock the full potential of diagnostic science and empower payers and providers with solutions that enable personalized care and improved patient outcomes—remains unchanged.

 

"Avalon is entering an exciting new chapter," said Bill Kerr, CEO of Avalon. "This investment amplifies the momentum we've built and enables us to accelerate the innovation our clients count on — from diagnostic policy automation to advanced analytics that transform outcomes across the entire test-to-treatment journey."

 

David Pontius, Partner at WindRose Health Investors, commented: "Avalon stands at the heart of the diagnostics transformation. Their platform, clinical scientific rigor, and measurable impact make them uniquely positioned to deliver value across the healthcare ecosystem. We are thrilled to support Avalon in its next phase of scale."

 

Ezra Pearlman, Partner at Francisco Partners, stated: "Our reinvestment reflects our strong conviction in Avalon's mission, leadership, and performance. Avalon has demonstrated that diagnostic intelligence is essential to driving value-based care, and we look forward to supporting the journey ahead."