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Avalon Healthcare Solutions (Avalon), a trusted partner for diagnostic intelligence across the payer ecosystem, announced a new majority investment from WindRose Health Investors, with continued support from existing investor Francisco Partners. The transaction strengthens Avalon’s foundation for future innovation and growth.
Avalon supports more than 90 million members and serves over 30 national, regional, and community health plans through its proprietary Diagnostic Insights Platform, which powers its Benefit Management and Analytics solutions. Avalon’s patented real-time automated policy enforcement engine (APEA) processes over 18 million claims per month, ensuring evidence-based, precise, and cost-effective diagnostic care.
Diagnostics inform 70% of medical decisions, making diagnostic data one of the most powerful — and historically underleveraged — assets in healthcare. Avalon has built the only technology platform solely dedicated to unlocking clinical and financial value from diagnostics at scale.
This new investment will allow Avalon to:
- Expand its Diagnostic Intelligence capabilities
- Accelerate improvements in predictive analytics and evidence-based policy automation
- Strengthen its Diagnostic Insights Platform
- Scale into new markets, including TPAs and Brokers serving self-funded employers starting in 2026
- Deliver even more quantifiable value to health plans, providers, and members
- Commitment to Clients, Partners, and Employees
There will be no changes to operations, service delivery, SLAs, client teams, pricing, or provider relations as a result of the transaction. Avalon’s mission — To be the driving force that unlocks the full potential of diagnostic science — empowering healthcare payers and providers with proven solutions that enable personalized care and enhance patient outcomes remains unchanged and is further strengthened by this investment.
“Avalon is entering an exciting new chapter,” said Bill Kerr, MD, 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.”
Avalon is the leader in diagnostic intelligence, helping health plans and providers unlock the full value of diagnostic science. The company simplify complex diagnostics, accelerate the adoption of proven innovations, and optimize diagnostic investments.
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