Avalon Healthcare Solutions has secured a new majority investment from WindRose Health Investors, with existing investor Francisco Partners continuing its backing, in a move aimed at accelerating the company’s growth and innovation in diagnostic intelligence.
The transaction strengthens Avalon’s capital base as it expands its technology-driven approach to improving the clinical and financial value of diagnostics across the healthcare system. Financial terms of the deal were not disclosed.
Based in the US, Avalon works with more than 30 national, regional and community health plans, supporting over 90 million members through its proprietary Diagnostic Insights Platform. The platform underpins Avalon's benefit management and analytics offerings and includes a patented real-time automated policy enforcement engine that processes more than 18 million diagnostic claims each month, enabling evidence-based and cost-efficient testing decisions.
Diagnostics play a role in an estimated 70 per cent of medical decisions, yet diagnostic data has historically been underutilised. Avalon positions itself as a dedicated diagnostic intelligence platform focused on translating this data into actionable clinical and financial insights at scale.
The fresh investment is expected to help Avalon expand its diagnostic intelligence capabilities, accelerate advancements in predictive analytics and automated evidence-based policies, and further strengthen its core technology platform. The company also plans to broaden its market reach, including expansion into third-party administrators and brokers serving self-funded employers beginning in 2026.
Avalon highlighted that the investment will not result in any changes to its day-to-day operations, client services, service-level agreements, pricing, or provider relationships. Its strategic focus remains on enabling personalised care, improving outcomes, and reducing unnecessary diagnostic spending for payers and providers.
With the continued support of its investors, Avalon aims to deepen its role in value-based care by scaling solutions that improve decision-making across the diagnostic test-to-treatment pathway.
