Watershed Health

Watershed Health operates a care coordination network that links health plans, hospitals, physician practices, post-acute providers and community-based organizations around a single shared patient record. The platform connects to existing EMRs, health information exchanges and ADT feeds and extends those networks to providers they cannot otherwise reach, delivering alerts and care plans through the EHR, a web portal, or by phone and fax for providers without digital connectivity. The shared record carries clinical documents, current health status, social determinants of health such as food, housing and transportation needs, and contact information, so that care team members can communicate, execute a care plan and make decisions at the point of care.

The product is structured around three steps: connecting data so it reaches the whole care team, routing it into a workflow where the responsible party can act, and confirming closure of each step with time-stamped records visible to the care team and the funding organization. Watershed generates proprietary quality measures — including handoff duration, referral completion and HEDIS and STARS movement — that are visible to other providers and to payers, positioning coordination as something measured in real time rather than reconstructed from claims data. The solution is HITRUST-certified and addresses HIPAA compliance, data security and privacy requirements, and integrates with existing digital tools, HIEs and EHRs.

Founding story

Dr. Chip Grant, an interventional cardiologist, launched Watershed Health in 2013 to address uncoordinated care in the Alabama Gulf Coast region after observing missed connections and inefficiencies in his clinical practice.

Business model

Risk-bearing organizations — health plans, ACOs and state Medicaid programs — pay for the platform, while clinical and non-clinical providers join and use it at no cost and without a commitment or replacement of existing systems. Providers may use the tool for all of their patients, not only those attributed to the funding organization.

Software-as-a-Service subscription revenue from payers and other risk-bearing organizations; providers access the platform free of charge.

Traction

Customers include four of six major US health plans plus thousands of clinical and non-clinical providers delivering care to more than five million patients, including national health systems and post-acute organizations. The company reports 107 million minutes of coordination recorded on the platform in 2025, readmission reductions of 25%+ across multiple Medicare Advantage and SNP plans over multiple years, and an independent physician group moving from 2.5 to 5 STARS on ER follow-up without added staff. Infirmary Health reported approximately $5 million in first-year savings with payers, and Springhill Medical Center's CEO attributed halved hospital readmissions to the platform.

Latest developments

The company reports 107 million minutes of coordination recorded on the platform during 2025 and continues to offer free provider enrollment alongside payer-, ACO- and state-funded deployments.