Even Healthcare Raises $50 Million to Scale Its Fixed-Salary Hospital Model
Even Healthcare has closed a $50 million all-equity Series B led by Khosla Ventures, valuing the Bengaluru-based company at $300 million. All-equity means the round was entirely shares, with no borrowed money. TechCrunch reported the round on Oct. 19, 2026.
The round brings Even's total funding to more than $120 million. The $300 million valuation is three times what it was 18 months ago. Khosla Ventures has backed the company since its seed round in 2021.
Even operates two hospitals in Bengaluru. Both covered their day-to-day operating costs, excluding depreciation, within a year of opening. Depreciation here means the accounting charge for the upfront cost of building and equipping clinical space, so the measure focuses on daily operations.
Even does not own its hospital buildings. It leases them on 20-year agreements. It plans to open five more hospitals in Bengaluru in the next six months, which would expand the local network from two to seven if completed on schedule.
Even pays doctors fixed salaries that are not tied to the number of tests or surgeries they order. Doctors can earn bonuses linked to patient-reported clinical outcomes. Every employee, including doctors and hospital staff, receives equity in the company.
Earlier reporting in July had expected Khosla to contribute $30 million of the $50 million round. Mint The October announcement confirms Khosla as lead, but did not disclose the final allocation.
The broader context here is hospital unit economics. Long-term leases turn a large upfront property cost into a steady operating expense, much like renting rather than buying a house. Fixed salaries break the direct link between clinical decisions and physician income. Giving equity to all staff extends that shared interest beyond clinicians. Together, the setup aims to limit unnecessary tests and procedures while helping retain staff.
Looking at execution, the test is whether the model replicates. Two hospitals reaching operating profit before depreciation within twelve months is one data point. Adding five more sites in six months in the same city will test whether site selection, staffing, lease terms and case mix, the blend of conditions treated, can scale together. Running multiple sites adds scheduling complexity, referral routing and purchasing overhead that single-site results do not show. Outcome-based bonuses will also need consistent measurement across sites to work as pay infrastructure rather than as an extra survey.
In my view, the structure is worth watching beyond this one round. Most hospitals still earn more when they do more. Even is trying to build operations where financial discipline, clinical autonomy and employee ownership pull in the same direction. If the next five hospitals match the first two on operating performance, operators and investors will have a template to study. If they do not, it will show which part of the model was specific to those first sites.
