Homeward secures $50 million in Series B funding and announces Priority Health partnership
Homeward, a rural healthcare-focused healthcare provider, announced a $50 million Series B funding round co-led by ARCH Venture Partners and Human Capital.
The company also announced its first value-based care partnership with Priority Health to provide care to Medicare Advantage members in rural Michigan. Homeward said it will use the new funds to accelerate expansion into new markets through value-based contracts with health plans.
The funding round also included participation from General Catalyst, who led Homeward’s Series A funding, and Lee Shapiro and Glen Tullman, co-founders of 7wireVentures, an early-stage healthcare venture capital fund. .
Homeward will also invest in expanding its on-site and virtual multidisciplinary care teams, including intensive care, as it expands to other states in the coming months.
WHY IS THIS PROBLEM?
According to the CEO, Dr. Jennifer Schneider.
“Despite the fact that nearly one-fifth of Americans live in rural communities, our current health care system is not fully equipped to support these people with stable access,” said Schneider. with high quality care”. “Our target market is tightly distributed among a handful of health plans. In fact, about 90% of Medicare-eligible beneficiaries living in rural markets are covered by seven payers. This funding allows us to reach rural people faster in partnership with health programs and local doctors. “
TREND TO BIGGER WOMAN
Homeward is an in-network provider implementing an integrated care model that includes technology and community-based, mobile care. In-home providers see members in mobile clinics across the community, virtually, and in members’ homes. These groups conduct physicals, perform diagnostic tests, and integrate with regional health systems, local doctors and specialists to coordinate care, refer members to direct services locally when needed.
The company supports eligible Medicare beneficiaries, including by partnering with Medicare Advantage plans, and bears the costs of caring for its members at its own risk.
Schneider and other veterans from chronic care management company Livongo launched Homeward in March with a $20 million investment from General Catalyst.
It soon partnered with Rite Aid to allow pharmacists to connect their Medicare-eligible customers with Homeward for care.
Americans living in rural communities are experiencing growing health disparities due to rural hospital closures and a rapidly growing shortage of doctors. In fact, Americans living in rural communities have a 23% higher mortality rate than those living in urban areas due to lack of care, according to Homeward.
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