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The equity round of $259 million was led by Optum Ventures, with participation from new investors Adams Street Partners, Blue Shield of California, among others, and continued support from existing investors Humana, Echo Health Ventures, Questa Capital and Oak HC/FT. K2 HealthVentures, Silicon Valley Bank and SVB Capital provided debt financing of $75 million, with up to an additional $75 million available for growth initiatives, bringing the total raised to more than $400 million.
Some of these investors, such as Humana, have pitched into the national effort to beat the worldwide pandemic, together with the two biggest health-insurers in Illinois, Blue Cross and Blue Shield of Illinois and UnitedHealthcare, which cover more than 10 million members in the state, by waiving member co-payments for COVID-19 treatment.
In the United States, $4 trillion is spent on healthcare annually and it is projected to exceed $6 trillion by 2028. With more than a third of this spend on care delivered in traditional brick-and-mortar facilities, the healthcare industry has reached a watershed moment.
Healthcare technology has reshaped our lives for the better. The rate of innovation is accelerating, resulting in longer lives and also higher costs of care. Today, we cure incurable diseases, extend life where near-term death was previously certain, and know which medication will or will not be effective based on a person’s genetic code. We can even predict who will get sick and what care they will need to avoid illness altogether.
DispatchHealth’s in-home, high acuity care model aligns health plans, health systems, at-risk provider groups and patients with complex care needs by delivering a value-based alternative to high-cost settings such as the emergency room, hospital ward or skilled nursing facility, reducing medical costs while improving clinical outcomes and patient and provider satisfaction.
To coordinate the complex ecosystem of in-home care, DispatchHealth has created an operating system for high acuity care in the home. The proprietary technology platform uses real-time data insights to manage all aspects of the in-home care experience, including logistics, onboarding, risk stratification, care coordination and analytics that elevate the clinical practice and drive improved outcomes.
“For the past seven years, we have been building a comprehensive ecosystem of high acuity care in the home,” said Dr. Mark Prather, Co-Founder and CEO of DispatchHealth. “Our proven approach to delivering healthcare to complex patients in their homes will continue to transform healthcare. This round of funding is a testament to what we and our passionate team members have created at DispatchHealth and the belief our partners have in our leading-edge care model.”
Today, DispatchHealth provides high acuity care to complex patients across 34 states and has developed innovative relationships with health plans, provider groups, health systems, employers, senior living facilities, and home health organizations to deliver a better, more coordinated healthcare experience. DispatchHealth is also one of the largest and most experienced providers of Advanced Care, a hospital alternative, and Extended Care, a skilled nursing facility alternative.
DispatchHealth will use the financing to:
The main investors are particularly confident their funds will go towards expansion, making sure better care is available for more patients.
“DispatchHealth is transforming the healthcare industry by improving access to outcomes-driven, high-quality, in-home care and delivering on the enhanced experience patients deserve. Optum Ventures is honored to deepen our relationship with DispatchHealth and its experienced leadership team as they continue to expand their reach of high acuity, in-home care to serve patients with complex care needs across the nation,” said Laura Veroneau, Managing Partner at Optum Ventures.
“DispatchHealth’s comprehensive and unique ecosystem of in-home care is compelling. Adams Street is thrilled to support DispatchHealth as they expand their system of care, particularly their high acuity hospitalization substitution model. We believe DispatchHealth is positioned to catalyze important and necessary advances in the healthcare industry,” said Tom Bremner, a Partner at Adams Street Partners.
DispatchHealth brings the power of the hospital to the comfort of the home. DispatchHealth is building the leading in-home system of care and offers on-demand acute care and an advanced level of medical care for people of all ages in the comfort of their own homes. DispatchHealth’s emergency medicine and internal medicine trained medical teams are equipped with all the tools necessary to treat common to complex injuries and illnesses. DispatchHealth works closely with payers, providers, health systems, EMS, employer groups and others to deliver care in the home to reduce unnecessary emergency room visits, hospital stays and readmissions. Acute Care medical teams are available seven days a week, evenings and holidays and can be requested online or via a quick phone call. DispatchHealth is partnered with most major insurance companies.
Optum Ventures is the independent venture fund of UnitedHealth Group. Optum Ventures invests in digital health companies that use data and insights to help improve consumers’ access to healthcare services and how care is delivered and paid for, and that make the healthcare system more reliable and easier to navigate.
Adams Street Partners is a global private markets investment manager with investments in more than thirty countries across five continents. The firm is 100% employee-owned and has $50 billion in assets under management. Adams Street strives to generate actionable investment insights across market cycles by drawing on 50 years of private markets experience, proprietary intelligence, and trusted relationships. Adams Street has offices in Austin, Beijing, Boston, Chicago, London, Menlo Park, Munich, New York, Seoul, Singapore, and Tokyo.