DispatchHealth, the nation’s first comprehensive in-home, high acuity medical care provider, announced it has raised more than $330 million in combined equity and debt financing. 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.
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. 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.
“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.”
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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. 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.
DispatchHealth will use the financing to:
- Expand its proven in-home high acuity care ecosystem in existing markets and key expansion markets;
- Accelerate its technology platform development to deliver consistent and scalable patient-centric care; and,
- Strategically grow its portfolio of in-home system of care and last mile care capabilities.
“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.
SOURCE: PR Newswire