Homeward, a healthcare delivery company focused on rural healthcare, 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 Medicare Advantage member care in rural Michigan. Homeward said it would use the new funds to accelerate its expansion into new markets through value-based contracts with health plans.
The funding round also includes participation from General Catalyst, which led Homeward’s Series A funding, and Lee Shapiro and Glen Tullman, co-founders of 7wireVentures, an early-stage healthcare venture fund. .
Homeward will also invest in scaling its multidisciplinary field and virtual care teams, including specialty care, as it expands to more states in the coming months.
WHY IT’S IMPORTANT
Homeward fills a need in rural America, according to CEO Dr. Jennifer Schneider.
“Despite the fact that nearly one in five Americans live in rural communities, our current healthcare system is ill-equipped to support these people with consistent access to high-quality care,” Schneider said in a statement. “Our target market is narrowly distributed among a small handful of health plans. In fact, about 90% of Medicare-eligible beneficiaries who live in rural markets are covered by seven payers. This funding allows us to reach rural populations even faster in partnership with local health plans and physicians.
THE GREAT TREND
Homeward is a network-based provider that deploys an integrated care model including mobile and community-based care and technology. Return providers see members in mobile clinics throughout the community, virtually, and in members’ homes. These teams perform physical exams, perform diagnostic tests and integrate with regional health systems, local physicians and specialists to ensure coordination of care, referring members to local in-person services when necessary.
The company supports eligible Medicare beneficiaries, including partnering with Medicare Advantage plans, and takes full risk for the cost of care for its members.
Schneider and other veterans of chronic care management company Livongo launched Homeward in March with a $20 million investment from General Catalyst.
It quickly partnered with Rite Aid to enable pharmacists to connect their Medicare-eligible customers with Homeward for care.
Americans living in rural communities are experiencing growing health disparities due to accelerating rural hospital closings and doctor shortages. In fact, Americans living in rural communities suffer a 23% higher death rate than those in urban communities due to lack of access to care, according to Homeward.
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