Homeward secures $50 million in Series B funding and announces Priority Health partnership
Homeward, a healthcare delivery company focused on rural healthcare, has 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 deliver care to Medicare Advantage members in rural Michigan. Homeward said it would use the new funds to accelerate 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, cofounders of 7wireVentures, an early stage healthcare venture fund.
Homeward will also invest in scaling its on-the-ground and virtual multidisciplinary care teams, including specialty care, as it expands into additional states in the coming months.
WHY THIS MATTERS
Homeward addresses 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 individuals with consistent access to high-quality care,” Schneider said by statement. “Our target market is tightly distributed among a small handful of health plans. In fact, approximately 90% of Medicare-eligible beneficiaries who live in rural markets are covered by seven payers. This funding enables us to reach rural populations even faster in partnership with health plans and local physicians.”
THE LARGER TREND
Homeward is an in-network provider that deploys an integrated care model including mobile, community-based care and technology. Homeward providers see members in mobile clinics throughout the community, virtually, and in members’ homes. These teams conduct physical exams, perform diagnostic tests, and integrate with regional health systems, local physicians, and specialists to provide care coordination, referring members to local in-person services as needed.
The company supports Medicare-eligible beneficiaries, including by partnering with Medicare Advantage plans, and takes full risk for the cost of care of its members.
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 increasing health disparities due to accelerated rural hospital closures and physician shortages. In fact, Americans living in rural communities suffer a mortality rate 23% higher than those in urban communities due to the lack of access to care, according to Homeward.
Email the writer: SMorse@himss.org