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DispatchHealth Raises More Than $330 Million to Expand Its Technology-Enabled Ecosystem of High Acuity Care in the Home
News provided byDispatchHealth
Nov 23, 2022, 7:18 PM ET
Optum Ventures leads the equity financing round to further accelerate DispatchHealth's leading in-home, technology-enabled system of care
Financing will help DispatchHealth scale its hospital alternative care model, advance innovation of its technology platform, and fund strategic growth initiatives to meet the growing need of in-home high acuity care
DENVER, Nov. 23, 2022 /PRNewswire/ -- DispatchHealth, the nation's first comprehensive in-home, high acuity medical care provider, today 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."
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.
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. For more information, visit DispatchHealth.com.
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 health care system more reliable and easier to navigate. For more information, visit www.optumventures.com.
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. Visit www.adamsstreetpartners.com.
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