Virtual and in-home healthcare provider DispatchHealth today announced in a press release that they have raised $136m in a Series C funding round. The funding round was led by Optum Ventures, the venture arm of Optum, and had participation from existing investors Alta Partners, Questa Capital, Echo Health Ventures along with new investors Oak HC/FT, Humana, and additional strategic investors.
DispatchHealth explained that the funding will be used to grow in existing markets, get a presence in new markets, and expand their suite of virtual and in-home healthcare products and services.
Dr. Mark Pather, cofounder and chief executive of DispatchHealth “There are populations that have a lot of ER recidivism, and what causes it is often a social issue that’s hard to catch at the moment you have in the emergency room. Imagine taking the ER into the home, we call this contextual care planning, you’re building a care plan that’s in the context of their environment.”
Denver-based DispatchHealth gives patients an alternative to going into a local treatment center or hospital in more than 19 cities across 12 states in the United States with the funding helping the virtual and in-home healthcare provider increase this number.
The virtual and in-house healthcare provider was founded in 2013 with an experienced healthcare and engineering professionals designing the DispatchHealth business model to translate the skillset typically found in an emergency room or in a hospital, where patients can be treated in the context of their unique social situation.
DispatchHealth claims that their patients, or customers, and their care partners can request DispatchHealth medical care via phone, mobile app, or website, a medical team arrives within two hours equipped with the tools and equipment needed to perform high-acuity medical care.
Whether a patient is dehydrated and requires IV fluids, has a laceration needing repair, or requires higher-level interventions for asthma, chronic obstructive pulmonary disease, or congestive heart failure exacerbations, a team from DispatchHealth arrives prepared to treat a variety of simple or complex conditions, illnesses, and injuries.
The virtual and in-home healthcare provider claims to have seen close to 4,000 patients with COVID-19 like symptoms since March 1, 2020, including the first known COVID-19 positive patient in one of its larger markets.
During the month of May, the company stated that they had 15,210 care requests with the number significantly increasing since COVID-19 struck requiring people to stay home and have provided care to more than 170,000 patients so far in 2020.
“When I used to work in the emergency room patients got a generic care plan. I had version A and version B and it wasn’t necessarily tailored to their social situation,” Pather added.
DispatchHealth collaborates with large health systems, provider groups, and major insurance providers across the United States such as Medicare and Medicaid with the goal to focus on individuals with medical and social needs whose care and quality of life can get increased benefits from in-home care under their current insurance plan.
Andrew Adams, Co-Founder and Managing Partner of Oak HC/FT explained the value DispatchHealth offers by saying: “Delivering patient care, especially to those with high-acuity needs, should be seamless, integrated, and immediate. DispatchHealth’s technology platform combined with their adept medical teams on the front lines uniquely positions the company to deliver the right care, at the right time, in the comfort of a patient’s home when they need it most,”
The healthcare sector is getting an increased amount of attention as well as investors looking at opportunities that will add value to local communities, countries, and global healthcare programmes amid the global COVID-19 pandemic. CB Insights reported that in the first quarter of 2020, healthcare start-ups raised more than $14.6bn globally.
DispatchHealth joins a number of other healthcare companies that have successfully raised funds with medical imaging startup Nanox raising $20m and healthcare conversational AI raising $9m.
“DispatchHealth is extending health care beyond traditional facilities to the most accessible environment of all: the patient’s home. We are excited to continue partnering with DispatchHealth to drive value and outcomes for the industry,” said Larry C. Renfro, Managing Partner of Optum Ventures.
According to the virtual and in-home healthcare provider, they have successfully cut medical expenses by over $200m due to their capability to deliver high acuity care safely in the home which helps patients avoid ER and hospital visits and free up healthcare workers’ time.
The company claims that their virtual and in-home service on average costs between $200 and $300, a substantial saving compared to the $2,000 average cost of an ‘in-store’ patient visit at a hospital.
The virtual and in-home healthcare provider works with a number of healthcare systems and partners with the aim to keep emergency rooms clear during the COVID-19 pandemic by providing medical care virtually or in-home.
“Home is increasingly the place where people prefer to receive their care. This is especially true for older adults with multiple chronic conditions. We believe DispatchHealth’s clinical delivery model can improve the overall patient experience and health outcomes by allowing people to remain comfortable at home while also empowering the medical team to more easily identify patient needs than they can in a clinical setting,” said Susan Diamond, Segment President, Home Business of Humana.
This funding round brings the virtual and in-home healthcare provider total raised capital to $216.8m.
