Human beings tend to excel in gazillion different areas, and yet their greatest ability is the one that pushes them to get better on a consistent basis. This ability, in particular, has already fetched us some huge milestones, with technology appearing as a major member of the stated squad. The main reason why technology enjoys such an esteemed stature among people is down to its skill-set, which realized all the possibilities for us that we couldn’t have imagined otherwise. Nevertheless, if we look a little bit closer, it should become clear how the whole runner was also very much inspired by the way we utilized those skills across a real-world environment. The latter component was, in fact, what gave the creation a spectrum-wide presence, including a timely appearance on our healthcare block. Technology’s foray into healthcare was perfect with its timing, as it came right when the sector was beginning to struggle against its obsolete structure. This reality, fortunately enough, went through a complete overhaul under the new regime, but even after going so far, the emerging medtech concept will somehow keep on becoming bigger and better. The same has turned increasingly evident over the recent past, and truth be told, a new piece of funding should do a lot to solidify that trend moving forward.
DispatchHealth, the nation’s first comprehensive in-home, high acuity medical care provider, has successfully secured over $330 million in a combination of debt and equity financing. Led by Optum Ventures, the $259 million Series E round saw further participation coming from the likes of Adams Street Partners, Blue Shield of California, and Humana. For the remaining money, K2 HealthVentures, Silicon Valley Bank and SVB Capital would come forward and provide debt financing of around $75 million. This, notably enough, doesn’t include the additional $75 million, which is contingent upon various growth initiatives.
Talk about where DispatchHealth plans on using the stated cash, it is expected to make a significant investment in expanding operations across all its existing markets, while also making a bid to enter more of them in the near future. Beyond that, the company will dedicate some money towards platform development so to become better positioned for delivering consistent and scalable patient-centric care. As a part of the latter ambition, the Denver-based medtech player will also actively look to grow its portfolio, with the company’s primary focus falling on elements like in-home care and the wider last mile care capabilities.
“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.”
Founded in 2013, DispatchHealth started out with an intention to reduce the significant cost burden imposed by our brick and mortar acute care system. To achieve this goal, the company would create a process where it works alongside payers, providers, health systems, employers, and others to provide a value-based alternative to high-cost settings such as the emergency room, hospital ward or skilled nursing facility. Now, while cutting back on costs is certainly an integral part of DispatchHealth’s selling proposition, it has also displayed a clear skill in terms of improving clinical outcomes over time.
Active across 34 US states at the moment, DispatchHealth’s proprietary platform is already well-equipped to handle several aspects of in-home care such as logistics, onboarding, risk stratification, care coordination, and analytics etc. However, even after having so much in the bag, the stated platform should only expect to get smarter on the back of its latest cash injection.
