DispatchHealth closes on $33M growth financing
Wednesday May 8, 2019
DENVER -- DispatchHealth, a company that delivers on-demand health care to patients directly in the comfort of their own home, announced the closing of a $33 million growth capital financing.
The investment was led by Echo Health Ventures, a strategic collaboration of Cambia Health Solutions and Mosaic Health Solutions, with participation from existing investors Alta Partners, Questa Capital and additional strategic investors.
The new funding will enable DispatchHealth to rapidly open additional locations across the U.S. and expand its treatment capabilities for patients with high medical needs, the company said.
The new resources will also accelerate the investment in DispatchHealth's mobile application and logistics platform, to support the delivery of acute care in a timely manner to thousands of patients nationwide in 2019.
"All Americans deserve access to lower cost health care,” said Dr. Mark Prather, DispatchHealth CEO and co-founder.
“Our growing senior population is a group that often faces mobility limitations and can benefit from the safe, effective and convenient care that in-home treatment provides. We're committed to helping all individuals receive the right care, at the right time, in the comfort of their own home or place of need.
“The financial support and strategic expertise of Echo Health Ventures will allow us to extend our current care model into longer-term, episodic interventions for individuals requiring more advanced treatment."
DispatchHealth said it continues to work in partnership with health systems and payers to improve the lives of Americans needing complex care. The expansion of the company's advanced medical services into longer episodes of care will help address the needs of the three in four Americans aged 65 and older who are living with multiple chronic conditions.
These patients often struggle with access to care and face limitations with activities of daily living. The company's delivery of advanced in-home health care is helping to improve outcomes across a broad spectrum of care needs and is expected to save more than $100 million in direct medical spending in 2019.
The company said it is dedicated to the creation of a seamless care experience. In order to ensure that DispatchHealth is an integrated part of the patient's care continuum, the company has developed technology integrations that facilitate care coordination.
After treatment, each medical team sends timely and detailed notes back to a patient's primary care physician, senior living community (if applicable) and the patient directly to ensure all parties are kept informed and connected.
Among the hundreds of patients seen each day throughout the country, DispatchHealth is able to collect valuable data to spot trends in care needs among different age demographics and identify important social determinants of health.
"With 22.2 million unnecessary 911 transports occurring each year, we see a significant opportunity for DispatchHealth to reduce the cost of health care while improving outcomes and satisfaction for patients," said Dusty Lieb, the investment partner who will represent Echo Health Ventures on the DispatchHealth board of directors.
"Dr. Prather and his team's deep medical expertise and consumer-centric vision uniquely positions the company for success in an evolving market. We look forward to supporting DispatchHealth to improve the health care system at large."
DispatchHealth's on-demand model currently serves 10 different markets across eight states, with plans to continue to grow rapidly across the U.S.
Patients can request medical care via phone, mobile app or website and a medical team will arrive within two hours equipped with roughly 70 percent of the same tools and equipment that are found in the typical emergency room.
Whether a patient is sick with the flu, has a laceration or requires a higher-level of complex care for serious complications such as asthma, diabetes or chronic obstructive pulmonary disease, DispatchHealth arrives prepared to handle a wide array of high-acuity cases. DispatchHealth is also an ideal solution for avoiding readmissions from recently discharged hospital patients who experience complications.
DispatchHealth partners and collaborates with many large health systems across the country, including Baystate Health, Bon Secours Richmond, MultiCare and Texas Health, to provide exceptional care for patients in a lower-cost setting.
DispatchHealth also works with most major insurers and handles billing directly with those companies, including Medicare, Medicaid, Medicare Advantage plans, Managed Medicaid plans, Anthem/Blue Cross Blue Shield, United Healthcare, Aetna, Humana and Cigna.