June 23, 2020
Investment recognizes immediate and long-term need for in-home medical care for high-acuity patients
DispatchHealth, a provider of tech-enabled in-home health care, today announced the closing of $135.8 million growth capital financing. The Series C round was led by Optum Ventures and included participation from existing investors Alta Partners, Questa Capital, Echo Health Ventures, new investors Oak HC/FT, Humana Inc. (NYSE: HUM) and additional strategic investors.
This investment in DispatchHealth's comprehensive in-home care model is more pertinent than ever. For millions of patients with high medical and high social needs, DispatchHealth's services are a lifeline that provides high acuity, lower cost medical care with improved clinical outcomes. The additional funding enables DispatchHealth to help even more vulnerable, high-needs patients by growing in existing markets, expanding to new markets, and launching additional services.
DispatchHealth gives patients an alternative to brick and mortar health care. Expert clinicians designed the DispatchHealth model to translate the skillset typically found in an emergency room or in a hospital, where patients are treated in the context of their unique social situation.
Patients and their care partners can request DispatchHealth medical care via phone, mobile app or website, and a medical team arrives within two hours equipped with 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, DispatchHealth arrives prepared to handle a wide array of high-acuity cases.
"Approximately a third of the cost of the U.S. health care system is devoted to facility-based care delivery, such as emergency rooms, hospitals, and post-acute facilities," said Dr. Mark Prather, CEO and Co-Founder of DispatchHealth. "For seven years, our care model and technology platform have demonstrated lower costs and improved outcomes by delivering care safely in the home. Adoption has consistently grown, and our Net Promoter Score of 95 across our first 160,000 patient visits indicates high satisfaction. We appreciate the support of investors, and look forward to working with them to continue executing on our transformational vision."
DispatchHealth collaborates with large health systems, provider groups, and major insurers across the U.S. to focus on individuals with high medical and social needs whose care and quality of life greatly benefit from in-home care. This includes the majority of Commercial, Medicare Advantage and Managed Medicaid plans, as well as traditional Medicare and Medicaid.
"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.
"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," said Andrew Adams, Co-Founder and Managing Partner of Oak HC/FT.
"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.
DispatchHealth offers acute, extended, and advanced care services to treat simple to complex injuries and illnesses in more than 19 cities from coast to coast and is rapidly expanding to new cities across the country. DispatchHealth is open seven days a week, 365 days a year, including holidays. For more information, visit DispatchHealth.com.
DispatchHealth has redefined health care delivery to offer on-demand acute care and advanced medical care for people of all ages in the comfort of their own home. 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 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 via app, online or a quick phone call. Advanced Care and Extended Care patients must be referred by a health care professional. DispatchHealth is partnered with most major insurance companies. For more information, visit DispatchHealth.com.
About Optum Ventures
Optum Ventures is the independent venture fund of Optum, a leading information and technology-enabled health services business dedicated to helping make the health system work better for everyone, and part of UnitedHealth Group. Optum Ventures invests in digital health companies that use data and insights to help improve consumers' access to health care 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.
About OAK HC/FT
Founded in 2014, Oak HC/FT is the premier venture growth-equity fund investing in Healthcare Information & Services ("HC") and Financial Services Technology ("FT"). With $1.9 billion in assets under management, we are focused on driving transformation in these industries by providing entrepreneurs and companies with strategic counsel, board-level participation, business plan execution and access to our extensive network of industry leaders. Oak HC/FT is headquartered in Greenwich, CT, with offices in Boston and San Francisco.
Humana Inc. is committed to helping our millions of medical and specialty members achieve their best health. Our successful history in care delivery and health plan administration is helping us create a new kind of integrated care with the power to improve health and well-being and lower costs. Our efforts are leading to a better quality of life for people with Medicare, families, individuals, military service personnel, and communities at large.
To accomplish that, we support physicians and other health care professionals as they work to deliver the right care in the right place for their patients, our members. Our range of clinical capabilities, resources and tools – such as in-home care, behavioral health, pharmacy services, data analytics and wellness solutions – combine to produce a simplified experience that makes health care easier to navigate and more effective.
More information regarding Humana is available to investors via the Investor Relations page of the company's web site at www.humana.com, including copies of: