Hospital-at-home company raises $10M in Series B funding
Medically Home — a Boston-based technology-enabled services company — has raised $10 million in Series B funding. The round was led by Cardinal Health and other investors.
Founded in 2017, Medically Home brings hospital-level care into the home, sending clinicians, technology, equipment, medication and supplies directly to acutely ill patients’ bedsides.
To date, Medically Home has raised a total of $24 million in capital between series A and B funding rounds. The most recent funding round will allow the company to further scale its efforts and better deliver cost-efficient care, according to a press release announcing the news.
“The capital will fund the growth and deployment of the Medically Home virtual hospital model,” a Medically Home spokesperson told Home Health Care News in a statement. “We expect to announce joint venture partnerships in the coming weeks. In addition, we will expand in Boston as well.”
Currently, Medically Home serves patients in select parts of Massachusetts, New Jersey and Indiana. It has plans to add new cities “over time,” according to Medically Home’s website.
Patients with the following conditions are eligible for Medically Home’s services: heart failure; pneumonia; COPD; asthma; respiratory infections and inflammations; cellulitis; urinary tract infections; pulmonary embolism; deep vein thrombosis (DVT) and gastroenteritis. Those recovering from hip and knee replacement surgery are also eligible.
The model costs roughly 30% less than a traditional hospital stay, according to Medically Home.
Recent backing from Cardinal Health and other investors shows the health care system’s necessary move toward value-based care, company leadership says.
“Tailwinds are growing for our Medically Home program because the market is demanding creative, high quality, cost-effective solutions,” CEO Richard Rakowski said in the press release announcing the news. “More and more providers are embracing strategies to enable virtual capacity, that can substitute for its traditional inpatient settings.”
BrightSpring Health Services adds Tennessee home health company
Home Health Care of East Tennessee and its affiliates have merged with Nashville-based Adoration Health, which is a part of the BrightSpring Health Services family of brands.
Financial terms of the deal were not disclosed.
Adoration Health offers home health and hospice services to 1,200 people in central Tennessee. Home Health Care of East Tennessee serves 17 counties in southeastern Tennessee and 14 counties in western Mississippi counties.
Meanwhile, Louisville, Kentucky-based BrightSpring Health Services provides behavioral health and home health services, among others, for medically complex, high-need populations in 47 states.
BrightSpring decided to merge the companies in part to widen its footprint in Tennessee and Mississippi.
Formerly known as ResCare, BrightSpring rebranded in August 2018. In March 2019, the company was acquired by Global investment firm KKR and an affiliate of Walgreens Boots Alliance Inc. (Nasdaq: WBA) for $1.32 billion.
BrightSpring merged with pharmacy company PharMerica as part of the deal.