Tomorrow Health — a startup that can deliver roughly 40,000 different types of medical supplies into patients’ homes — has raised $25 million in a Series A funding round.
The company began operations officially in April of 2020, which was earlier than expected due to the COVID-19 crisis. Venture capital giant Andreessen Horowitz led the fundraising round, with additional investment from Obvious Ventures and BoxGroup.
By partnering with more than 125 health plans and hospital systems across 29 states, Tomorrow Health is able to streamline operations and delivery in an Amazon-like way. Examples of the medical gear Tomorrow Health can provide include wheelchairs, walkers, ventilators and other often-utilized equipment in home-based care.
One of the reasons that the company launched in the first place was because of testimonials from home health and home care agencies. Agencies frequently had difficulty obtaining manageable, reliable and consistent medical equipment and supplies for patients, Tomorrow Health co-founder and CEO Vijay Kedar noticed.
After the $25 million funding round, the startup will be able to help more agencies around the country.
“Given 2020’s challenges, over the last year, we have become more resolute in believing in the importance of improving home-based health care for all patients and their families,” Kedar told Home Health Care News in an email. “We have seen the difference that having a more efficient, supportive medical equipment supply process can have on patients, and we want to make sure we are doing everything we can to support better patient outcomes.”
This latest round of capital will be used to expand Tomorrow Health’s engineering, operations and business development teams, Kedar said. It will also be used to establish new payer and provider relationships.
The company also announced that Paul Mango, a former deputy chief of staff for policy at the U.S. Department of Health and Human Services (HHS) has joined its advisory board, along with former Humana CMO Roy Beveridge, a staunch supporter of home-based care.
“From a population health standpoint, there are few areas of greater importance than the safe transition of patients to home-based health care,” Beveridge said in a statement. “During a critical and often stressful time for patients and caregivers, the patient-first mentality of the Tomorrow Health platform delivers an unprecedented level of care that supports patients and their families as they navigate their home-based healthcare needs.”
Tomorrow Health has a proprietary data-driven platform that helps match patients with DME suppliers based on their insurance quality in addition to service quality, geography and product specialization.
The investment will also help advance that further, Kedar said.
“Our Series A advances Tomorrow Health by allowing us to make additional investments to our tech infrastructure and team to scale superior home-based health care in a meaningful way,” he said. “Specifically, we will be increasing our solutions for our stakeholders — evolving our tech to support home-based care suppliers looking to grow and operate more efficiently, delivering value to our payer partners and improving the experience for patients.”
Home-based care providers that do wish to use Tomorrow Health’s services can connect with the company through phone, fax or digitally, simply by sharing the relevant information about patients and insurance.
From there, Tomorrow Health does the rest of the work, Kedar said.
Menlo Park, California-based Andreessen Horowitz, its main backer, feels that the home health space is in need of an upgrade — and that Tomorrow Health offers just that.
“The home health space is still living in the Dark Ages and desperately needs an upgrade,” Julie Yoo, a general partner at Andreessen Horowitz, said in a statement. “Tomorrow Health is setting a new, patient-first standard for how we improve the process. Their holistic solution tackles each fragmented step of home healthcare and connects it all in one place.”
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