Home-focused digital health platform Vesta Healthcare announced Tuesday it has raised an additional $65 million in growth capital.
The New York City-based Vesta is a clinical provider and technology services organization that connects caregiver insights to the rest of an individual’s care team. As part of its business model, the company partners with home care agencies, health plans and other providers to create value-based population health programs that emphasize clinical quality, improved health outcomes and personalized engagement.
“Our physicians, nurses and entire clinical team, backed by innovative technology, are truly changing the way care is delivered in the home every day,” Vesta CEO Randy Klein said in a statement. “Through this additional investment, we will be able to rapidly expand our presence as well as continue building novel care models and data-driven technology solutions for the home.”
Founded under the “Vesta Healthcare” name in 2018, the company’s fundraising total now climbs to $95 million. Vesta previously raised $30 million in 2019.
The most recent fundraising round was led by Deerfield Management Company, with participation from existing investors Oak HC/FT, Kaiser Permanente Ventures, Lux Capital and others.
“The past year has highlighted the critical nature of engaging caregivers in their homes as they work to keep members and loved ones safe and healthy at home,” Dr. Julian Harris, a partner at Deerfield, said. “Vesta’s ‘homecareist’ model and technology-enabled caregiver engagement have resulted in differentiated health outcomes and care for Vesta’s members.”
Vesta has expanded its footprint to a total of five states in the past year, with additional expansion planned for 2021.
The company plans to use the newly announced funding to expand its sales, marketing, operations and technology teams as it grows. Vesta likewise plans to use the growth capital to expand partnerships with home care agencies “as it takes increasing clinical and financial risk” for the populations it serves.
All sorts of companies that coordinate services in the home and share information across care teams have achieved similar success over the past several months. As payers and health systems aggressively shift care into the home, they’ve become increasingly in need of “care traffic control” partners that ensure smooth transitions and in-home support.
Vesta Healthcare was formerly known as HT Health, the developer of Hometeam.
In 2018, Vesta Healthcare transitioned from a direct-to-consumer business model to one where it partners with other agencies and insurers. The company also went from a private-pay and Medicaid focus to a payment structure largely based on Medicare-Medicaid dual eligibles.
“We are clearly defining our position within the at-home care space — one that exists to support at-home caregivers in delivering better care, improving quality of life, and reducing unnecessary costs and stress,” the company stated as part of its rebranding.