At-Home Care Startup MedArrive Announces $8M Funding Round

The at-home care startup MedArrive has raised $8 million more in funding, the company announced Tuesday. That brings its funding total to over $40 million since it officially launched in late 2020.

The new funding was led by Cobalt Ventures, which is a subsidiary of Blue Cross and Blue Shield of Kansas City. In late 2021, the company announced its $25 million Series A.

Amid a very difficult funding environment, MedArrive has secured enough capital to feel comfortable moving forward, CEO Dan Trigub told Home Health Care News.

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“I think at the end of the day, investors – and especially strategic investors – are recognizing our unique approach to delivering care into the home,” he said. “It really comes down to our cost-effective, scalable solution and [its ability] to reach our most vulnerable and underserved populations, really focusing on Medicaid and dual populations.”

The $8 million will be put towards growth initiatives, as well as the “expansion of health plan relationships.” MedArrive’s notable health plan partners already include Molina Healthcare and Centene (NYSE: CNC), and Trigub said the company is working with other plans on partnerships that have not yet been announced.

MedArrive partners with both providers and payers to enable care services in the home. To do so, it leverages EMS professionals as well as physician-led telemedicine.

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In December, the company announced a partnership with the Texas-based Superior HealthPlan. Earlier in 2022, it partnered with Brave Health to combine at-home and behavioral health care services. In addition to the aforementioned plans, it also works with SCAN Health Plan and Bright HealthCare.

“We need to be able to execute and grow with the demand [we’re seeing] in our solution,” Trigub said. “I think, so far, we’ve been able to do that, but we certainly need to continue to grow and execute, and most importantly, not lose sight of what’s most important, which are the patients.”

MedArrive’s patients are mostly Medicaid or dual-eligible beneficiaries, individuals with complex health needs that plans and providers may not always have great visibility into. The company is a risk-bearing entity and relies on its ability to help patients avoid costly and dangerous health outcomes.

The funding will help the company, most importantly, grow its team – to hire more nurse practitioners, case managers, social workers and back-office staff. It will also allow it to expand services beyond just longitudinal care, Trigub said.

He also said that there’s “no doubt” payers in general are recognizing the need for home-based care capabilities more of late, and yearning for them.

“There’s no question [that’s the case],” Trigub said. “They’re seeing the need to deliver care into the home and do it with unique care delivery models. … It’s not a winner-take-all market. There’s not one company that’s going to do everything. But I think we have a very unique approach, that’s very scalable, that can really help lower total cost of care, which is really important for these Medicaid plans.”

On its end, Cobalt Ventures has also invested in companies such as Vera Whole Health, Onco Health and AristaMD.

“MedArrive has quickly become a leader in delivering health care at home solutions with a unique platform and agile workforce that helps lower cost of care for health plans while building trust, improving access to care and driving better outcomes for their members,” David Eichler, managing partner of Cobalt Ventures, said in a statement.

As for the turbulent funding environment, it’s a reality MedArrive has been prepared to get through for some time now. The company pivoted during the public health emergency (PHE) to become more COVID-focused, and has since pivoted back.

It’s also adapted to get by on the funding it has, no matter how much that may be.
“First of all, people always need health care,” MedArrive COO and co-founder Inna Plumb told HHCN in November. “Second, we’re not consumer-driven. We’re doing insurance-based care. You can argue that those populations actually grow when economic times get more turbulent. We’re not seeing a contraction on the demand side. If anything, we’re only seeing acceleration. I think most of that’s driven by our success and results, but could be the macro environment as well.”

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