Devoted Health, a next-generation Medicare Advantage plan and tech-enabled startup, made a financial splash to end 2023 – announcing $175 million in new funding.
The Massachusetts-based Devoted Health is an all-in-one health care company that delivers virtual-first care and insurance to primarily Medicare Advantage patients. It’s one of the many payers that has prioritized home-based care as well.
Devoted, founded in 2017 by brothers Todd and Ed Park, was one of the first organizations to popularize the term “payvidor.”
The company delivers in-home care by combining Medicare Advantage coverage with its virtual and in-home care provider — Devoted Medical — as well as partnerships with other home health providers.
The company has seen significant growth recently, boasting a year-over-year increase in membership of over 70%, according to the company. Devoted Health now serves over 140,000 members.
In 2023, Devoted Health also broadened its service footprint, extending its reach to cover a total of 299 counties across 13 states during the last Medicare annual enrollment period.
“In a health care system that isn’t always accessible or easy to navigate, we at Devoted Health are profoundly honored to provide each member with the same quality of care and service we’d want for our own families,” Ed Park, co-founder and CEO of Devoted Health, said in a statement. “It’s deeply gratifying to have so many others believe in the promise of our model, and we’re very excited to bring the love and world-class care that is Devoted to more and more Americans.”
According to Pitchbook, digital health funding remained low in Q3 of 2023, with $800 million in funding and just 60 new deals, both multi-year lows since at least 2020. Deals in the digital health space have been dropping since 2020.
Devoted Health’s $175 million was one of the highest funding rounds of any company, notably trailing Monogram Health’s $375 million Series C funding in January 2023.
The funding will help Devoted expand its reach across the country. It will help bolster its technology, clinical and operational capabilities, according to a company spokesperson.
“This includes continuing to innovate our home health care program and our proprietary technology platform,” the spokesperson said in an email to Home Health Care News. “By offering virtual and in-home care to members that complements the care they receive from their primary care physicians, we can ensure that members get the right care when they need it to keep them healthy.”
As the company has grown, recognition from the Centers for Medicare & Medicaid Services (CMS) has also come in the form of increased star ratings.
In 2023, 94% of all Devoted members in star-eligible plans enrolled in a 4-star, 4.5-star or 5-star plan, according to the company.
Devoted Health was also named to Fortune’s Best Workplaces in Health Care list and its Best Workplaces for Women list.
The funding was led by a lead syndicate made up of The Space Between (TSB), Highbury Holdings, GIC, Stardust Equity, Maverick Ventures and Fearless Ventures
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