Originally published by Mobi Health News on April 11, 2022
This morning, value-based care startup Vytalize Health announced a $50 million Series B funding round. The latest infusion of capital was led by Enhanced Healthcare Partners with participation from Kittyhawk Ventures, Kawn Ventures, NorthCoast Ventures and other existing investors.
This new funding round brings the company's total raise to roughly $70 million.
WHAT IT DOES
Founded in 2014, Vytalize Health got its start as a Medicare-focused primary care practice. Today the company uses technology to help providers offer value-based care programs.
"Vytalize Health is a value-based care platform focused on seniors. We partner with small and large primary care practices and help them make the transition to value-based care," Faris Ghawi, CEO of Vytalize Health, told MobiHealthNews. "Our goal is to basically focus on strengthening the relationship between the primary care doctors and their patients, and to have that foundation of successful value-based care."
The company does this in a few ways. First the company is able to provide physicians with data about their patients, practice, finances and enrollment. The company also provides a risk-bearing entity with a "unique reimbursement model."
Vytalize Health brings its clients a virtual in-home clinic that works in collaboration with the practices to help manage high-risk populations.
"We also have a unique practice-engagement model to help [clients] spend more time on their high-risk population, whether that's the doctors or the office managers, office staff, to basically activate the whole practice to focus on senior patients and give them more attention and just care in general in between offices as well," Ghawi said.
Currently the company works in 16 states and manages 130,000 Medicare patients. In 2021, Vytalize Health scooped up patient financial-engagement platform MedPilot.
"We're huge believers in value-based care in the sense that we feel like it is the reimbursement model that will allow physicians and everybody else in the industry to just do the right thing by the patient. If you align the incentives with the goals, then everything sort of falls into place."
Ghawi said that new innovations in technology and data have made implementing value-based care systems easier.
WHAT IT'S FOR
The company plans to use its new capital for growth.
"We just raised $50 million Series B, and [we're] basically using this funding to build up the team, expand into new markets and begin the integration beyond the primary care practices," Ghawi said.
MARKET SNAPSHOT
Vytalize Health isn't the only digital health company looking to change senior care in the future. In September, hybrid care provider One Medical purchased tech-backed Medicare provider Iora Health for $1.4 million. The acquisition allowed One Medical to tap into already established relationships with Medicare Advantage Plans, original Medicare and Medicare Direct Contracting programs.
Medicare Advantage-focused startup Devoted Health scored a whopping $1.15 billion in Series D funding in 2021 in order to support its nationwide expansion. Additionally, EasyHealth, a Medicare-focused health tech company, scored $135 million in credit and equity funding in November.