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The company matches patients with over 40,000 products and services for their homecare needs
The pandemic certainly increased the desire for home-based care; at first is was out of necessity, as doctor's offices closed down and there was no other way to access care, and then it was because people realized they actually liked these new modes of delivery, notably telehealth.
That demand was there even before the pandemic, though, said Vijay Kedar, co-founder and Chief Executive Officer of Tomorrow Health, a company that uses technology to improve the way home-based care is ordered, delivered, and paid for.
In fact, this is something Kedar experienced with his own mother when she had cancer over seven years ago, something he has written about previously.
"Patients face myriad obstacles in receiving life-sustaining home healthcare and equipment, with three in four patients reporting complications getting the home-based care they need," he explained.
"We at Tomorrow Health streamline access to such care, helping hundreds of thousands of patients transition from the hospital and manage chronic conditions."
On Wednesday, the company announced a $60 million Series B round led by BOND, with participation from Andreessen Horowitz, Obvious Ventures, BoxGroup, and Sound Ventures. The round, which was oversubscribed, brings its total funding to date to $92.5 million.
Tomorrow's technology makes order placement, supplier routing and end-to-end tracking and visibility more efficient. It matches patients with suppliers that provide over 40,000 products and services, while also considering factors such as quality, specialization, insurance coverage, and geography in the matching process.
Through its partnerships with insurers and home-based care suppliers, the company is able to cover millions of Americans.
"Enterprise payor partners contract with Tomorrow Health to manage patients’ home-based care across all lines of business, helping payors transition to value-based care models by introducing standards of quality; incentivizing higher quality care and providing providers with the tools to succeed in that environment and deliver higher value care," Kedar said.
As a result of using Tomorrow Health, patients have seen faster discharges and reduced readmissions, with 97% of patients starting treatment on time, compared to industry average of 50%, while medical providers spend 45% less time ordering and managing home-based care, and suppliers are spending 60% less time processing orders. That has led to over 15% savings for insurers on home-based care spend.
While the demand for home-based care isn't new, the pandemic was still a boon to the company, which saw its ARR grow 317% from 2021 to 2022.
"We leaned in to help health plans speed the transition towards high-quality, more efficient home-based care, which was a necessity throughout the pandemic and led to an increasing realization of the value proposition for home healthcare," said Kear.
"We’ve seen the demand only accelerate since COVID as home-based care has remained a top priority and Tomorrow Health has established ourselves as the leading solution in the space."
Tomorrow Health plans to use the new funding to expand partnerships with national and regional health plans, grow in new markets, and invest in its market-leading technology. It will also be expanding its team, hiring more engineers and product managers across its business development, engineering, product and operations teams.
Ultimately, the company's mission is to restore the home as the primary site of care, which it will do by scaling to hundreds of millions of patients, Kedar explained.
"Advocating for patients is at the heart of everything we do. It guides our priorities, drives our decisions, and inspires us to come to work every day. We’re passionate about expanding access to high-quality home healthcare because we know firsthand how it enables patients to thrive," he said.
"Our latest funding round will enable us to expand partnerships with national and regional health plans, grow in new markets, and invest in our market-leading technology. At a time when many companies in the market are understandably pulling back on growth, we are fortunate to be pushing forward."
(Image source: tomorrowhealth.com)
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