Care enablement system Fabric buys telehealth provider MeMD from Walmart

The acquisition will allow Fabric to expand its provider network and add behavioral health coverage

In 2018, Aniq Rahman's father suffered a heart attack; during his hospital stay, Rahman witnessed what the dedication of healthcare professionals while also seeing the inefficiencies and complexities caused by outdated technology and siloed systems. That is what led him to found care enablement system Fabric.

"Fabric aims to address these issues by creating seamless, efficient interfaces that streamline patient and provider experiences, increase access to care, and improve clinical outcomes," he told VatorNews.

"By leveraging AI to automate tasks, our end-to-end virtual care platform replaces fragmented point solutions, guides patients throughout their care journey, and frees up providers’ time spent on administrative tasks to, ultimately, decrease the cost of care delivery."

Currently, Fabric is used in various healthcare settings to improve efficiency and patient outcomes, including emergency rooms, virtual care, and post-discharge. Now, the company is looking to expand its provider network, while also adding behavioral health coverage, so it announced the acquisition of MeMD from Walmart on Friday. No financial terms of the deal were disclosed. 

MeMD, which was founded in 2010, and acquired by Walmart in 2021, is a provider of virtual behavioral, urgent, and primary care benefits for 30,000 corporate, institutional, and health plan partners, and 5 million members.

Fabric and MeMD have worked together before as, prior to the acquisition, MeMD was a customer of Fabric’s Engagement Suite, "so we knew the product and team were leaders in the virtual care space," Rahman said.

"The company is a natural fit for Fabric because we both prioritize high-quality care, patient satisfaction, and operational efficiency. Both companies are committed to leveraging technology to enhance healthcare delivery and reduce costs," he explained.

"The acquisition allows us to expand our employer and payer offerings, growing our clinical and behavioral health network while integrating our advanced clinical intelligence and automation."

In emergency rooms, Fabric's In-Person Care Suite decreases room-to-discharge times by up to 30 minutes, while in virtual care its AI-enabled platform turns video visits into 89-second encounters, significantly increasing provider capacity. Post-discharge, the company engages patients in their care plans and facilitate follow-up care through automated SMS and email engagement pathways.

The company also assist payers and employers by reducing healthcare costs and increasing access to care for their employees and members.

As a result of this acquisition Fabric's customers, which include Luminis Health, OSF HealthCare, MUSC Health, Highmark, and Intermountain Health, will benefit from an expanded provider network, improved efficiency through our integrated technology, and will now have access to virtual behavioral health services, is a big need that we’ve been looking to fill, Rahman said.

"They will experience smoother, more comprehensive care journeys, with enhanced support for scheduling, follow-ups, and lab services. The integration will lead to better health outcomes and reduced costs for employers and employees," he explained.

"The team’s experience in serving employers and payers complements our strengths in clinical automation and provider efficiency. Together, we can offer a more comprehensive solution that includes patient-initiated scheduled workflows and support for lab services, ultimately improving operational efficiency and consumer experience."

MeMD customers, meanwhile, will benefit from Fabric’s clinical intelligence and automation, which will further reduce the cost of care for employers and employees.

Going forward, MeMD will continue operating independently, while Fabric will work with the MeMD team to integrate clinical services and technology. MeMD's team of healthcare professionals will be joining Fabric's network.

Fabric's ultimate goal is to make high-quality care accessible for everyone while reducing the cost of care delivery, said Rahman, and acquiring MeMD helps the company achieve this by expanding its employer and payer solutions and enhancing our behavioral health strategy. It also allows Fabric to reach a broader audience, improve operational efficiency, and deliver better health outcomes.

"We are excited about the opportunities this acquisition brings to our existing customers and the healthcare industry as a whole. Tackling the rising cost of healthcare and the poor patient experience is something retail, healthcare and tech giants have been going after for years, and we think we’ve got the right mix of product innovation, leadership and industry partners to finally shake up how healthcare is delivered in the U.S." said Rahman. 

(Image source: memd.me)