Vesta Healthcare, a digital health platform focused on home-based care, pulled in $65 million in growth capital to help it expand in other states and increase program offerings.
The New York City-based startup was founded in 2018 to support high-need, frail seniors at home and connect their caregivers’ insights to the rest of the care team. Vesta’s unique “Homecareist” model establishes a specialized provider team that manages and coordinates in-home care between patients aging at home and their caregivers, both paid and unpaid, and the rest of care delivery, according to the company.
The financing was led by Deerfield Management Company with participation from existing investors Oak HC/FT, Kaiser Permanente Ventures, Lux Capital, Generator Ventures, Nationwide, CareCentrix and Epstein Partners as well as new participation from K2 HealthVentures and an unnamed investor.
Vesta Healthcare previously raised $30 million in 2019, bringing total funding to $95 million. Vesta plans to use the new capital to develop partnerships with home care agencies over the next few months and expand its ability to take on population health programs and risk contracts.
“Our physicians, nurses, and entire clinical team, backed by innovative technology, are truly changing the way care is delivered in the home every day. Through this additional investment, we will be able to rapidly expand our presence as well as continue building novel care models and data-driven technology solutions for the home,” said Randy Klein, CEO of Vesta Healthcare, in a statement.
Vesta partners with home care agencies, health plans and providers to create value-based population health programs that emphasize clinical quality, improved health outcomes and personalized engagement.
By working with home care agencies, professional aides and unpaid caregivers such as family and friends, Vesta recognized the ability to reduce avoidable hospitalizations, emergency room visits and other facility-based care. Vesta Homecareists empower caregivers and care teams to improve health outcomes and keep members healthy and cared for at home.
Vesta Healthcare’s program serves as an early warning system to support preventive intervention and avoid unnecessary hospitalizations and other health events that may reduce people’s ability to age safely in their homes.
The Vesta program has shown that 88% of urgent alerts can be managed and resolved in the home in partnership with caregivers, resulting in an over 30% reduction in emergency room visit and hospital admission rates, the company said.
“The past year has highlighted the critical nature of engaging caregivers in their homes as they work to keep members and loved ones safe and healthy at home. Vesta’s ‘Homecareist’ model and technology-enabled caregiver engagement have resulted in differentiated health outcomes and care for Vesta’s members,” said Julian Harris, M.D., a partner at Deerfield, in a statement.
The COVID-19 pandemic put a new focus on the importance of home care as well as the strain on caregivers and the people who rely on them, according to Annie Lamont, co-founder and managing partner of Oak HC/FT.
“With proven tech-enabled clinical programs designed to support patients and caregivers through all circumstances, Vesta is making a meaningful impact on people’s daily lives,” Lamont said.
In-home health care is a booming market, with investors pouring major cash into companies in the space.
Home health care provider DispatchHealth recently banked $200 million in series D financing less than one year after closing a $135.8 million series C round.
Ambulnz, a company that offers medical mobility and transportation services, plans to go public through a merger with a blank check company in a deal that will value the combined entity at $1.1 billion.
Signify Health, which provides a value-based care platform that uses advanced analytics and other technology to shift health services toward the home, went public in February after raising $564 million in its initial public offering.
Heal, a company that offers both telemedicine and doctor house calls, raised $100 million backed by Humana. The venture-capital-backed company has raised $164 million from investors to date.
Even Amazon, through its Amazon Care program, is making moves into home-based healthcare services. In 2019, Amazon announced it was piloting a new virtual health service benefit for employees and their families in the Seattle region called Amazon Care. The tech giant said the service combines “the best of both virtual and in-person care” by offering virtual visits, in-person primary care visits at patients’ homes or offices and prescription delivery.
Over the past year, Vesta has expanded its footprint and now operates in five states, with additional expansion planned for this year. Vesta has nearly nationwide coverage through its affiliated medical group. With rapid expansion of network participation, Vesta has quickly scaled its ability to deliver virtual chronic care management and remote health monitoring to members from the comfort of home.