Medically Home Seeks To Expand Business Model After Securing $ 110 Million Strategic Investment
Home hospital facilitator Medically Home announced on Monday that it was receiving another strategic investment, one totaling $ 110 million.
The Mayo Clinic and Kaiser Permanente invested $ 100 million in Medically Home in May 2021. Prior to that, the company had raised $ 64 million.
The most recent investment was led by Baxter International Inc., Global Medical Response and Cardinal Health, with contributions from the Mayo Clinic and Kaiser.
“The big picture is that everyone has focused on decentralizing home care,” Medically Home CEO Rami Karjian told Home Health Care News. “What started as a home hospitalization has now expanded. What this announcement really represents is that we are taking it to the next level and we can evolve. “
In other words, the Medically Home Hospitalization Facilitator wants to be more than that. At this point, while the home hospital clearly remains a priority, the company wants to be a leader in providing more advanced home care in general.
Boston-based Medically Home provides healthcare systems with the tools to care for patients by navigating reimbursement models, implementing technology, and providing necessary clinical services. More than 7,000 patients nationwide have been treated according to his model.
Its new investment partners come from more diverse backgrounds.
For example, Baxter International has a portfolio of diagnostic, critical care and renal care solutions, as well as a line of hospital and surgical products used in patient homes, hospitals and physician offices. Global Medical Response (GMR) is a provider of medical care, primarily in the areas of emergency services and patient relocation. Cardinal Health, meanwhile, is a distributor of pharmaceuticals, medical products and digital health solutions.
All three companies have already worked in the field of home care. Cardinal Health, in fact, already has a home care solutions arm.
“Mayo and Kaiser represent health systems and integrated systems that want to make home care more decentralized,” Karjian said. “GMR represents 30,000 paramedics who have an essential role to play in obtaining home care. In particular, given the nursing shortages that we have seen, this represents net new capacity for care that was not previously available. Baxter and Cardinal represent the bright side of bringing care from institutional settings – like hospitals and NFCs – to the home. “
The new investment capital, which Medically Home says will help it significantly expand its network and capacity, comes at a time when many hospitals in the United States are reaching capacity.
The Omicron variant of COVID-19, although milder than previous strains, has been transmissible enough to cause familiar stress in hospital hospitals.
Currently, the majority of states report a hospital capacity greater than 70%, according to the US Department of Health and Human Services (HHS). Almost 78% of hospital beds are occupied. Over 18% of these are occupied due to COVID-19.
Karjian believes the investment will help Medically Home gain faster access to more health systems, help it expand into rural areas, and also potentially expand its reach outside of the United States.
“This investment will allow us to bring more technology and more products to [our partners] and enable them to help the patients they care for, ”he said. “It’s also going to help us as we think about expanding beyond the United States, and even into the United States. address more of the challenges we face in terms of health equity and disparity.
The five companies involved in the investment reiterated in statements the importance of providing more home care.
“Enabling patients to obtain equitable health care and decentralized care to receive hospital care is no longer health care of the future – it is here today,” said Suzanne Foster, President from Cardinal Health at-Home Solutions, in a statement. “Cardinal Health is dedicated to working closely with Medically Home and its partners to collectively deliver optimal patient experiences and outcomes at home. “
Medically Home, Mayo Clinic, and Kaiser are all founding members of the Moving Health Home (MHH) coalition. The group’s goal is to advocate for favorable home care legislation in Washington, DC
As Medically Home tries to expand its reach and influence, Karjian also said he is confident in future legislation proposed by MHH that will help empower home care players from all walks of life.