Pomelo Care, a value-based virtual provider of maternity care, has acquired the Doula Network, now offering virtual and in-person maternity care.
The Doula Network is a large national network of credentialed, in-network doulas in the U.S. The acquisition follows Pomelo’s recent $46 million series B raise and expands the company’s reach to more than 15 million covered lives, including more than 1 in 6 Medicaid beneficiaries nationally, according to the company. That number does not necessarily represent individuals who have coverage for both companies, executives said.
Pomelo heard about the Doula Network from patients, who reported having positive experiences with the organization. Doula care has been shown to improve maternity outcomes and health equity, particularly among Black mothers. Yet one estimate suggests only 6% of U.S. women receive doula care. Affording doulas has historically been a challenge, though demand and coverage is increasing, Pomelo argues.
“The doula network really came in to meet this need a couple of years ago and very quickly they’ve scaled,” Marta Bralic Kerns, founder and CEO of Pomelo Care, told Fierce Healthcare. “They've become the clear partner of choice for health plans.”
More than a dozen states, plus Washington, D.C., require Medicaid reimbursement for doula services. Thirty more states are taking steps toward doula reimbursement. Major employers are taking notice of doula care’s benefits, with CVS, Microsoft and Walmart all offering doula coverage.
Pomelo plans to fully integrate the Doula Network to offer a hybrid model of care. Pomelo’s model includes unlimited virtual care delivered by a multidisciplinary team made up of OBGYNs, pediatricians, midwives, nurses, dietitians, therapists and lactation experts. This team supports a patient’s existing provider. Patients may also now be paired with a community-based doula.
“The benefits of virtual is that it’s really fast access and it’s really scalable…but the benefits of in-person are during labor you want the in-person physical support as well,” Bralic Kerns said.
Patients with insurance that covers both companies as a benefit will automatically have access to the new integrated model, and the companies hope to increase payer partner overlap with the acquisition, Bralic Kerns said. Another part of the acquisition’s goal is to improve coordination of care and to share accountability for a patient.
“We really believe in team-based care…so we see this as the doulas joining the patient’s care team,” Bralic Kerns said.
Pomelo offers virtual pregnancy, postpartum and infant care to patients to help reduce their risks and improve outcomes. The startup also analyzes claims and health record data to proactively identify individual risk factors. Pomelo screens for social determinants like nutrition, housing or intimate partner violence, and refers patients to resources that they might need. It also helps them navigate their benefits.
“With a worsening maternal and infant health crisis and too many women not knowing where to turn for support, this acquisition will allow us to scale our doula network and meet rapidly increasing commercial and Medicaid demand for community-based doulas,” Elizabeth Simmons, founder and CEO of the Doula Network, said in an announcement. Simmons will now serve as the Head of Doula Network for Pomelo Care.
This month, Pomelo will present data at both the Society for Maternal-Fetal Medicine Global Congress and the American Academy of Pediatrics National Conference & Exhibition showing significant reductions in avoidable emergency room, inpatient, and NICU utilization, per the company press release.
Pomelo works with employers, as well as commercial and Medicaid plans. All of its contracts are value-based. The Doula Network has fee-for-service contracts.