ConcertoCare scored a $105 million series B funding to scale its care model to provide comprehensive health services to more seniors with unmet health and social needs in their homes.
ConcertoCare is a tech-enabled, risk-based integrated care company that provides palliative care, home-based primary care, PACE (Programs of All-Inclusive Care for the Elderly) and programs to address social determinants of health. The company currently serves seniors in eight states across the country.
The series B round was led by Wells Fargo Strategic Capital. The funding round also includes investment from Obvious Ventures, Vast Ventures, the Schusterman Family Foundation, SteelSky Ventures, Pennington Partners and returning investor Deerfield Management.
The company has raised $149.5 million in equity funding to date.
Concerto also announced Thursday it picked up Crown Health, a home-based primary care practice serving the Pacific Northwest. With the acquisition, Concerto will accelerate its growth and impact on clinical outcomes and the lives of seniors throughout the region, according to the company.
Financial terms of the deal were not disclosed.
Last year, in-home care providers ConcertoHealth and Perfect Health merged under the name ConcertoCare.
RELATED: JPM 2022: Key industry partners funnel Medically Home another $110M to deliver acute care at home
ConcertoCare focuses on providing integrated care for seniors using a proprietary technology platform, Patient 3D, to analyze patient data and identify social needs, formulate care plans and drive quality improvement. The company deploys an interdisciplinary care team made up of physicians, nurses, pharmacists, health coaches, behavioralists and social workers that are available to seniors in person and virtually to meet both their medical and social needs, whether that is managing a chronic condition or helping them access nutritious meals.
“Our mission at ConcertoCare is to keep the country’s most medically and socially complex seniors and other adults healthy and in their homes for as long as possible, and out of the emergency department and the hospital, while simultaneously empowering them to live their best lives,” said Julian Harris, M.D., chairman and CEO of ConcertoCare.
“This commitment from our new and existing investment partners enables us to continue innovating, growing, and improving health outcomes and quality of life for these vulnerable patients who are too often failed by the traditional American healthcare system, a situation that is frequently exacerbated by health inequities," Harris said.
The company says it combines technology with a human-first approach. Along with its data analytics and decision support platform, ConcertoCare teams also use a range of connected devices, and the data they generate, to help people manage their conditions.
ConcertoCare works with a variety of payers, including Medicare Advantage, Medicare-Medicaid plans, and Centers for Medicare & Medicaid Services (CMS) value-based care programs, and can deliver care alongside a patient’s current primary care physician or serve as the provider of record, according to the company.
RELATED: On the heels of going public, DocGo aims to expand mobile medical services in the U.S. and overseas
Thirty-nine percent of Medicare enrollees have four or more chronic conditions such as diabetes, heart disease, Alzheimer’s, and chronic kidney disease. Many of these patients have undertreated behavioral conditions and unmet social needs like unstable housing, food insecurity and lack of access to transportation. These complex patients represent a disproportionate amount of spending; less than 5% of the U.S. population accounted for half of healthcare expenditures in 2018, ConcertoCare executives said.
According to the company, 88% of seniors would prefer to receive care in their home.
ConcertoCare is banking on a tech-enabled in-home care model that offer all-inclusive care to seniors in value-based care models as a way to address seniors' healthcare and social needs while improving outcomes across care quality, patient experience and cost.
The trend of shifting more health services to patients' homes is a major tailwind for companies like ConcertoCare. Home health care spending reached $123.7 billion in 2020, a 9.5% increase over $113 billion in 2019, according to the most recent data from CMS.
At-home medical services is a fast-growing and competitive market with companies like Heal and Dispatch Health. Amazon also plays in this market with Amazon Care, which offers virtual care services as well as in-home care.
RELATED: DispatchHealth brings in $200M to scale up in-home medical care
The COVID-19 pandemic also was a major catalyst for shifting acute hospital care into patients’ homes. Home-based acute care programs have also attracted big investment dollars. Medically Home has hauled in $275 million in funding while Contessa, a fellow home recovery care services and technology company, was bought out by Amedisys for $250 million last summer.
Analysts at Forrester predict the number of hospital-at-home providers will triple in the next year or two.
Investors backing ConcertoCare say the company's full-stack approach to improving outcomes for seniors and its leadership team give it an advantage in the market.
Aniq Rahman, managing partner at Vast Ventures, noted Harris' unique background as a primary care physician, a senior health policymaker, a payer and provider executive, a repeat entrepreneur and an investor.
"These roles and his own personal experience with homebound elderly loved ones have positioned him well to lead ConcertoCare. He has also assembled one of the most impressive management teams we have ever seen, and they all share the same deep sense of mission and focus on redefining the way that care is delivered in America for patients with complex care needs," Rahman said.