Tomorrow Health, a home-based healthcare startup that aims to simplify the process of getting home health care supplies, closed a $60 million series B funding round, bringing its total funding to date to $92.5 million.
The oversubscribed round was led by BOND and included investments from Andreessen Horowitz, Obvious Ventures, BoxGroup and Sound Ventures. The funding will help Tomorrow Health expand partnerships with national and regional health plans, grow in new markets and invest in technology.
Tomorrow Health, which was founded in 2020, provides a platform to get home health care equipment such as CPAP machines and oxygen tanks, and coordinates the logistics between payers, insurance coverage and referring providers.
The company has partnered with more than 125 leading health plans and hospital systems across the country and matches patients and their families with home-based care suppliers, simplifies ordering and insurance processes and offers support.
Today, 1 in 4 Americans requires home-based care, and, this year, 91% of health plans are actively seeking programs to move care to the home. But a lack of infrastructure to connect and coordinate medical providers, home-based care suppliers, patients and payers has left patient care falling between the cracks.
Tomorrow Health co-founder and CEO Vijay Kedar told Fierce Healthcare that he became familiar with the fractured infrastructure of home-based care when his mother was diagnosed with stage 3 cancer and required a year of intensive care at home.
Kedar worked with nearly a dozen different home-based care providers and drove to various locations to pick up equipment, encountering many challenges along the way with little guidance to navigate the process.
Kedar also saw the challenges of home-based care from the insurer’s vantage point while working at a health insurance company.
“As a health insurer, we were incredibly motivated to transition more care outside of the four walls of the hospital to the home, but we found a number of challenges doing so across a very fragmented and subscale landscape of home-based care providers,” Kedar said. “It opened my eyes to the fact that the infrastructure to enable home-based care reliably and at scale was lacking.”
The lack of infrastructure for home-based healthcare became the vision for Tomorrow Health to provide a technology platform that could help coordinate home-based care by working with health plans at the regional and national levels to coordinate the home-based care that their members receive across medical equipment, supplies and clinical services.
Kedar said Tomorrow Health aims to restore the home as the primary place of care for patients.
Kedar said the home is already seen as a post-acute setting of care for when patients receive care in a hospital and then recover at home.
“We believe the home can also be a pre-acute setting of care,” Kedar told Fierce Healthcare. “Beyond just preventing readmission, that efficient coordination of healthcare products and services at home can actually help to prevent that first admission in the first place.”
Kedar said the focus for the new funding and for the company’s growth are to expand across the country with new health plan partners across national health plans, regional health plans and integrated systems. The company will also focus on deepening its penetration into new markets and geographies to serve a wider breadth of patients and will continue to invest in its technology platform.
In 2021, the startup scored a $25 million series A round of funding led by Andreessen Horowitz with participation from Obvious Ventures and BoxGroup.