Value-based care company Main Street Health is charting an expansion into eight additional states as it banks more than $315 million in new capital.
Main Street Health focuses exclusively in rural communities and partners with primary care clinics in these regions by placing a health navigator in each facility. The navigator then assists with care coordination, including reaching out to patients about preventive screenings, contacting them with medication reminders, scheduling primary care visits following a hospital discharge and providing support for social needs.
The company currently operates in 18 states by partnering with more than 900 clinics. The expansion brings its total footprint to 26 states. The average clinic working with Main Street Health is based in a town with between 3,000 and 5,000 people and includes 2.5 providers, according to an announcement.
"The trust that exists between rural providers and their patients is truly unique," said Brad Smith, CEO of Main Street Health and former director of the Center for Medicare and Medicaid Innovation, in the release. "Across the country, we have seen that by partnering with local physicians and their teams to deliver high-touch, value-based care, we can improve the overall quality, cost, and experience of healthcare in rural America."
Main Street launched in 2021 and since then it has logged a 42% increase in quality star scores as well as a 23% reduction in hospitalizations. It's also reduced medical costs by 9%.
Investors in the company's funding round include Oak HC/FT as well as five of the largest national Medicare Advantage plans, collectively covering 74% of that population. The investment also includes backing from many of its provider partners, according to Main Street.
"In my 30 years of investing, I have never seen a company successfully scale this quickly with outcomes this strong," said Annie Lamont, lead investor in the round and managing partner at Oak HC/FT. "I think this speaks to the opportunity that exists to improve healthcare across rural America as well as the operational experience of the Main Street team."