DispatchHealth has secured an additional $200 million in series D financing less than one year after closing a $135.8 million series C round.
The funding deal was led by Tiger Global with previous investors Humana, Alta Partners, Echo Health Ventures, Oak HC/FT and Questa Capital funding the remainder of the round.
The at-home health care startup officially reached unicorn status as the latest investment brings the company’s total funding to more than $417 million and raises its valuation to $1.7 billion, according to the company.
DispatchHealth will use the funding to expand its platform for in-home medical care to a total of 100 markets and ensure its advanced care line of service is widely available in the U.S., the company said.
The company currently serves 19 markets across 12 states and provided care to more than 170,000 patients in 2020.
Emergency room physician Mark Prather, M.D., and his partner Kevin Riddleberger launched DispatchHealth in 2013 to combine mobile technology with an old-school service: the house call.
DispatchHealth sends emergency-care-trained medical teams to patients' homes armed with mobile blood-work labs, IV fluids, nebulizers and most of the standard equipment found in emergency rooms to diagnose and treat patients.
It offers qualified patients a substitution for a hospital stay by providing an advanced level of care in the home, including 24/7 physician coverage with remote monitoring, an emergency call button and daily visits from DispatchHealth’s medical team, including bedside nursing.
The company says it will generate more than $2 billion in medical cost savings by 2023. The company has developed a platform that integrates an array of in-home care services, including on-demand, high-acuity care that substitutes an avoidable emergency room visit, 30-day episodes that substitute for a hospital stay and a marketplace to coordinate ancillary services.
In-home health care is a booming market, and the company has attracted big-name investors and health system partners.
The company teamed up with insurance giant and investor Humana to provide members with access to hospital-level care in the home. The agreement will provide members living with multiple chronic conditions—such as cellulitis, kidney and urinary tract infections, chronic obstructive pulmonary disease, heart failure and many others—an opportunity to be treated safely at home and thereby avoid hospital visits.
“We’ve created the most complete platform that solves all aspects of delivering health care to the home including clinical logistics, care coordination and the delivery of caring medical professionals, all while improving health outcomes and lowering costs,” Prather said. “We anticipate the care continuum to continue to move into the home and we expect our platform to enable the movement of that $140 billion marketplace.”
The company’s model of in-home care, which aligns the payer, provider and patient, has proven to be vital during the COVID-19 pandemic.
“DispatchHealth has established itself as the most comprehensive provider of internet-enabled in-home healthcare in the U.S. and is well-positioned to continue improving access to quality, convenient care,” said Scott Shleifer, partner at Tiger Global. “DispatchHealth's model is accelerating the shift to at-home care and we’re excited to back the leader in a large, underpenetrated market.”
The startup also provides additional services such as pharmacy and meal deliveries, physical and respiratory therapy and imaging services as well as at-home extended care and services to treat simple to complex injuries and illnesses.