MedArrive, a startup co-founded by former Uber Health executive Dan Trigub, picked up $25 million in fresh funding to expand its network and build out its technology.
Launched just a year ago, MedArrive grew rapidly in 2020 by doubling the size of its team and expanding into new states. The startup facilitated thousands of home visits, according to the company.
MedArrive is a care management platform that enables healthcare providers and payers to extend services into the home.
The series A funding round was led by Section 32 with participation from new investors 7wireVentures and Leaps by Bayer as well as existing investors Define Ventures, Kleiner Perkins and Redesign Health.
MedArrive will use the new financing to expand its network to additional states and invest heavily in its product and platform to maximize impact.
Trigub, who serves as MedArrive's CEO, told Fierce Healthcare the company also plans to scale up its team.
"This is an opportunity to continue to build our team. We're proud of the team we've assembled across product engineering, sales and operations," he said. "We see ourselves as an operating system on behalf of payers and providers, and this allows us to continue to expand our coverage in more markets than where we are today and grow our partnerships."
MedArrive connects payers and providers to a network of EMTs, paramedics and other skilled healthcare workers to extend care into the home. As the pandemic continues to accelerate the adoption of virtual health—with 40% of U.S. consumers planning to use telehealth moving forward—MedArrive is bridging the virtual care gap by combining physician-led telemedicine with hands-on care from the comfort and safety of the patient’s home, according to the company.
Key services include episodic care such as vaccinations and monoclonal antibody treatments along with Healthcare Effectiveness Data and Information Set gap closure and risk assessment to identify and address patients’ preventive care needs.
MedArrive plans to expand into new uses cases for chronic care management to help prevent emergency department visits.
Forrester predicts that the number of hospitals that deliver care at home will triple in 2022. The pandemic was a major catalyst for shifting acute hospital care into patients’ homes, given the need to prevent the spread of COVID-19 and limit surge capacity.
The trend of shifting more health services to patients' homes is a major tailwind for companies like MedArrive.
In 2019, national spending on home health care reached a high of $113.5 billion, a 40% increase from 2013, according to the most recent data from the Centers for Medicare & Medicaid Services.
"Fundamentally, we think the future of care is in the home. There is a large market opportunity a lot of white space; this is not winner take all," he said. "The hospital of the future will be the ER, OR and ICU, and the vast majority of services will move into the home."
He noted that MedArrive has a unique approach by connecting through payers and providers rather than operating as direct-to-consumer and utilizes a unique workforce by tapping the skills of EMS professionals.
MedArrive taps into a capable workforce of EMS professionals so they can leverage the full scope of their training, earn supplemental income and diversify their day-to-day responsibilities. At the same time, patients using MedArrive are able to access trusted medical expertise from the safety of their homes and within their existing health systems.
MedArrive has established nearly a dozen partnerships with large national and regional health plans including SCAN Health Plan, Clover Health, Bright HealthCare and Molina Healthcare as well as accountable care organizations and government entities such as the Los Angeles Department of Health. Through these partnerships, the company is currently conducting home visits across California, Florida, New Jersey, North Carolina and Texas.
As part of the financing, Andy Harrison, managing partner at Section 32, will join MedArrive’s board of directors, and Alyssa Jaffee, partner at 7wireVentures, will join as a board observer.
“The pandemic has exacerbated long-standing inefficiencies in the medical system and accelerated the transformation of healthcare delivery,” said Harrison in a statement. “Over the past year, MedArrive has emerged as a leader in redefining how—and where—care is delivered."