CareHarmonya virtual care coordination startup, is on a mission to help hospitals deliver more value-based care.
This mission received a 15 million dollars thrust of through a Series A funding round. Maverick Ventures led this round with participation from Nashville Capital Network. The company will use its new influx of capital to drive development of its platform and accelerate hiring.
Because value-based care incentivizes providers to focus on quality of care, the shift to these care models requires them to make care decisions based on rich data. That’s why investors and providers alike are paying attention to data-driven firms like CareHarmony. For example, value-based care startups CareBridge and Aledade grossed $140 million and $123 million respectively in June.
In its press release, CareHarmony pointed out that federal programs like Medicare Shared Savings Program obligate high-revenue hospitals and health systems to embrace risk-insufficient contracting on ever-shorter timelines.
Founded in 2015, Brentwood, Tennessee-based CareHarmony was created to disrupt the existing “data-driven worldview,” said Gokul Mohan, the company’s co-founder and CEO. By this, he means that providers often base the care they provide on episodic treatments, rather than considering other data that can create a more holistic picture of each patient. He said CareHarmony is challenging that paradigm by using machine learning on new data sets — which include clinical, claims and social patient data — to increase the scalability of care teams.
By applying machine learning algorithms to these datasets, CareHarmony provides recommendations for care teams to assign targeted interventions based on patient profiles. This model is designed to ensure that clinicians can provide the right care to the right patient at the right time at scale. Mohan added that it allows patients to be treated as unique individuals and receive a “truly personalized path” through the healthcare ecosystem.
Many providers try to “hack” care coordination solutions into their EMRs, resulting in a highly manual process with unstructured data and limited population-level visibility, according to Mohan.
“Simply put – it doesn’t scale,” he said. “With our CareBlocks platform, it’s a complete paradigm shift to focus on new data sets that simply didn’t exist before. Thus, completing an EMR appointment is not the end of the patient journey, but only the beginning.”
CareHarmony partners with hospitals and health systems that use risk-based contracts or other value-based arrangements. More than 40 hospitals and health systems in more than 20 states are customers, according to Mohan. He claimed that over the past four years, CareHarmony customers participating in the Medicare Shared Savings Program have achieved shared savings 95% of the time, including a 100% success rate in the last year of implementation. The company bills its customers on a per-patient-per-month basis.
Pitchbook currently values CareHarmony at approximately $71 million. As the shift to value-based care continues, we’ll just have to watch if that number grows and if CareHarmony can differentiate itself from its competitors, which include MD revolution and Indicator light health.
Photo: Liubomyr Vorona, Getty Images