Hospitals, Startups

Direct primary care startup R-Health grows with practice acquisition

The deal marks R-Health's first acquisition.

hand shake deal mergerR-Health, a direct primary care practice using longer physician visits supplemented by patient engagement tools to improve outcomes, has acquired the Advanced Comprehensive Care Organization, according to a company statement. ACCO has served as a collaboration partner with R-Health for the past year. The deal marks R-Health’s first acquisition and adds family medicine, internal medicine doctors and pediatricians to its business for a total of 170 primary care providers.

ACCO got its start in 2010 and came out of the Southeastern Pennsylvania Chronic Care Initiative developed by the Governor’s Office of Health Care Reform, according to the statement.

In a phone interview with Co-founder and CEO Mason Reiner, said since the company’s start in 2013 it has found an increasing receptivity to its approach from payers, both commercial and Medicare Advantage plans, although declined to identify payers it works with by name. “Payers are trying to shift reimbursement to value-based care.”

Reiner said when it initially partnered with ACCO the goal was not to acquire the business but in subsequent months it seemed to be a good fit. R-Health will integrate members of ACCO’s management team into its business, but declined to disclose financial details of the transaction.

Referencing a technology component of its business, he said it views its approach as telehealth 2.0. It uses virtual visits to augment the relationship between its physicians and patients. Rather than use a service that provides access to random physicians, patients set up virtual visits with their own physicians. “It’s a much more effective clinical tool. Payers are starting to see that as well.”

Starting this year, R-Health began licensing a health coach software program from Twine Health in Boston. The service is designed to help what it refers to as “rising risk” patients, to help them get one or two chronic conditions under control. Reiner said it views technology as fostering an ongoing relationship between physicians and patients.

Looking ahead, Reiner articulated a few goals on his To Do list for 2016. He said it expects to grow substantially with primary care practices partnering with it. He also expects the company to expand its payer network and for third-party administrators to integrate more value-based care options for self-funded employers.

Photo: Flickr user s_falkow

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