Health Tech

Tomorrow Health raises $60M to get more payers on its home care coordination platform

Tomorrow Health — a platform that makes it easier for patients, providers and payers to coordinate home-based care — closed a $60 million Series B funding round on Tuesday, bringing its total funding to date to $92.5 million. The startup will use the funds to expand its partnerships with payers, grow in new markets and further develop its technology.

home care

The highly fragmented nature of the home care sector often results in delayed access and frustration for seniors hoping to age in place and patients seeking to manage their chronic conditions at home. When Tomorrow Health co-founder and CEO Vijay Kedar was coordinating his mother’s home care after she was hospitalized for a serious lung condition, he realized just how inefficient the process was. 

In response to the problem, Kedar founded Tomorrow Health in 2018. On Wednesday, the New York-based startup closed a $60 million Series B funding round, bringing its total funding to date to $92.5 million. The round was led by BOND, with participation from Andreessen Horowitz, Obvious Ventures, BoxGroup, and Sound Ventures.

Providers’ interest in alternative care settings was growing before Covid-19. The pandemic has accelerated telehealth and at-home care to an extent where there’s no denying care is expanding beyond the four walls of a hospital. In fact, most health plans are actively seeking programs to move care to the home this year, Kedar said. But that does not mean the process of arranging for home care is simple.

It is quite the opposite, according to Kedar. He said it is common for a patient to be ready for discharge but unable to leave because the medical supplies they need will not be delivered to their home in time. This delay not only interrupts a patient’s healing journey, but it also results in indirect charges that payers must shoulder. Tomorrow Health’s platform seeks to address the lack of infrastructure required to effectively connect and coordinate medical providers, home-based care suppliers, patients and payers.

The platform helps hundreds of thousands of patients transition from the hospital and manage chronic conditions by making it easier to access home care. It allows patients to buy the medical supplies and equipment they need by matching them with suppliers spanning more than 40,000 products and services. Tomorrow Health’s data-driven matching process considers quality, devices’ clinical appropriateness, insurance coverage and geography.

The startup’s platform is designed to track and manage every step of delivering at-home care, from prescription to payer billing to fulfillment, Kedar said. He said this streamlines the home care coordination process for all stakeholders, a feat he does not think any other startup is going after.

“Traditional home-based care providers are partners to us — not competitors,” Kedar said. “Our focus is improving not the structure of a network, but how it performs —  enabling it to operate better with technology.”

Tomorrow Health contracts with national, regional and provider-sponsored health plans to coordinate home care for their members through a value-based model. The startup currently has partnerships with more than 125 health plans and hospital systems. For example, it partnered with Geisinger Health Plan last year to streamline the home care coordination process for its more than 550,000 members.

The startup’s latest funding round comes amid what Kedar called an “accelerated demand from health plans and provider-sponsored plans.” Tomorrow Health will use the funds to expand its partnerships with payers, grow in new markets and further develop its technology. He also said the money will be used to support the company’s hiring push for its business development, engineering, and product and operations teams.

Photo: laflor, Getty Images