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Exclusive: Valendo Health wants to bring value to diabetes care

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Jan 30, 2024
Illustration of a glucometer with a dollar sign on the screen.

Illustration: Gabriella Turrisi/Axios

Value-based remote diabetes care startup Valendo Health debuted with $4 million in seed funding, CEO Dave Terry tells Axios exclusively.

Why it matters: Unlike rival providers, the company works directly with independent endocrinology practices, moving them toward value-based contracting.

Details: Valendo was built at health care startup builder Redesign Health.

  • Funds will fuel the company's first provider partnerships and data-focused research on Medicare spending in diabetes care.
  • Terry declined to give specifics on when Valendo will fundraise next but said the company "could potentially go out later this year or early next."

How it works: The Boston-based company works with endocrinologists to increase the number of patients they serve — and the frequency at which they serve them — by offering them remote monitoring tools such as continuous glucose monitors (CGMs).

  • The provision of virtual care is also intended to help with the triage of patients for in-person services, helping to ensure those who need in-person appointments get them in an appropriate fashion.
  • Other types of diabetes caregivers are also used in Valendo's model to help increase endocrinologists' capacity, such as certified diabetes educators, nurse practitioners and physician's assistants.
  • Once Valendo accomplishes the above at a given practice, it plans to shore up the practice's administrative and clinical data to place them into value-based specialty care contracts with payers and at-risk provider groups.

What's happening: Valendo is launching in partnership with independent providers Cecelia Health, a New York City-based virtual specialty clinic, and Advanced Metabolic Care and Research, an Escondido, California-based endocrinology practice.

The big picture: Diabetes represents a large population where a lot of management happens at the primary care level, but some research suggests people achieve better outcomes when they regularly engage with specialists.

What they're saying: After leading three other value-based specialty care companies, Terry concluded that while primary care is vital, many people see specialists when they get sick.

  • "That led me to be interested in finding ways to think about how to pay specialists differently, evaluate their performance, and create more accountability for specialty care," Terry says.

State of play: The success of remote diabetes care proved a major proof point for telehealth, with companies in the sector collecting a bolus of venture funding in recent years. For example...

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