February 17, 2022
Happy Friday eve, Health Tech readers!
Situational awareness: Teladoc Health announced the launch of Chronic Care Complete, a management program for individuals.
1 big thing: ConcertoCare covers its home bases
ConcertoCare plays at the intersection of value-based care and in-home care, aligning the company with two popular health care trends. And that placement fueled its recent $105 million Series B funding.
Why it matters: Despite the investor frenzy behind both trends, it's early days for both and very much TBD which models will stick.
- Wells Fargo Strategic Capital, which led the January round, believes ConcertoCare's approach gives it an edge in maximizing access to home care and navigating that uncertain future.
- ConcertoCare’s model “allows it to be agnostic to who the payer is,” whether that’s MA, Medicare, a CMS value-based care program, or dual-eligibles, Julian Harris, CEO of ConcertoCare, tells Sarah.
- ConcertoCare’s three businesses engage with patients differently but focus on value-based care to older, complex patients and adults with unmet social needs in the home.
- Public companies in these sectors continue to see massive volatility.
Between the lines: While the compression of public market multiples hasn’t fully flushed through the private markets, Robert Rein of WFSC says ConcertoCare’s breadth of offerings is appealing because it puts it in a position to reallocate efforts and resources as needed.
- “We don’t know at this stage of the investment which of the three divisions, if not all three, will resonate most,” adds WFSC managing director Rodney Altman.
The three businesses:
- ConcertoCare Partners provides additional wrap-around at-home care services for those that have PCPs.
- In-home Primary Care Provider provides in-home primary care in-person and virtually for those without PCPs.
- ConcertoPACE (Program of All-Inclusive Care for the Elderly) is an alternative to nursing programs, providing care to individuals that wish to remain in the home.
Catch up fast: ConcertoCare's $105 million Series B round brought its total funding to date to ~$150 million, according to Crunchbase.
- Obvious Ventures, Vast Ventures, The Schusterman Family Foundation, SteelSky Ventures, Pennington Partners, and returning investor Deerfield Management joined WFSC.
- ConcertoCare simultaneously acquired Crown Health, a home-based primary care practice serving the Pacific Northwest.
The bottom line: The home and fee-for-value are dominating the thinking behind which investors are placing their bets, but everyone is taking a slightly different approach. Only time will tell who the winners and losers are.