Tomorrow Health Raises $60 Million in New Funding
The latest Series B round will help company that provides technology solutions that helps coordinate patients’ transition into the homecare setting.
Tomorrow Health, a company that offers tools to help connect physicians, patients, plans, payers and HME providers to smooth the transition for patients to the homecare setting, has closed a $60 million Series B round, bringing its total funding to $92.5 million to date.
The oversubscribed round was led by BOND, with participation from Andreessen Horowitz, Obvious Ventures, BoxGroup, and Sound Ventures. The capital will help Tomorrow Health expand partnerships with national and regional health plans, and drive growth in new markets, and investment in its market-leading technology.
In a public statement, Tomorrow Health underscored that one in four Americans today requires home-based care and 91 percent of health plans are actively seeking programs to move care to the home this year. It also noted that home-based care:
- Represents 6.3 percent of the total $3.1 trillion healthcare spend, according to JAMA
- Includes more than 32,000 unique providers of equipment, services, and supplies, yet lacks quality standards and infrastructure
- Presents friction, as 72 percent of patients report difficulty accessing home-based care, with one in 10 patients reporting readmissions, medical complications or emergency care due to home-based care delays, driving up the total cost of care.
That friction large stems from there being no infrastructure required to connect and coordinate medical providers, home-based care suppliers, patients and payers, according to Tomorrow Health. This has left patient care falling between the cracks and creating unnecessary expense.
Tomorrow Health offers a technology solution that connects all necessary parties to match patients with suppliers spanning more than 40,000 products and services. The system considers quality, specialization, insurance coverage and geography in its technology-driven matching process.
Tomorrow Health tracks and manages every step of delivering at-home care, from prescription to insurer billing to fulfillment, streamlining processes for every stakeholder, including:
- 45 percent less time spent by medical providers ordering and managing home-based care
- 60 percent less time spent by suppliers processing orders, reducing their operating costs
- More than 15 percent savings for payors on home-based care spend, with increased quality and improved patient outcomes
- 97 percent of patients start care on time, compared with an industry average of 50 percent
“For patients navigating the transition home from surgery or managing a chronic condition, lack of access to critical medical equipment, supplies and services can lead to catastrophic outcomes for their care,” said Vijay Kedar, co-founder and CEO of Tomorrow Health. “At Tomorrow Health, we endeavor to restore the home as the patient's primary place of care by seamlessly coordinating the resources they need to heal at home.”
Listen to a recent HME Business interview with Kedar:
A Surging Market
Tomorrow Health is accelerating to 317% ARR growth year-over-year, from 2021 to 2022. The homecare marketplace covers millions of Americans through partnerships with insurers and home-based care suppliers, and a national footprint encompassing tens of thousands of providers and hospital systems. Insurers across all lines of business contract with Tomorrow Health to coordinate home-based care for their members through a value-based model that incentivizes high-quality patient outcomes.
“Home-based healthcare represents a $195 billion market opportunity. Labor shortages, demographic shifts and evolving patient preferences are helping fuel demand for high-quality home-based care,” said BOND general partner Noah Knauf. “Tomorrow Health has the team, technology, and deep industry expertise to make quality care at home — and at scale — a reality. Countless patients are already experiencing the value that Tomorrow Health has brought to market.”
In Spring 2021, Geisinger Health Plan (GHP), a regional insurer in Pennsylvania, partnered with Tomorrow Health to coordinate home-based care for its 550,000 members, more than 5,000 referring providers and more than180 DME suppliers to enable more efficient order placement, supplier routing and end-to-end tracking and visibility. To date, the solution has resulted in a 9.5 patient satisfaction rating, generated substantial savings, and reduced phone calls to GHP by 60,000.
Kedar founded Tomorrow Health following his efforts to navigate his mother’s care at home for a life-threatening lung condition she had developed while battling cancer. This personal experience, coupled with his prior work leading care management strategy as an executive at Oscar Health, inspired him to drive change in home-based care. He has assembled a leadership team that combines healthcare innovators with accomplished technology and operations leaders and includes executives with prior experience spanning roles at Amazon, Flatiron Health, Stripe, Oscar, Warby Parker, and Signify Health. The company is headquartered in NYC, with plans to expand its team with business development, engineering, product and operations hires across the country.