🐪 It’s Hump Day, Health Techies, and we’re nearly done with the first week of August.
Situational awareness: Signify Health is exploring its options — including a sale — 18 months after New Mountain Capital went public and six months after Erin learned it had acquired Caravan Health for a whopping $250 million.
In the thrust to decentralize healthcare, virtual cardiac care is the last digital frontier in healthcare, Harsh Vathsangam, CEO of Moving Analytics says Erin.
Why is this important: Remote heart health management represents a growing sub-sector of the digital health industry that is attracting interest from venture capitalists and private investors.
Driving the news: As digital tools for remote patient monitoring become increasingly sophisticated, investors see opportunities to better tackle a long underserved (but sizable) market for virtual cardiac care.
Details: Moving Analytics raised $20 million in Series A funding earlier this summer, and other players raking in dollars include…
- Story Health, which raised $22 million in a Series A funding round in February, co-led by Northpond Ventures and B Capital Group.
- Hello Heart, which raised $70 million in Series D funding in May, led by Stripes Growth Equity.
- Cleerly, who raised $192m in a “hearty” Series C round last month in a round joined by Peter Thiel.
How it works: Moving Analytics contracts with health plans as a network provider and works with surgery centers and intensive care units to refer patients to its services.
- The company focuses most of its efforts on value-based care organizations such as Allegheny Health Network and Kaiser Permanente.
By the numbers: To date, Moving Analytics has served 5,000 patients.
- “There are 3.5 million people who have had a serious cardiac event such as a heart attack and all of them need follow-up care,” says Vathsangam. “But many don’t get it because of access issues.”
State of play: As HMOs and PPOs increasingly recognize cardiac care as a broad area of expense, specialty practices — including cardiac clinics — are getting a bigger share of reimbursement, Vathsangam says.
- The first wave of digital health tackled the industry’s low-hanging fruits, he says, by tracking basic metrics like steps, sleep and general activity.
- The next wave was care for employers, which largely focused on mental health, weight loss and musculoskeletal disorders.
- Now comes the flood of digital health startups targeting specialties like cardiac – which Vathsangam welcomes. “There’s plenty of room for multiple businesses here,” he says. “Not everyone will cover everyone geographically.”
Rollback: The COVID pandemic has propelled telehealth across specialties, but Vathsangam remembers a time when virtual and remote care was not a priority.
- Before the pandemic, Vathsangam showcased his company’s all-virtual approach to heart health at a cardiac board meeting – and was laughed out of the room.
- “It was definitely a different world,” recalls Vathsangam.
To note : Sarah learned yesterday that PE is also getting in on the action as Pivotal Healthcare Partners prepares for the sale.