Home-based care startup Tomorrow Health is revamping its business model.
The company announced Thursday that it will be closing its medical supplies business to continue focusing on enabling home care through technology and other solutions that benefit its providers and health insurance partners.
Still, the company will partner with other home healthcare device (HME) suppliers — like Apria, AdaptHealth, Home Care Delivered, Lincare, and Rotech Healthcare — providing them with “scalable technology.”
“HME providers are a critical lever to shift care to the home, something that payers often overlook,” said Vijay Kedar, CEO and co-founder of Tomorrow Health, in a statement. Tomorrow Health’s technology and unique Payer positions enable end-to-end change, supporting everything from prescribing to reimbursement while empowering suppliers with valuable insights that can drive business growth and ensure positive experiences for every single stakeholder.”
New York-based Tomorrow Health has raised $92.5 million in funding since its inception in 2018. The goal is to improve the way home care is ordered, delivered and paid for. It works with a large network of providers and 125 health insurance companies and healthcare systems. It is supported by Andreessen Horowitz, BOND and Obvious Ventures, among others.
Having originally made home care an important part of the business, Tomorrow Health executives believe they have found a better way to influence the shift in care to the home. It’s doing so in part by “transforming the end-to-end process of how HME is ordered, processed and delivered to patients at scale,” according to the company.
Tomorrow Health believes that closing its own first-party HME care business will “open up new opportunities” and “remove barriers” for its network of home care providers.
The news follows after the company announced a new product specifically tailored to support providers and health plans involved in Medicaid, home and community services.
“It’s a recognition of the unique complexities that both Medicaid MCOs and care coordinators — and ultimately patients and their caregivers — face in managing home care,” Kedar told Home Health Care News last month. “This is something that we have worked to develop over the past year in collaboration with a range of stakeholders to ultimately be able to deliver and deliver a product that is truly tailored and appropriate to serve some of these key stakeholders in the Medicaid community. area to support.” .”
On the HME side, Tomorrow Health still feels like it can make a difference.
According to the company, this has reduced suppliers’ operating costs by up to 24%. It also enables the provider to communicate more seamlessly with all stakeholders involved in care, including payers and providers, through its platform.
“Our partnership with Tomorrow Health allows us to automate and dramatically scale Home Care Delivered’s world-class client onboarding process while delivering the clinical, qualitative and financial outcomes needed by patients, their healthcare providers and payers Lowell Price, Home Care Delivered’s SVP of business development and chief growth officer, said in a statement. “While there are other e-platforms on the market today that we support, none is more strategically aligned with us, both in terms of commitment and ability to deliver value-based care at DME, than Tomorrow Health.”