Home care company MedArrive raised $8 million in new funding, which it will use to further grow its platform, the company announced Tuesday.
New York City-based MedArrive cares for patients in their homes and provides services including chronic condition management, transitional care and urgent care. It works with several payers, including Medicaid plans such as Molina Healthcare and Superior HealthPlan.
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The $8 million funding was led by Cobalt Ventures, a subsidiary of Blue Cross and Blue Shield of Kansas City. The funding follows a $25 million series A round led by Section 32 announced in November 2021 (which included participation from 7wireVentures and Leaps by Bayer). In total, MedArrive has raised $40.5 million since it was founded in 2020.
Cobalt Ventures chose to invest in MedArrive due to its work in advancing healthcare access and reducing costs, said David Eichler, managing partner of the investor.
“MedArrive has quickly become a leader in delivering healthcare at home solutions with a unique platform and agile workforce that helps lower cost of care for health plans while building trust, improving access to care and driving better outcomes for their members,” Eichler said in a news release.
With the funding, MedArrive will grow its team, as well as improve on its product and technology, said Dan Trigub, CEO and co-founder of the company.
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The TSX Venture Exchange has a strong history of helping early-stage health and life sciences companies raise patient capital for research and development.
“This capital really allows us to build out our multidisciplinary care team,” Trigub said in an interview. “Really, it helps us with our clinical operations. Then last but not least, it’ll help us continue to build our product and our technical team. We are a service business powered by tech, and our technologies can always get better around logistics, routing, scheduling, enhancing our capabilities there.”
Looking forward, MedArrive aims to serve as much of the Medicaid and dual eligible population as possible, as well as further expand its services, Trigub added. These services include maternal health, he said.
“Maternal health is becoming a top of mind challenge for payers today,” Trigub said. “When we think about births in our country, over 40% of births are Medicaid births. Maternal death rates are only increasing, increasing dramatically over the last year and even more so for our Medicaid population. We want to continue to build out longitudinal care programs for maternal health and OB medicine in the home.”
The funding news follows a recent partnership between MedArrive and virtual maternal health company Ouma Health, which was announced last month. In December, the company also announced a partnership with virtual behavioral health company Brave Health to serve Superior HealthPlan Medicaid members.
Other home care companies include DispatchHealth and Medically Home.
Photo: Kiwis, Getty Images
