Tomorrow Health Raises $60 Million Series B to Scale Quality Home-Based Care
Tomorrow Health, a home-based care company, closed a $60 million Series B round, bringing its total funding to date to $92.5 million. The oversubscribed round was led by BOND, with participation from Andreessen Horowitz, Obvious Ventures, BoxGroup, and Sound Ventures. The capital will fuel Tomorrow Health’s expanding partnerships with national and regional health plans, growth in new markets, and investment in its market-leading technology.
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. However, the lack of infrastructure required to effectively connect and coordinate medical providers, home-based care suppliers, patients and payors has left patient care falling between the cracks. Home-based care is currently fragmented, confusing and expensive, costing the healthcare system billions of dollars annually. Care provided in-home:
- Represents 6.3% of the total $3.1 trillion healthcare spend, according to JAMA
- Includes 32,000+ unique providers of equipment, services, and supplies, yet lacks quality standards and infrastructure
- Presents friction, as 72% of patients report difficulty accessing home-based care, with 1 in 10 patients reporting readmissions, medical complications or emergency care due to home-based care delays, driving up the total cost of care.
Tomorrow Health addresses these challenges with a technology solution that seamlessly connects all necessary parties to make quality home-based care a reality. The company matches patients with suppliers spanning 40,000+ products and services, and considers quality, specialization, insurance coverage and geography in its technology-driven matching process. As a fully integrated solution, 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% less time spent by medical providers ordering and managing home-based care
- 60% less time spent by suppliers processing orders, reducing their operating costs
- 15%+ savings for payors on home-based care spend, with increased quality and improved patient outcomes
- 97% of patients start care on time, compared with an industry average of 50%
“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 Chief Executive Officer 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.”
Tomorrow Health is accelerating to 317% ARR growth year-over-year, from 2021 to 2022. The 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, 5,000+ referring providers and 180+ 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.