The Series C was led by LLR Partners, with previous investor Edison Partners also participating. HRS did not disclose its fundraising total for the round, but LLR typically invests between $25 million and $200 million of equity per transaction, according to Sasank Aleti, a partner at the lower middle-market private equity firm.
“We have been studying the RPM space for a long time and were attracted to HRS’ product leadership in the category,” Aleti told Home Health Care News in an email. “HRS has created a seamless experience for its customers and end-users by integrating its proprietary software with auxiliary hardware, over 90 clinically validated care plans and high-value wrap-around services, including logistics management and care management.”
Prior to its Series C, the Hoboken, New Jersey-based HRS had raised more than $15 million over the last nine years.
The telehealth and RPM company will use the new capital to support investments in infrastructure and product development, plus sales and marketing, HRS co-founder and CEO Jarrett Bauer told HHCN. The Series C will also be used as liquidity for other early investors in HRS.
“I think this is a win for all of home care,” Bauer said. “We’re going to have more resources to go farther and longer. This is just going to help our clients out tremendously.”
As part of its business model, HRS supplies health care providers and payers with remote monitoring and telehealth tools aimed at improving patient engagement, with the ultimate goal of reducing hospital readmissions and improving clinical outcomes. Currently, HRS partners with over 220 health care organizations in all 50 states, serving nearly 235,000 patients across 90 disease conditions.
Home health and home care operators have traditionally been HRS’ main partners, according to Bauer. While they’re still core to his company’s future, HRS has recently been winning more business from health systems and payers, too.
That increased demand is partly due to the COVID-19 pandemic, which shifted all sorts of care into the home for the very first time.
“Hospital-at-home is here to stay,” Bauer said. “Everybody has ‘virtual’ as part of their strategy. Everybody has telehealth and remote monitoring as parts of their strategies.”
HRS “tripled in revenue growth last year,” he added. By the end of 2021, the company expects to be at $52 million in revenue.
Following the Series C, Aleti now joins the HRS board of directors, along with Scott Perricelli, who’s also a partner at LLR.
“LLR views the rise of telehealth — and specifically remote patient monitoring — as a trend that is here to stay,” Aleti said. “COVID can be credited with accelerating telehealth utilization. However, the long-term tailwinds of value-based care, the higher prevalence of chronic conditions and a growing number of elderly patients seeking to receive care at home all should contribute to increased adoption of HRS’ solutions in the future.”
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