The home-based care startup Tomorrow Health is reworking its business model.
The company announced Thursday that it is closing down its medical supply business to further focus on enabling home-based care through technology and other solutions that benefit its provider and health plan partners.
Still, it will work with other home medical equipment (HME) supplier partners – such as April, AdaptHealth, Home Care Delivered, Lincare and Rotech Healthcare – and provide them with “scalable technology.”
“HME suppliers are a critical lever to shift care to the home, which is often overlooked by payers,” Tomorrow Health CEO and co-founder Vijay Kedar said in a statement.” Tomorrow Health’s technology and unique position with payers enables change end to end, supporting everything from prescription to reimbursement while arming suppliers with valuable insights that can drive business growth and ensure positive experiences for every single stakeholder.”
The New York-based Tomorrow Health has raised $92.5 million in funding since it launched in 2018. It aims to improve how home-based care is ordered, delivered and paid for. It works with a large network of providers, as well as 125 health plans and health systems. It is backed by Andreessen Horowitz, BOND and Obvious Ventures, among others.
After originally making home medical supply a key part of the business, Tomorrow Health leaders believe they have found a better way to influence care moving toward the home. In part, that is through “the transformation of the end-to-end process of how HME is ordered, processed and delivered to patients at scale,” according to the company.
Closing its own first-party HME supply business, Tomorrow Health believes, will “unlock new opportunities” and “remove barriers” for its home-based care provider network.
The news comes on the heels of the company announcing a new product specifically tailored to help providers and health plans operating in Medicaid and home- and community-based services.
“It’s a recognition of the unique complexities that are faced by both Medicaid MCOs as well as care coordinators – and ultimately patients and their caregivers – in navigating home-based care,” Kedar told Home Health Care News last month. “This is something that we have worked to develop over the last year in partnership with a range of stakeholders to ultimately be able to deploy and deliver a product that is really tailor-made and suited to support some of these key stakeholders in the Medicaid space.”
On the HME side, Tomorrow Health still feels like it can make an impact.
It has reduced supplier operating expenses by up to 24%, according to the company. It also allows the supplier to communicate more seamlessly with all stakeholders involved with care, including payers and providers, through its platform.
“Our partnership with Tomorrow Health enables us to automate and dramatically scale Home Care Delivered’s best-in-class customer onboarding process, while simultaneously allowing us to drive the clinical, quality, and financial outcomes that are needed by patients, their healthcare providers, and payers,” Lowell Price, SVP of business development and chief growth officer of Home Care Delivered, said in a statement. “While there are other e-platforms in the market today that we support, none are more strategically aligned to us in both commitment and capability to delivering value-based care in DME than Tomorrow Health.”
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