If there was still any debate about the flavor of the month in the digital health VC club, primary care enablement company Vytalize Health just settled it with its $100M Series C round.
Primary care enablement is the name of the game 2023. In the last few weeks alone, Aledade acquired Curia, Pearl raised $75M, and Privia launched new ACOs in Connecticut, North Carolina, and Delaware.
Vytalize is now adding to that momentum with a nine figure funding round less than a year after raising its $53M Series B. The company got its start as a Medicare-focused primary care practice in 2014, but has since vertically integrated to combine a risk-bearing entity with an in-home clinic model that supports other clinics with their transition to value-based care.
- The Vytalize platform’s feature list includes all the usual suspects: patient data analytics, practice management tools, enrollment support, and finance solutions.
- Vytalize’s biggest differentiator is that it equips its clients with a virtual and in-home clinic that helps manage high-risk populations outside of the office setting – a task made easier due to the acquisition of patient communication company MedPilot in 2021.
The influx of capital will help Vytalize integrate a wider network downstream from its primary care partners (hospitals, specialty networks, ancillary providers), while also establishing relationships with more Medicare Advantage and commercial plans.
- Vytalize currently partners with 400 practices delivering care to more than 250k senior patients. Roughly two-thirds of these are small practices, with the remaining third mostly larger provider orgs.
- The funding will also help Vytalize keep ahead of any growing pains. It now operates in 36 states, up from 16 during its last raise in April 2022.
The Takeaway
Decisions made at the primary care level have a huge impact on care quality and costs given how much downstream utilization is directed by PCPs. Plenty of startups have sprung up to help providers improve these decisions while being reimbursed for their success, but Vytalize is looking to carve out a niche as a novel type of ACO with its own virtual / in-home clinic to help deliver better patient outcomes in the white space between appointments.
