Vesta Healthcare, a telehealth support provider for caregivers and care recipients, announced a $65 million growth capital round with a focus on senior populations.
Deerfield Management Company led the financing with participation from existing investors Oak HC/FT, Kaiser Permanente Ventures, Lux Capital, Generator Ventures, Nationwide, CareCentrix, Epstein Partners, and new investors, including K2 HealthVentures.
Vesta Healthcare plans to use the new funds to expand its sales, marketing, operations, and technology teams. Additionally, the funds will support the company to further develop its partnerships with home care agencies as it takes increasing clinical and financial risk for the populations they serve.
“Through this additional investment, we will be able to rapidly expand our presence as well as continue building novel care models and data-driven technology solutions for the home,” said Randy Klein, CEO of Vesta Healthcare.
Including the latest funding round, Vesta Healthcare has raised $95 million to date. The company previously raised $30 million in 2019.
The new funding will also enable the company to further grow into new geographies, launch new program offerings, and expand its ability to take on population health programs and risk contracts, the company said in a statement.
Founded in 2018, Vesta Healthcare is a digital clinical provider platform supporting high-needs members at home and connecting their caregivers’ insights to the rest of the care team. The company partners with home care agencies, health plans, and providers to create value-based population health and clinical programs that improve health outcomes and personalized engagement.
Vesta Healthcare’s Homecareist model establishes a specialized provider team who manages and coordinates in-home care between patients aging at home and their caregivers and the rest of care delivery. According to the company, its program has shown that 88% of urgent alerts can be managed and resolved in the home in partnership with caregivers, resulting in an over 30% reduction in emergency room visits and hospital admission rates.
“The past year has highlighted the critical nature of engaging caregivers in their homes as they work to keep members and loved ones safe and healthy at home. Vesta’s ‘Homecareist’ model and technology-enabled caregiver engagement have resulted in differentiated health outcomes and care for Vesta’s members,” said Julian Harris, a Partner at Deerfield.
Telehealth companies secured a record $4.3 billion VC funding during 2020. The funding amount was a 140% increase in 2020, compared to $1.8 billion raised in 2019. CirrusMD, a chat-based telehealth provider, raised $20 million in a Series C funding round recently.