The healthcare industry shifted to an increased reliance on home healthcare as a result of the pandemic. With an ever-increasing aging population, increased life expectancy in the US, and surging hospitalization and in-facility costs, the outlook for home healthcare demand is expected to remain robust. However, coordinating home care requires targeted solutions to make the experience efficient for all stakeholders. Tomorrow Health is a technology-driven platform that’s focused on making the home healthcare experience seamless. At its core, the company has built a data-driven marketplace that matches patients with vetted home-based care suppliers based on a number of factors including insurance acceptance, location, and availability. Tomorrow Health is a fully-integrated solution that handles the end-to-end process starting with ordering to fulfillment, care execution, and billing. By serving as a single unified point of care for the many moving parts in home care, Tomorrow Health reduces the time spent by medical providers to secure homecare for their patients by 45%, reduces the time spent on ordering supplies by 60%, and reduces the cost to payors by 15% – all while improving patient outcomes.
AlleyWatch caught up with Tomorrow Health CEO and Cofounder Vijay Kedar to learn more about the business, the company’s strategic plans, latest round of funding, which brings the total funding raised to $92.5M, and much, much more…
Who were your investors and how much did you raise?
$60M Series B, led by BOND, with participation from A16Z, Obvious Ventures, Box Group, and Sound Ventures.
Tell us about the product or service that Tomorrow Health offers.
Tomorrow Health is a solution that seamlessly connects all necessary parties to make quality home-based care a reality. The company leverages technology to match 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%
What inspired the start of Tomorrow Health?
I was inspired to start Tomorrow Health after experiencing my mother’s struggles with accessing home healthcare and equipment firsthand after her discharge from the hospital following her cancer diagnosis.
How is Tomorrow Health different?
We think about adjacent models where we’re approaching the market differently.
- Traditional home-based care providers are partners to us – not competitors
- Our focus is improving not the structure of a network, but how it performs – enabling it to operate better with technology
- We’re also solving pain points for providers, home-based care providers, and patients
- From software point solutions, we’re not just focused on the e-prescribe process, but the end-to-end patient experience while empowering the suppliers through the process.
- Another differentiator for us is our best-in-class talent and culture – our people come from within and outside healthcare. Companies like Amazon, Warby Parker, Flatiron Health, Oscar, Signify Health, and Stripe.
What market does Tomorrow Health target and how big is it?
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.
What’s your business model?
Enterprise insurer partners contract with Tomorrow Health to manage patients’ home-based care across all lines of business, helping payors transition to value-based care models by introducing standards of quality; incentivizing higher quality care and enabling providers with the tools to succeed in that environment and deliver higher-value care.
Enterprise insurer partners contract with Tomorrow Health to manage patients’ home-based care across all lines of business, helping payors transition to value-based care models by introducing standards of quality; incentivizing higher quality care and enabling providers with the tools to succeed in that environment and deliver higher-value care.
We drive value by keeping patients healthy and safe at home – which is what everyone wants
What are your post-COVID office plans?
Tomorrow Health is a hybrid work environment. We have a beautiful office in NYC in TriBeCa, and also welcome remote employees to ensure we’re hiring the highest quality talent across the country.
What was the funding process like?
We kicked off the round driven by significant demand from both healthcare and technology investors. Investors were excited by the scale of the problem and market opportunity, proven traction and outcomes with enterprise customers and patients – including resounding testimonials from senior stakeholders and a transformative impact on patients, and an experienced team and strong, sustainable business model.
What factors about your business led your investors to write the check?
Ultimately, we showed investors that the company could effectively scale into new markets and partners, impacting 100x more patients with strong unit economics. Were very fortunate to be able to choose inventors that (1) aligned with our mission and long-term vision (2) support the business as we continue to grow (3) brought strong and complementary networks. Given current market conditions, we’re especially reminded how important it is to show a consistent track record of proven outcomes and value-driven to customers, repeatable growth and clear pipeline for future growth, and sustainable business model, while delivering meaningful value to stakeholders.
What are the milestones you plan to achieve in the next six months?
We’re looking forward to announcing milestone partnerships with national, regional and integrated health plans, and our continued strength of patient stories.
What advice can you offer companies in New York that do not have a fresh injection of capital in the bank?
Focus on delivering value for customers, sustainable unit economics, and preserving runway. I always believe providing transparency to your team is the best way to build trust and coalesce a team through challenging market environments.
Focus on delivering value for customers, sustainable unit economics, and preserving runway. I always believe providing transparency to your team is the best way to build trust and coalesce a team through challenging market environments.
Where do you see the company going now over the near term?
Patients face myriad obstacles in receiving life-sustaining home healthcare and equipment, with 3 in 4 patients reporting complications getting the home-based care they need. We at Tomorrow Health streamline access to such care, helping hundreds of thousands of patients transition from the hospital and manage chronic conditions.
Our mission is to restore the home as the primary point of care. We hope to do so by impacting the lives of 100s of millions of patients.
What’s your favorite restaurant in the city?
Evelina in Brooklyn.
