Cityblock raises $116 million in new capital, partly to help with the acquisition of Homeward Health. Cityblock coordinates and provides care in urban settings and Homeward is focused on rural America. Cityblock has raised around $900 million, so hopefully its Blockhead investors will see a return.
Happy Health is ecstatic to raise $75 million in new capital for its home health monitoring platform, which helps manage sleep apnea and other problems. We will see how ecstatic investors end up being.
DocGo, a provider of medical transport services and "mobile" health, is acquiring Hicuity Health, which offers "virtual" care services. To show you what great investments many of these health care companies are, the acquisition is being paid for by just assuming debt, so shareholders in Hicuity will get nothing.
Hinge Health, which manages care for musculoskeletal and migraine conditions, opens the door to gastrointestinal care with a $105 million acquisition of Cylinder Health, which focuses on managing meds and other treatment for those illnesses.
If you are a health care company, you too can raise astronomical sums of capital if you claim to be part of the AI wave. Function Health demonstrates by raising $450 million to expand its offering of testing and scans as part of an expensive preventive health menu which is largely aimed at the wealthy.
Included Health wants no one to feel left out, so it is buying Firefly Health, which is attracted to the light of all that money. Included Health is yet another "virtual care" company and it has begun offering an "alternative" health plan model to employers. Firefly Health will supposedly help with this goal by bringing its "integrated" health plan to the mix. Sounds like another example of floundering companies desperate to create more traction.
Telehealth is still going strong and whenever possible the companies in the field talk about AI. Doctronic has an "AI Doctor" which you can visit and it is acquiring Summer Health, which offers text-based pediatric care, to broaden its offerings beyond adults. This could be one of those "will two weak companies make one stronger one" deals.
Speaking frankly, Candid Health looks like one of those companies we don't need in health. It claims to have new revenue cycle management software that is heavily driven by AI and will maximize providers' bills. Just what we need, more upcoding and phony coding to drive health spending even higher. In any event, the company raised a massive new capital round of $120 million to put this abomination in even more provider offices.
Health care is a big part of the economy so investment dollars tend to flow there, not always wisely. There is alot of gibberish in this press release from Pearl Health, so it is hard to figure out what this company actually does, but it is raising a new capital round of $110 million to use AI to help providers with outcomes-based care, including Medicare beneficiaries. If I can't understand what they are doing, ultimately the customers won't be able to either.
InStride Health hit the ground running, well maybe walking, as it raised $30 million in additional capital for its pediatric mental health business. Children's mental health would be just fine if we keep them away from the woke indoctrination of schools and, by the way, mental health providers.
GoHealth is another of those excessively valued health startups that was always destined to flounder and not it has filed bankruptcy and the company will be turned over to lenders. GoHealth supposedly had a sensational new way to sell Medicare Advantage plans to beneficiaries. The company had gone public so a lot of investors lost a lot of money.
Garner Health isn't gathering any accolades from me, as it raises a new round of $100 million in capital at about a $2.5 billion valuation. The company supposedly steers patients to the best (i.e., cheapest) providers. To my cynical eye just looks like another over-hyped, over-valued company.
IKS Health, a British company with a US subsidiary that offers "care enablement" and mentions AI, of course, is buying TruBridge for $557 million. TruBridge offers revenue cycle management and EHR software and services to rural and community hospitals.
Innovacer, which basically collects data on a patient from multiple sources and aggregates it, raised an astounding $275 million in new capital, supposedly at a valuation of almost $3.5 billion. The company wants to expand its use of--wait for it--artificial intelligence. There is apparently no shortage of capital, but I wonder how much is being wisely deployed.
A company called Whoop raised a ridiculous $575 million in new capital at a supposed $10 billion valuation. The press release was released on April 1, so I would like to think it is a prank, but apparently it is not. Investors have learned nothing. The company has a wearable that supposedly helps with all kinds of health issues. Wearables are the hot new fad, and it will be a fad, but hey, if people want to throw their money away on fads, God bless them.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.
The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.