Remedy Partners said it has raised $50 million of Series B backing from Bain Capital Ventures. The capital is the initial close of a round that will target between $70 million and $80 million. As part of the deal, Bain Managing Director Mike Krupka will join the board.
Remedy, a developer of bundled payment programs for government and private health insurers, will use the money to find new customers and partnerships. It had previously raised $35 million of funding from investors including Triple Tree Capital Partners.
Chairman Steve Wiggins said the company has been growing rapidly. The number of patients served by Remedy products has grown 10x in a year and the number of health organizations that use the products by almost as much.
Remedy Partners Raises $50 Million Series B Financing
Remedy-implemented bundled payment programs poised to benefit as Medicare seeks to shift up to $220 billion to value-based payments
Darien, CT, (July 23, 2015) —Remedy Partners, a developer and manager of bundled payment programs for government and private health insurers, announced today it has raised $50 million from Bain Capital Ventures. The capital will be used to support Remedy’s dramatic growth in new customers and partnerships. Bain Capital Ventures Managing Director Mike Krupka will join the Remedy Partners Board of Directors.
The funding is one of several indicators that bundled payment programs– promoted by the Affordable Care Act to help replace the traditional fee-for-service healthcare model for Medicare payments – is gaining momentum.
In bundled payment programs, a fixed price is paid for a wide range of health care services over a specified period of time, known as an “episode of care.” It is among the primary strategies being used to transition away from fee-for-service.
Since implementing its first partnership in October 2013, Remedy has live bundled payment programs in more than 1,300 healthcare provider sites, including more than 800 hospitals. Remedy’s technology, analytics, training and administrative platform supports the implementation and management of bundled payment programs at hospitals, physician groups, skilled nursing facilities and home health agencies.
The Center for Medicare & Medicaid Services (CMS) has been aggressively promoting bundled payments as a way to improve quality and reduce the cost of the federal Medicare program. CMS created the Bundled Payment for Care Improvement (BPCI) program through the Center for Medicare and Medicaid Innovation, as a voluntary demonstration program. Thousands of health care providers have entered the program.
In addition, CMS this month said it will require hospitals in 75 geographic areas, including Los Angeles and New York City, to participate in a test of bundled payments for hip and knee replacements. These surgeries are among the most common procedures that Medicare patients receive. The new program mandates participation by hospitals and is expected to further accelerate the nationwide shift towards bundled payments.
“Organizing the financing and delivery of healthcare services around the patient’s episode of care leads to greater cooperation and more successful outcomes,” said Remedy Chairman Steve Wiggins. “Bundled payments are proving to be one of the most successful methods to shift from fee-for-service toward value-based payments for healthcare services. Our software and services help healthcare organizations navigate the new world of accountable care.”
“We are fortunate to have support for this mission from knowledgeable investors,” Wiggins added.
Mike Krupka, a managing director of Bain Capital called Remedy “a transformational company” and said Remedy has become the clear leader in its field. “With Medicare hoping to shift up to $220 billion of spending toward value-based payment models, Remedy is exceptionally positioned to help the government succeed,” Krupka said.
Remedy Partners develops and manages Bundled Payment Programs in partnership with hospitals, physician groups health systems, skilled nursing facilities and home health agencies. The company’s role in a bundled payment program includes advanced analytics; care management and workflow software; on-line and on-site training programs; 24/7 telephonic nurse support services; creation and management of post-acute provider networks; and administrative services to guide and promote program success. Remedy’s largest customer is the Center for Medicare & Medicaid Services (CMS). http://www.remedypartners.com
About Bain Capital Ventures:
Bain Capital Ventures (BCV) provides seed through growth capital for companies focused on technology and technology-enabled services primarily for enterprise customers. BCV invests across sectors including infrastructure software, application software, financial technology and healthcare. Select BCV healthcare exited investments include ABILITY Network, Boston Heart Diagnostics, Liazon Liberty Dialysis and private company, MedHOK. Technology investments include BloomReach, Docusign, Gainsight, Optimizely, SurveyMonkey,TellApart and VMTurbo. As the venture capital affiliate of Bain Capital, a leading global alternative assets firm, BCV has partnered with more than 200 companies since 1984 to start, build, commercialize and grow their businesses. BCV has approximately $3 billion of assets under management and has offices in the Bay Area, New York City and Boston. Follow BCV at @BainCapVC or visit the website at www.baincapitalventures.com.