Springtide

In November 2020, Springtide announced a Series A financing of $18.1 million. Springtide is an an interdisciplinary multi-site practice treating children with autism spectrum disorder. The Company’s in-center care experience provides a coordinated, tech-enabled wrap-around for families who want their children to get all of their care in one setting.

Curation Health

In October 2020, Curation Health announced a Series A round financing. Curation Health is a clinical decision support platform designed to assist providers and health plans in navigating the transition from fee-for-service to value-based care. 

Somatus

In June 2020, Somatus announced a Series C round financing of $64 million. Focused on value-based kidney care, Somatus partners with leading health plans, health systems, and nephrology and primary care groups to provide integrated care for patients with or at risk of developing kidney disease.

LetsGetChecked

In May 2020, LetsGetChecked announced a Series C round financing of $70 million. LetsGetChecked is a health insights company that allows consumers direct access to a wide range of testing options and clinical services from home. By combining health data and diagnostic results, LetsGetChecked provides rich health insights to enable better healthcare decision-making, empowering people to take an active role in their health.

Ready Responders

In March 2020, Ready Responders announced a Series B round financing of $48 million. Ready Responders is a home-based care company that provides urgent care, care transitions, and community-based care management for high-cost/high-need patients leveraging a combination of field-based EMTs, paramedics and RNs supported by NPs and MDs via ipad/telehealth.

RubiconMD

In March 2020, RubiconMD announced an $18 million Series C financing led by Deerfield. The Company is a digital tele-consult service for primary care physicians seeking consults from specialists. Through its platform, RubiconMD enables the remote exchange of insights between clinicians that eliminates unnecessary referrals and services, reduces patient wait time and travel burdens, and allows primary care physicians to practice at the top of their license.

Deerfield Contributes Insights to Peer-Reviewed Study on Access to Life-Saving Drug, Buprenorphine, Examining Growth and Distribution of Waivered Providers

Despite Evidence Showing the Opioid Crisis Disproportionately Affects Rural Areas, Prescriber Growth There Remains Considerably Slower

Despite Evidence Showing the Opioid Crisis Disproportionately Affects Rural Areas, Prescriber Growth There Remains Considerably Slower 

While there has been an uptick in the number of U.S. clinicians having waivers to prescribe the potentially life-saving drug, buprenorphine, the total number of waivered prescribers in 2017 still represented fewer than 10 percent of all primary care providers, found a report published online in the January 7 issue of the Annals of Internal Medicine.

Moreover, although rural communities have been shown to be disproportionately affected by the opioid epidemic, the growth in the number of providers having this required certification there remains strikingly low, compared to more urban areas. Authors from the RAND Corporation suggest a need for more targeted efforts to increase access to the medication.

To assess the growth in buprenorphine-waivered providers by region and demographics, the investigators leveraged insights from analysis performed by the Deerfield Institute.

Tapping population estimates from the 2010 U.S. census and total physicians per capita, the researchers calculated the total number of waivered providers per 100,000 from 2007 to 2017. Statistics from the Census Bureau were also used to determine per-capita sociodemographic characteristics.

Over the decade studied, the researchers found that the number of waivered providers, in general, increased from 3.80 to 17.29 per 100,000 persons. Growth rate of waivered providers was markedly slower in small, nonmetropolitan areas, as it was in communities with lower levels of education.

The Food and Drug Administration approved buprenorphine for treating opioid dependency in 2002. According to Kaiser Health News, once physicians secure the waiver, they can prescribe buprenorphine in a range of settings, including primary care offices, community hospitals and correctional facilities. Compared with methadone, Buprenorphine is less likely to result in fatal overdoses.

The federal government is undertaking a number of efforts to increase the amount of buprenorphine prescribers.

More details on the research may be found here: Annals of Internal Medicine.

The authors of the paper are Ryan K. McBain, PhD, MPH, Andrew Dick, PhD of the RAND Corporation in Boston, Massachusetts and Mark Sorbero, MS, and Bradley D. Stein, MD, PhD of the RAND Corporation in Pittsburgh, Pennsylvania.

Vesta Healthcare

In January 2020, Vesta Healthcare announced a $30 million Series A financing co-led by Deerfield. The Company is a 24/7 technology and clinical services organization dedicated to supporting caregivers and connecting their insights to the rest of the care team. Vesta Healthcare identifies the need for additional support in the home and provides 24/7 telehealth support for caregivers and care recipients, with a focus on high-need, frail senior populations. The Vesta program partners with home care, health plans and providers to create value-based population health programs that emphasize clinical quality, improved health outcomes and personalized engagement.

Shifting Care to the Home

“The Doctor Will See You Now…In Your Home.”

After well over a century during which the majority of care delivery shifted from the home to hospitals, clinics, and nursing homes, we are increasingly witnessing a gradual reversal of this trend. Fueled by a combination of new technology, the rising cost of care in other settings, and personal preferences for the relative convenience and safety of the home, many would argue that this deinstitutionalization of care is long overdue.

Telehealth

While the adoption curve for telehealth has been less compelling than many health care futurists anticipated, a growing percentage of Americans—now at 8 percent—have tried telehealth at least once, and an even larger percentage has expressed openness to considering it in the future. And while millennials have tried telehealth at almost 3 times the rate of the general population, its potential impact on improving quality and reducing cost may be even greater for seniors, who leverage telehealth for different purposes, such as assistance with medication adherence.

Remote Monitoring

From digital glucometers, scales, pulse oximeters, and blood pressure cuffs to Alexa devices with health care focused “skills,” a range of technologies has made it possible to better manage a number of chronic conditions in the home, including diabetes, congestive heart failure, and hypertension. Efforts to titrate medications for diabetes and hypertension that previously took weeks can be achieved, at times, in days, because of the much greater volume and frequency of data that can be collected with digitally enabled devices combined with telehealth, enabling clinicians to titrate these medicines much more efficiently than the “start at this dose, and see me back in a week” approach.
Recently, United Health Care announced the acquisition of Vivify, a remote monitoring company that leases to providers tablets connected to Bluetooth enabled devices that allow them to monitor and intervene as patients’ health conditions evolve in the home. Given the massive number of care delivery assets that it has accumulated—from primary care practices to hospitalist groups to ambulatory surgical centers, United clearly sees a wide range of use cases for leveraging remote monitoring as yet another tool to move more care out of the hospital “box” as a cost control and quality improvement mechanism.

New Payment Models

For commercially insured patients, a number of companies have taken pages from the historic doctor house call model and combined them with GPS-enabled routing protocols, compact, next generation house call kits (which can include a range of diagnostic and lab collection equipment), and clinicians trained to provide a “white glove” level of primary care and urgent care service in the home.

For patients insured by Medicare Advantage plans, a broader range of companies have expanded to provide home-based primary care or to wrap a range of services around patients’ existing primary care relationships. Some individuals served by these plans are relatively healthy, but seek the convenience of home-based care, similar to the commercial population. There is also a subset of socially and medically complex, high-cost patients covered by Medicare Advantage and Medicaid managed care plans who receive their care in the home in part because it may be challenging for them to leave the home for physical, psychological, or economic reasons. Home-based care models have been shown to improve quality and reduce costs for these patients by reducing ED visits, hospitalizations, and hospital readmissions. Given their efficacy in this regard, these companies have contracted with health plans and risk-bearing provider organizations to receive incentive or shared-savings payments that hold them accountable for their performance at reducing or slowing the growth in the total cost of care while meeting pre-defined quality metrics.

Hospital At Home

Leveraging a combination of telehealth, remote monitoring tools, and in home clinicians (ranging from nurses to physicians, depending on the model), some investor-backed companies and academic institutions are taking the shift in the site of care to the home to its inevitable end-state—the delivery of hospital level care in the home. These companies work with providers and plans to provide care for common conditions like community acquired pneumonia, mild to moderate congestive heart failure, urinary tract infections, and cellulitis that are low-margin DRGs for busy hospitals. In exchange, these hospitals have the ability to care for sicker patients who actually need inpatient or intensive care enough to warrant the higher costs and associated risks of being temporarily housed inside of the hospital “box,” such as opportunistic infections. Hospital at home has been deployed at scale in some European countries for over a decade, and while the uptake has been much slower in the U.S., there is clearly growing interest and momentum in this space and a recognition that it simply has to be one of the features of a future-state health system.

Conclusion

Even if the broader shift to urgent and acute care in the home follows a similarly slow rate of adoption to the one that has been observed in telehealth, over the next 10-15 years, technology-enabled care in the home will become fully mainstream, and the idea of going to clinics or the hospital for many forms of routine care will seem outdated, if not absurd. This shift will force some tough choices, particularly at smaller, community hospitals that may find it challenging to stay afloat without the volume that has sustained the capital-intensive boxes that are modern hospitals. While it may seem counter-intuitive, the shift to the home actually has the potential to create access issues for more complex care where an inpatient stay is required in areas where the reimbursement is not adjusted sufficiently to enable community hospitals that are too big to qualify for critical access hospital status and financing to survive. Overcoming these and other unintended consequences of the shift to the home will require focus and attention, but the positive impact on quality, cost, and the patient experience cannot be understated.

Dr. Harris is a partner on the health care services and technology teams at Deerfield.

Deerfield Management Brings Together Scientists, Entrepreneurs and Leading Companies to Form the New York-Based Healthcare Innovation Campus

$635 million in real estate and multi-disciplinary laboratory infrastructure will combine with multi-billion dollar investments in research to transform the battle against disease

NEW YORK, NY, September 26, 2019—In a major move, Deerfield Management Company, L.P.  is investing $635 million to create a transformative life sciences campus in New York City, designed to integrate the capabilities of innovators from academia, government, industry and the not-for-profit sectors to tackle unmet needs in healthcare. Deerfield additionally announced that it intends to commit more than $2 billion in research and seed funding by 2030 to develop much-needed new and innovative medicines and treatment solutions.  Deerfield expects this world-class infrastructure and funding to contribute to the prevention, cure or management of dozens of still deadly and debilitating diseases.  

As the foundation of this bold undertaking, Deerfield has acquired the 345 Park Avenue South property, which boasts more than 300,000 square feet. The site, designated a NYCLifeSci campus, will bring together scientists, entrepreneurs and leading organizations from around the world to work shoulder-to-shoulder to conceive of and develop new treatments and better ways to prevent and defeat disease. The campus will provide turnkey laboratories, and engineering and computing space, as well as other amenities and supportive services.  

“We are proud to be part of a community of people in New York who strive to save and extend lives. Creating an environment in which innovative thinking, ground-breaking advances in scientific discovery and where the development of new paradigms of patient care will occur every day is tremendously exciting,” said James Flynn, Managing Partner of Deerfield.  

“We are thrilled that our partnership with Deerfield will not only create quality jobs for New Yorkers but will also help provide a home for emerging companies to develop breakthrough scientific discoveries. New York City already has the best research institutions in the world. By investing in this Life Sciences campus to bring new lab space and programming for healthcare and early-stage biotech companies, we can strengthen the City’s position as a global leader in life sciences,” said NYCEDC President & CEO James Patchett.

The $540 million in financing for the acquisition and renovation of this world-class facility was led by Blackstone Real Estate, which has been a strong supporter of life sciences.  

Nadeem Meghji, Senior Managing Director, Head of Real Estate Americas at Blackstone said, “We are thrilled to finance this important project, which will advance life sciences research in New York City. With our investment in BioMed Realty, and elsewhere across our businesses, life sciences is among our highest priority investment sectors. We look forward to continuing to support the growing demand for research and innovation.”

The building construction and programming is being backed by the New York City Economic Development Corporation and Industrial Development Agency. It is expected to be in move-in ready condition for Deerfield and other innovators in healthcare by early 2021.

Due to obstacles, including a lack of capital and siloed approaches, promising new therapies and improvements in care management frequently fail to make it to patients. In addition to leveraging the value of public and private organizations in developing solutions, the Deerfield innovation campus will pursue all forms of technology, including digital, medical device and biotherapeutic approaches.  

“Many leaders have come together to build this incredible ecosystem, capable of accelerating the fight against disease. This campus should create the ideal backdrop to advance innovation,” said Alex Karnal, Partner and Portfolio Manager at Deerfield. “We are grateful to our partners, including the New York City Economic Development Corporation and Blackstone, as without them, this ambitious project might not have been possible.”

Having proven its ability to mobilize innovators in this space, MATTER, a healthcare focused incubator, in collaboration with Deerfield, will be supporting startups of all stages within the innovation campus.  MATTER has developed extensive specialized programs to train C-suite executives in the early stages of their career and to introduce young companies to established organizations for mentorship, collaboration and potential acquisition.  Combined with Deerfield’s operating support capabilities which extends to legal, finance, information technology, human resources, and market research, among other skillsets, companies formed within the campus will have unparalleled access to capabilities of the highest quality at low cost.

“Deerfield’s expertise and resources, combined with MATTER’s capabilities and experience, will create a healthcare and life sciences campus unlike any other,” said MATTER CEO Steven Collens. “We are thrilled to be a part of this endeavor to help entrepreneurs and innovators develop technologies and solutions that will improve the healthcare experience.”

Along with new educational programming being developed—and to complement the services provided by MATTER—Deerfield also announced that it will be growing its existing Deerfield LifeSci NYC Fellows and Break into the Boardroom programs. Deerfield additionally introduced a new initiative, Women in Science, focused on training women on how to commercialize their potentially lifesaving discoveries and create companies. The investment company has a rich history of developing and leading programs supporting diversity.

About Deerfield

Deerfield is an investment management firm committed to advancing healthcare through investment, information and philanthropy.

For more information, please visit www.deerfield.com

Contacts

Deerfield Management Company
Karen Heidelberger, 212-551-1600
[email protected]