Our Investment in MedArrive
We are excited to announce that 7wireVentures has invested in MedArrive through the company’s $25M Series A round of financing. MedArrive is a technology-enabled care delivery solution that brings affordable at-home care to vulnerable populations across the country. We are pleased to support the company alongside a syndicate of like-minded investors, including Section 32, Kleiner Perkins, Define Ventures, Leaps by Bayer, and Redesign Health, and advance the organization’s broader mission of improving people’s lives by bringing more humanity to healthcare in the home.
Founded in June 2020, MedArrive identified the clear need for a solution that bridges the virtual care gaps inadvertently created in a digital world. Through a nationwide network of EMTs, Paramedics, RNs, NPs, and Community Health Workers, MedArrive enables diagnoses, patient evaluations, and care services efficiently and effectively, all from the comfort of a consumer’s home. Through MedArrive, consumers receive expanded access to on-demand and scheduled high quality care while reducing costs for health plan partners.
“Telemedicine has significantly improved access to quality care for patients across the country, especially during the pandemic, but virtual visits are not always enough,” said Alyssa Jaffee, Partner at 7wireVentures. “Sometimes patients need hands-on care in the form of diagnostics, in-person treatments, or simply through the comfort of having a care team member with them in-person. We’re proud to partner with the MedArrive team at such a pivotal and rapid growth moment for the company and are eager to support the team as they work to improve the lives of individuals across the country.”
At the helm of the organization is Dan Trigub, CEO and Co-founder of MedArrive. Dan is an established, senior technology leader and sales executive with extensive domain knowledge in growing and scaling healthcare technology platforms and marketplaces from his prior work at Uber Health and Lyft Health. The 7wireVentures team has known Dan for years, having followed his success from his days at Uber Health until now.
“Now more than ever, we need technology and human-enabled care models to work together and bring care out of the hospital and into the home,” said Trigub. “As MedArrive works to bring convenience, personalization, and empathy back into healthcare for communities across the country, I could not be more excited to partner with the 7wireVentures team. The team’s extensive expertise in scaling high-growth digital health companies will be crucial as MedArrive enters its next phase of growth.”
MedArrive is revolutionizing how consumers, health systems, and health plans think about the boundaries of at-home care delivery. The company has built a robust technology platform to seamlessly manage the scheduling and routing for at-home care delivery. Through a convenient and proactive at-home care model, MedArrive supports Emergency Department (ED) avoidance (e.g., urgent care, chronic condition management, readmission prevention, and preoperative care), HEDIS gap closures, risk assessments, and routine care services such as vaccinations.
Why We Invested:
Heightened Demand for At-Home Care Services
COVID-19 has served as a catalyst for numerous fundamental shifts in how consumers interact with the health system. Most prominently, the pivot towards receiving care in the home has motivated all health stakeholders to partner with solutions that are transforming care delivery. Additionally, the country’s aging population and rising prevalence of chronic disease is further driving the need for home-based care. As such, the market for in-home care, telehealth, and chronic disease management is expected to grow, with an estimated CAGR of >7% through 2025.
Given this growing demand, regulators have stepped up to support a broader shift towards innovative care delivery models. Specifically, the Centers for Medicare & Medicaid Services have sought to incentivize care delivery at the right time and place through the agency’s Primacy Care First program and Emergency Triage, Treat, and Transport initiative. Both programs are aimed at incentivizing care in the home by offering innovative payment structures that focus on enhancing care for patients with complex chronic needs and improving health outcomes through collaboration across care settings, disciplines, and provider types. MedArrive is well positioned to take advantage of these market tailwinds and regulatory dynamics to deliver much needed care services through the company’s convenient and coordinated at-home care model.
Unnecessary and Expensive ED Visits Burden the Healthcare System
Despite efforts to reduce the significant percentage of ED visits deemed unnecessary each year, overall utilization has not experienced a meaningful decline over the past decade. As one of the highest-cost sites of care – averaging over 12 times the cost of out-patient care – visits to the ED represent $32B in unnecessary medical spend annually. In similar fashion, high hospital readmission rates create financial pressures across the healthcare system, exceeding $26B in spend. As such, health plans and risk bearing providers are acutely interested in strategies that reduce ED spend by shifting members to more cost-efficient sites of care, including the home. Through MedArrive’s urgent care, chronic condition management, readmission prevention, transitional care, and preoperative care services, the company provides longitudinal and acute care that can replace or prevent future ED visits.
Growing Provider Shortage and Underutilized EMS Personnel
The U.S. is expected to experience a shortage of up to 124K physicians by 2034 across primary care and specialty conditions, exacerbating the already difficult challenge of accessing quality care. Conversely, EMS providers are widely underutilized today and generally only receive meaningful reimbursement for emergency patient transports. These providers lack the funding and financial incentives to meaningfully invest in approaches that would support increased utilization of their services. MedArrive taps into the highly capable workforce of over 250K EMS professionals working across the nation and helps realign market incentives by allowing users to benefit from the full scope of EMS professionals’ medical training, while providing Field Providers with opportunities to earn supplemental income and expand their daily responsibilities. By delivering much needed care in the home, MedArrive Field Providers help stem the provider access challenges healthcare faces today.
At 7wireVentures, we invest in solutions that empower an Informed Connected Healthcare Consumer. Through their tech-enabled care delivery model, MedArrive enables consumers to access medical support when and where they need it, squarely fitting within this thesis. MedArrive has already served thousands of members and will continue to evolve and scale its offerings to expand the company’s ability to deliver high quality care in the comfort of consumers’ homes. The team is well positioned to achieve its mission of delivering a new healthcare experience focused on convenience, reliability, and safety. We are excited to welcome the company to the 7wireVentures portfolio.