Locus Health completes $4M in funding
Locus Health, which makes remote patient care management programs, completed a $4 million funding round at the end of January. Its software is connected with services that allow clinicians to interact with patients at home.
The University of Virginia Health System was an initial investor in Locus Health and held an ownership stake before this funding round. At UVA, Locus Health has enrolled more than 80% of Medicare patients eligible for the program, with a 90% compliance rate and a 96% patient satisfaction rate.
“The cost of readmission to the patient is an overlooked factor,” Andy Archer, co-founder and senior vice president, told McKnight's. “The most vulnerable are often the most at risk for readmission and often have significant economic or psycho-social challenges complicating their care.”
UVA also reported a 40% reduction in readmissions over a two-year period. The primary source for the data is remote monitoring devices in the home, and discharge-related information collected about patients (e.g. follow-up appointments) when they are enrolled and monitoring begins, Archer said.
Locus Health now supports all Medicare readmission penalty conditions at UVA, including heart failure, total joint replacement, chronic obstructive pulmonary disease and pneumonia.
While the initial focus was around Medicare's 30-day readmission penalty, Locus Health is expanding its vision: Philadelphia's Rothman Institute is working with the company to develop an integrated patient navigation program, spanning the entire episode of care for the joint replacement population.
“It's a natural extension,” Archer said of looking at joint replacements. He also added skilled nursing facilities are part of the solution around chronic care management.
“Medicare and others are willing to reimburse where there is a benefit to the payer and, of course, what it comes back to, which is what is in the best interest of the patient.”