General Catalyst is launching a digital health startup with a $25 million investment, betting that the need for home care far outweighs the challenging macroeconomic environment.
The startup, called Maribel, will be led by former Mission Health CEO Dr Ron Paulus and former Bayada Home Healthcare Chief Medical Officer Dr Adam Groff.
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The digital health funding landscape has been relatively quiet this year. The collapse of popular digital health institution Silicon Valley Bank on Friday could lead to an even tougher funding environment. But Paulus, who was a former advisor at General Catalyst, said he was confident in starting a digital health company in tough economic times thanks to his venture capital firm.
“One of the advantages of having General Catalyst as a partner is that they can become a long-term capital sponsor and invest over several phases,” says Paulus.
Maribel is the fifth company that General Catalyst has founded through its own developer program. The others are Livongo, Commure, Kayak and Homeward.
Maribel will provide a technology platform and consulting services for health systems that deliver complex home care services. “We can accommodate health systems where they are and support them, either in a turnkey way as we develop and operate the program or in a way that supports it from a perspective,” says Paulus. consulting services,” Paulus said.
Paulus said Maribel will be paid largely through clinical outcomes and performance-based financing in these home care plans. The company will use $25 million to develop the technology platform, hire employees and develop services offered with Maribel’s original partners.
Those partners are Moorestown, New Jersey-based home health company Bayada and St. Louis. Bayada CEO David Baiada said the home healthcare provider wants to expand its ability to deliver acute care at home.
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With Mercy, a network of 25 hospitals, Maribel will develop a home hospital program with a potential capacity of 200 participants.
Paulus said their partnership will not be limited to home hospital programs.
“I don’t want to be just a home-hospital company because that’s too restrictive,” says Paulus. “It bypasses many of the types of services that can be provided in the home community… our vision is much broader and [can achieve] Sustainability, which is the lower cost, higher quality, more satisfying aspect of care, is part of the overall risk base.”
The Centers for Medicare and Medicaid Services issued a public health emergency waiver in November 2020 to establish a program where in-hospital Medicare payments at home match the length of time the patient spends. Boarding. In December, those flexible payments were extended until the end of 2024 through the $1.7 trillion spending bill. After 2024, it remains unclear how home hospital plans will be reimbursed through Medicare although Paulus suggests they could be contracted as value-added clinical services.
Paulus said he will continue to work as a consultant at General Catalyst but spend most of his time with Maribel. After leading Mission Health for nine years, Paulus joined General Catalyst in October 2019. He was one of the first notable CEOs to join General Catalyst, including former Intermenez CEO Dr. Marc. Harrison in August and former Jefferson Health CEO Dr. Stephen Klasko.
This story first appeared in Digital Health Business & Technology.
