Remedy Partners, a developer and manager of bundled payment programs for government and private health insurers, announced it has raised $50 million from Bain Capital Ventures during a Series B financing round. 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.
Since implementing its first partnership in October 2013, Remedy has bundled payment programs that are live in more than 1,300 healthcare provider sites, including more than 800 hospitals. Remedy’s technology, analytics, training and administrative platform support 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 voluntarily entered the program to prepare for the expected roll-out of a permanent program.
In addition, CMS this month said it would require hospitals in 75 geographic areas, including Los Angeles and New York City, to participate in a mandatory 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.
Remedy Chairman Steve Wiggins reported:
“Organizing the financing and delivery of healthcare services around the patient’s episode of care leads to greater cooperation and more successful outcomes. 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.”
Mike Krupka, a managing director of Bain Capital Ventures 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.”
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