#United States #Columbia, Maryland #CVS Health #AbsoluteCare #Kinderhook

AbsoluteCare Secures $135 Million Funding to Enhance Health Care Delivery

AbsoluteCare, a prominent name in value-based integrated health care, has recently announced securing a significant investment of $135 million. This funding, obtained through equity financing, comes from four notable investors: Kinderhook Industries, CVS Health Ventures, Pacific Life, and Lexington Partners. This substantial financial boost positions AbsoluteCare to optimize its operations further and expand its reach into new markets and populations.

Aiming for Excellence in Care Delivery

The infusion of capital reflects a growing confidence in AbsoluteCare's innovative approach to health management. Chris Michalik, Managing Director at Kinderhook, commented on the company’s achievements and growth, stating, "AbsoluteCare is setting a new standard for value-based care, delivering comprehensive health care to high-acuity Medicaid and Medicare members." With this funding, the company can continue scaling its successful care model, impacting the lives of patients across various regions of the country.

AbsoluteCare employs the Beyond Medicine™ model, which focuses on improving health outcomes for Medicaid and Medicare members by utilizing a holistic approach. This model includes support in social determinants of health, accompanied by primary and urgent care services, behavioral health care, and an integrated pharmacy system. The goal is to cater to complex health needs effectively and compassionately.

Positive Impact on Health Outcomes

Vijay Patel, Vice President and Managing Partner at CVS Health Ventures, noted, “AbsoluteCare is delivering a unique, concierge-level of care to individuals who need it most, live within their communities.” This unique care model aligns with CVS Health’s commitment to enhancing health outcomes, particularly for vulnerable populations. The results speak volumes, showcasing a 34% reduction in emergency department visits and a staggering 20-30% reduction in total care costs. Furthermore, there is a notable engagement rate of 75-80% among members, who typically contend with multiple health diagnoses and medications.

Commitment to Improvement and Expansion

Mike Radu, the CEO of AbsoluteCare, highlighted the significance of this investment by stating, "This investment reflects deep confidence in AbsoluteCare's concierge, PCP-led care model and strengthens our ability to deliver outstanding health outcomes for our members and payer partners." This reflects AbsoluteCare's determination to innovate and expand its services across various communities, striving to meet the complex needs of its target population.

The company has been dedicated to serving marginalized communities for over 25 years, and through this investment, it aims to deepen its commitment to improving quality outcomes. By reducing avoidable healthcare utilization and costs, AbsoluteCare is demonstrating tangible benefits to its members and stakeholders.

Community-Centric Care Model

AbsoluteCare utilizes comprehensive care centers strategically located within urban communities, putting them closer to the populations they serve. This allows them to extend their care into the community by visiting members directly in their homes and rounding in hospitals, which enhances cooperation among healthcare professionals.

These integrated efforts highlight AbsoluteCare's revolutionary approach within the healthcare landscape, where it operates with a unique focus on high-risk populations that constitute a significant amount of unnecessary utilization and costs. This strategy not only redefines the delivery of health services but also positions AbsoluteCare as a pioneer in practical, value-based healthcare solutions.

About the Investors and Future Outlook

Founded in 2003, Kinderhook Industries has raised over $8.5 billion in capital, focusing on growth-oriented investments, particularly in healthcare services. Meanwhile, CVS Health Ventures is committed to enhancing healthcare accessibility and affordability through early-stage and growth-stage investments.

As AbsoluteCare continues to evolve and enhance its services, this substantial backing opens new avenues for innovation and community engagement in health care delivery, showcasing the company's dedication to transforming lives through comprehensive, patient-centered care.

For more insights into AbsoluteCare and its commitment to innovative health management, visit AbsoluteCare's official website.