Vesta Healthcare has closed a $65 million Series C funding round with new debt financing. The company aims to become an all-important partner to home care providers across the country.
New York-based Vesta Healthcare provides medical partnership and supervision to those that already have a presence in the home — home care agencies, family caregivers and others.
“The way that our business model works is that we partner with groups that go into the home,” Vesta Healthcare CEO Randy Klein told Home Health Care News. “They refer patients to us, for whom they’re seeking additional clinical support for. We provide support, supervision, oversight of them, and help them stay medically stable and avoid unnecessary hospitalizations. Then we participate in health plan networks as essentially an internal medicine group.”
Currently, Vesta Healthcare focuses on older adults with chronic conditions and functional limitations, typically supported by formal or informal home care. The company serves over 50,000 people.
The equity round was led by RA Capital Management, with participation from Oak HC/FT, Chrysalis Ventures, CareCentrix/Walgreens, Nationwide, Kaiser Permanente Ventures, Lux Capital, Generator Ventures, Deerfield Management and others.
Meanwhile, the debt financing came from Horizon Technology Finance Corporation, an affiliate of Monroe Capital.
This latest round of funding will be earmarked to accelerate the growth of Vesta Healthcare.
“We’re going to use the primary equity to support the growth of the business, in particular, supporting our expansion of new geographies and new partners that are referring patients to us,” Klein said.
Klein originally started Vesta Healthcare because he felt caregivers were largely overlooked.
“Home care aides and family caregivers are the most important overlooked aspect of the delivery system,” he said. “They spend more time and have more access than almost any other provider. The idea was that if we could engage with home carriers and caregivers, we could unlock a very powerful resource within the delivery system that could, ultimately, help patients, improve caregiving and create triple A savings and outcomes for the system at large.”
With Vesta Healthcare, the goal was to bring together home care and clinical care.
Klein believes that the company’s biggest growth barrier is the speed at which it can onboard support.
“Part of that growth is making sure that we have the ability to support the referral volume that we have — investing in staff, systems, technologies, processes,” he said.
However, the company has been experiencing positive momentum.
“We’re in the fortunate position that, as people increasingly understand what we do, they’re like, ‘Oh, that would actually be really helpful,’” Klein said. “We’re getting a pretty good referral volume. I’m very pleased to say that we’re getting pretty good partnership interest. Now we have to scale it up.”
Scaling up means becoming a nationally capable partner for providers, health plans and others, Klein noted.
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