Trella Health – a post-acute analytics and metrics firm – has closed on a “significant” funding round, the company announced Tuesday. Financial details were not disclosed.
The round was led by Cressey & Company LP, a private investment firm focused on health care services and information technology businesses. Cressey & Company has also invested in the research firm Home Care Pulse and the home health technology platform HHAeXchange.
“Trella’s top priority is to grow its employee base, with the goal of doubling in size by the end of 2022, in order to continue innovating our product offerings,” Trella Health CEO Scott Tapp told Home Health Care News in an email. “This rapid growth will allow us to advance as a company and expand the resources we provide to our customers.”
Founded in 2015 and based in Atlanta, Trella Health provides health care organizations – including direct-contracting entities (DCEs), accountable care organizations (ACOs) and post-acute care providers – with market intelligence to enhance growth and performance.
In addition to Cressey & Company, Panoramic Ventures – previously known as BIP Capital – participated in the funding round.
“With our extensive claims data, we plan to expand into additional markets that need market visibility to improve performance and succeed with the transition to value-based care,” Tapp continued.
Contextually, the investment in Trella comes as demand for home health, hospice and home care services skyrockets. As providers in those settings have drawn more interest, so have the companies that support them.
Besides Trella, for example, AlayaCare closed on a $185 million round earlier this year. The training platform CareAcademy also raised $9.5 million in a funding round last year.
Trella Health’s backers are bullish on the company’s ability to help providers transition into a value-based health care environment in the U.S.
Tapp said that the additional funding will not only help bolster Trella’s current capabilities, but also allow it to expand its services to far more providers across the country.
“We’re thrilled to partner with Trella,” Dave Rogero, a partner at Cressey & Company, said in a press release. “They have built an exceptional company that sits at the intersection of health care’s transition to value-based care and the industry’s need for actionable data to improve quality and outcomes. We look forward to working with Trella and Panoramic to accelerate Trella’s expansion plans across new products, end markets, strategic acquisitions and partnerships.”
Trella believes it will be able to capitalize off of the current tailwinds behind the home health industry.
Specifically, it believes that it can provide home health agencies with the right insights regarding which patients stand to benefit from home health services.
“Trella can provide these agencies with the insights they need regarding what patients are leaving the hospital and are seeking out their care services, as well as procedures taking place in outpatient, where patients’ care instructions will direct them to home health,” Tapp said.
As the home health market evolves, agencies are going to have to continue adjusting to more risk-based contracts, which is an effort that the company believes it can help spearhead, he noted.
“Market transparency will be key as the market evolves and disrupts the normal revenue procedure, and agencies adjust from volume of services rendered to the value of the care provided,” Tapp said. “As CMS pushes more providers into risk-based contracts, Trella assists these organizations by giving them the ability to evaluate providers, referral relationships and [where] risk-bearing entities are sending their patients.”
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