Investment of $135 Million Secured for Comprehensive Healthcare Provision by AbsoluteCare
In a significant move to enhance value-based care, AbsoluteCare, a healthcare provider specialising in complex Medicaid and Medicare members, has secured a $135 million investment from a group of investors including Kinderhook Industries, CVS Health Ventures, Pacific Life, and Lexington Partners [1]. This funding will be primarily used to expand AbsoluteCare's footprint across the US, deepen services in existing markets, and scale its integrated value-based care model [3][4].
The investment aligns with Kinderhook's commitment to improve health outcomes for vulnerable populations [1]. Vijay Patel, Vice President and Managing Partner at CVS Health Ventures, expressed confidence in AbsoluteCare's concierge, PCP-led care model, stating that it sets a new standard for value-based care and improves patient lives across the country [2].
AbsoluteCare's expansion plan includes growing their comprehensive care centers, expanding home-based, virtual, and center-based care offerings, and continuing to implement and scale their Beyond Medicine™ care model [1][4]. This model integrates medical, behavioral, social, and pharmacy care while intensely addressing social determinants of health such as housing, food security, and community support [2][3].
The investment aims to expand AbsoluteCare's reach and deepen its presence in new communities. Mike Radu, CEO of AbsoluteCare, emphasised the complexity of value-based care in Medicaid but is committed to expanding it [2]. AbsoluteCare currently operates in multiple states and partners with about 15 health plans and managed care organisations; the investment will help increase this presence and deepen services in existing locations like their Baltimore center, which was recently expanded [2].
The funding will also support growth into new markets and serve new member populations, particularly focusing on vulnerable and chronically complex Medicaid and Medicare members [1][3]. AbsoluteCare aims to reduce avoidable hospital visits and costs, achieving a 34% drop in ED visits, 20-30% lower total costs, and 75-80% member engagement [2].
Chris Michalik, Managing Director at Kinderhook, supports AbsoluteCare's innovative care model for vulnerable populations, while AbsoluteCare's care model focuses on improving health outcomes for vulnerable populations and delivering outstanding health outcomes for its members and payer partners [1].
References: [1] AbsoluteCare. (2021). Press Release: AbsoluteCare Secures $135 Million in Growth Capital to Expand its Integrated Value-Based Care Model. Retrieved from https://www.businesswire.com/news/home/20210721005376/en/AbsoluteCare-Secures-135-Million-in-Growth-Capital-to-Expand-its-Integrated-Value-Based-Care-Model [2] American Health & Drug Benefits. (2021). AbsoluteCare Expands Baltimore Center to Serve More Patients. Retrieved from https://www.ahdbnews.com/absolutecare-expands-baltimore-center-to-serve-more-patients/ [3] Healthcare Informatics. (2021). AbsoluteCare Secures $135 Million to Expand Value-Based Care Services. Retrieved from https://www.healthcare-informatics.com/news-item/absolutecare-secures-135-million-to-expand-value-based-care-services [4] Managed Healthcare Executive. (2021). AbsoluteCare Secures $135 Million to Expand Value-Based Care Services. Retrieved from https://www.managedhealthcareexecutive.com/news/absolutecare-secures-135-million-to-expand-value-based-care-services
The investment from Kinderhook Industries and others will support AbsoluteCare's growth in integrating science-based medical care with health-and-wellness services that address social determinants of health. The expansion of AbsoluteCare's care model aims to improve health outcomes for vulnerable populations and deliver outstanding results for its members and payer partners.
