Remedy Partners said today that it raised $50 million from Bain Capital Ventures for its bundled payments service for healthcare insurers.
Darien, Conn.-based Remedy helps insurers create and manage bundled service programs, in which a fixed price is paid for healthcare services over a period of time, known as an “episode of care.” The Affordable Care Act contains provisions designed to promote the growth of bundled care payment, as it looks to push the medical industry from a fee-for-service business model.
Just this month, the Centers for Medicare & Medicaid Services proposed to bundle reimbursement payments for hip and knee replacement procedures at more than 800 hospitals in 75 geographic areas. The payments would cover “all related items and services paid under Medicare Part A and Part B for all Medicare fee-for-service beneficiaries,” the government health insurer said.
Remedy said its programs have gone live at more than 1,300 healthcare provider sites, including more than 800 hospitals, since October 2013.
“Organizing the financing and delivery of healthcare services around the patient’s episode of care leads to greater cooperation and more successful outcomes,” chairman Steve Wiggins said in prepared remarks. “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.”
“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,” added Bain Capital Ventures managing director Mike Krupka, who’s slated to join Remedy’s board.
