Princeton-based growth equity firm Edison Partners announced on Thursday it is leading a $10 million investment in Hoboken-based Health Recovery Solutions (HRS), a provider of remote patient monitoring.
The funds will be used to accelerate Health Recovery Solutions’ go-to-market capabilities and augment its best-in-class technology platform within the $12 billion telemedicine market.
In a press release, Edison Partners said that chronic disease continues to drive up health care costs and is the leading cause of hospital readmissions. Remote patient monitoring (RPM) is becoming a fundamental tool for decreasing readmissions, improving outcomes, and reducing the overall cost of care. HRS said it provides an RPM platform that allows health systems and home care agencies to reduce hospital readmission rates by up to 80 percent while improving patient and caregiver satisfaction.
“As the U.S. health care industry shifts to a value-based care model, providers are more incentivized than ever to decrease readmissions and improve patient outcomes,” said Gregg Michaelson, partner at Edison Partners, who led the investment and will join the HRS board of directors.
“CEO Jarrett Bauer and his team have built a superior technology solution that has allowed HRS to quickly scale in a capital-efficient manner. Jarrett, along with his co-founders Rohan Udeshi and Dan Priece, are singularly focused on building the market leader and we’re thrilled to have the opportunity to help them achieve their goals,” said Michaelson.
“We’re delivering a comprehensive solution to costly chronic disease management,” said HRS Chief Executive Officer and Co-founder Jarrett Bauer. “Our partnership with Edison Partners will allow us to further accelerate toward our ultimate goal of positively impacting millions of patients who are unnecessarily readmitted to the hospital every year. We’re thrilled to partner with the Edison team as they bring health care and technology expertise along with operational capabilities to help us drive toward a premium outcome.”
The HRS software platform connects post-acute patients with clinicians and family caregivers, allowing for daily performance tracking, video visits, dietary guidance, and a host of other engagement and communication tools. Clinicians utilize the platform to track vital statistics, manage patient recovery, and intervene directly or through a family caregiver when necessary. The software is customizable with more than 40 treatment plans for conditions such as diabetes, COPD, congestive heart failure and chronic kidney disease.
The company said it has more than 140 customers across the health care provider network including recognized names such as Banner Health System, Penn Medicine at Home, Well Care Health, Northwell Health and Medstar Health. HRS was listed on the 2018 and 2019 Inc. 5000 lists of America’s fastest-growing private companies.
HRS marks the fourth health care technology investment for Edison Partners in the last three months. Additional recent investments in the sector include CapitalRx and PurpleLab. HRS is also the 49th investment in the firm’s home state of New Jersey.
Edison Partners has financed and guided more than 220 private companies since 1986. Noteworthy Healthcare IT portfolio exits include Premier Health Exchange (PHX), Dendrite, Cadient, Health Market Science and Verilogue; currentcompanies include Lincor, TrialScope and Zelis.