MINNEAPOLIS (October 13, 2021)—Lifespark, formerly Lifesprk, a provider of whole person services for seniors, has raised $20 million in a B-round to lead the nation in delivering population well-being. This round is being led by Virgo-managed fund to continue funding advancements in Lifespark's operating system and proprietary technology platform and UCare, the largest Medicare Advantage provider in Minnesota, to serve Minnesota seniors holistically with a multiproduct strategy.
"We want global risk, to be held accountable for delivering wellness, and move volume to value," explained Joel Theisen, BSN, Lifespark CEO and founder. "The less we spend on reactive care, the more we can spend on the experience. The proprietary technology we are building isn't for tech's sake but to create on-demand access and deep holistic understanding of our clients. This powerful insight combining both prescriptive and predictive analytics guides our service delivery from the current low-value, acute, reactive care mindset to one that empowers people to take control of their health."
This thinking is in line with market changes coming into view as providers shift from fee-for-service to value-based payment models.
"We know this is where the healthcare industry is heading. We also know making that shift can be challenging for health systems, payors, and providers when the right technology isn't in place," said Pooja Goel, partner for Virgo. "What we've seen from Lifespark is the art and science. They've managed to combine the medical with the social drivers of health in a meaningful way while taking aim at a national crisis of lowering healthcare spend. We believe that what they are building will set the standards for how people age in this country."
According to research sponsored by the Peter G. Peterson Foundation, health care spending is rapidly increasing at a substantial rate but produces no better—and indeed sometimes worse— outcomes. Notable factors include an aging population and rising health care prices. The Centers for Medicare & Medicaid estimate Medicare spending is expected to grow at an average annual rate of 7.6% and increased to $858.8 billion at the end of 2020.
"We also know there is tremendous waste in health care with more than $75 billion alone spent on overtreatment and low-value care," said Theisen. "Understanding where that waste exists and how to prevent it is something our tech operating system focuses heavily on. It's a blending of everything a person needs in a complete system offering seamless fulfillment of a person's Life Plan."
Theisen added, isolation is fatal. "Bringing others into our ecosystem is the only way to tackle the aging crisis and health care waste that exists. This additional infusion in our capital comes at the same time we've announced an investment from UCare, a leading Minnesota payer, to serve all seniors with more wellness and less 'sick care.' Defragmenting and aligning around payviders (payer and provider) who bring a multiproduct strategy will help deepen longitudinal relationships that deliver value."
Visit lifespark.com for more information.