Main Street Health Secures $315M in Financing to Expand Presence Across 26 States

On the 8th of October 2023 in Nashville, Tennessee, USA, as reported by PRNewswire — the Largest value-based healthcare organization in the country that only serves rural areas, Main Street Health, announced today that it will be expanding into 26 states. Main Street also said that it had raised more than $315 million in new capital, which came from strategic health plans and provider partners.

Brad Smith, Chairman and CEO of Main Street Health and former Director of the Center for Medicare and Medicaid Innovation (CMMI), said, “The trust that exists between rural providers and their patients is truly unique.” “Across the country, we have seen that by partnering with local physicians and their teams to deliver high-touch, value-based care, we can improve the overall quality, cost, and experience of healthcare in rural America.”

A Health Navigator is sent to each partner primary care clinic in rural America by Main Street as a partner. The Health Navigator helps the clinic’s providers coordinate care by making sure patients get preventive screenings, calling patients to remind them to pick up their medications, setting up patients for primary care visits after they leave the hospital, and helping patients with their social determinants of health needs.

The early results of Main Street have been very good. They are as follows:

  • 42% improvement in quality Star scores
  • 23% reduction in hospitalizations
  • 9% reduction in medical costs

Owner of Family Health Center in La Grange, Texas, Dr. Thomas Borgstedte said, “Main Street has helped change the kind of care we give in our clinic.” “The Health Navigator and the data Main Street provides allow us to coordinate care for our patients in a way that we would never have been able to do otherwise.”

Main Street works with more than 900 clinics in 18 states right now, and they have plans to add eight more states by 2024. Most of the clinics Main Street works with are in towns with 3,000 to 5,000 people and have two to three providers.

As an investor for 30 years, Annie Lamont, the lead investor in the round and Managing Partner at Oak HC/FT, said, “I have never seen a company grow this quickly and with such good results.” “I think this speaks to the opportunity that exists to improve healthcare across rural America as well as the operational experience of the Main Street team.”

In this round, Main Street has investors that include Oak HC/FT and the five largest national Medicare Advantage plans, which together serve more than 74% of all Medicare Advantage members in the country. A lot of Main Street’s provider partners, like large health systems, regional hospitals, and individual primary care doctors, have also put money into the round.

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