Vytalize Health, a leading provider of value-based health care, has agreed to acquire MedPilot, a Clevelnd-based digital health platform.
The acquisition brings Vytalize an end-to-end patient engagement capability to manage its 65,000 Medicare patients and $1 billion of medical spending. Together, the combined companies aim to transform the $250 billion independent primary care provider Medicare market.1
The transaction has been approved by both companies’ Boards of Directors subject to shareholder approval and is expected to close in the coming days.
MedPilot had raised $3.6 million in venture funding. In its most recent round in February 2020, it raised $1.5 million from JumpStart, Jon Pinney, North Coast Angel Fund, Valley Growth Ventures, Wavemaker Partners and Hudson River Capital Partners.
MedPilot has helped more than 1 million patients and demonstrated a 97% patient satisfaction score. MedPilot's proprietary engagement engine personalizes outreach based on various patient characteristics and then uses machine learning to optimize communications between the healthcare provider and patient.
Vytalize Health's acquisition of MedPilot enables them to offer their growing Medicare population a powerful solution for last-mile patient engagement. With more than $20M in investment going into the combined company and 800% year-over-year growth for the last two years, Vytalize is poised to achieve breakout leadership in the value-based care delivery space for Medicare patients.
"As we grew our ACO and began enhancing our infrastructure for Medicare's Direct Contracting program, our vertically integrated care delivery system needed a solution for last-mile patient engagement," said Vytalize CEO Faris Ghawi. "We couldn't have asked for a better technology and team to fill this need. It's been a pleasure to work together, and we are thrilled to deploy many more solutions through this platform to improve the patient experience and health outcomes while lowering healthcare costs."
More than 35 MedPilot employees will join Vytalize Health following the acquisition. Vytalize plans to continue to invest in MedPilot's hometown of Cleveland due to its strong employee talent pool and healthcare ecosystem. MedPilot's founders will also join Vytalize's senior executive leadership team. These include:
- Jacob Myers, CEO, will join Vytalize as Chief Innovation Officer
- Nathan Spoden, COO, will become Vytalize's Chief Product Officer
- Matt Buder Shapiro, Chief Marketing Officer, will retain his title
"It didn't take long working with Vytalize to see that our companies coming together was a clear 1+1=3 scenario," said MedPilot CEO Jake Myers. "I'm happy for the MedPilot employees, investors, and the city of Cleveland, as we all earned this win."
Vytalize has raised more than $17M from investors including KittyHawk Ventures and Hudson River Capital Partners to bolster the company's network of 600 primary care providers across 14 states. It continues to build its next generation of functionality that will enable Vytalize to engage patients further and ensure they receive extraordinary and comprehensive care.