In a move that illustrates Princeton-based Edison Partners’ continued commitment to the state of New Jersey and to New Jersey startups, the venture capital firm announced that it would be the lead stakeholder in a $10 million investment in Health Recovery Solutions (HRS), based in Hoboken.
HRS was established in 2012 by Jarrett Bauer, Rohan Udeshi and Daniel Priece, and has since grown into a market leader in remote patient monitoring. According to a release, the funds will be used to “accelerate the company’s go-to-market capabilities and augment its best-in-class technology platform within the $12 billion telemedicine market.” HRS is Edison’s 49th investment in New Jersey.
In an explanation of what the company does, an Edison statement pointed out that “chronic disease continues to drive up healthcare 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 provides an RPM platform that allows health systems and home care agencies to reduce hospital readmission rates by up to 80% while improving patient and caregiver satisfaction.”
This year, HRS landed on the Inc. list of the 5,000 fastest growing private companies, and it came in at number 10 on our list of the fastest growing private tech companies in New Jersey, with a reported 2018 revenue of $6.3 million. Bauer, the CEO, presented the startup’s origin story at a New Jersey Tech Council meeting in 2017.
Explaining Edison’s choice of HRS, Gregg Michaelson, the partner at Edison Partners who led the investment, told NJTechWeekly.com, “We have mapped the telehealth market and believe that the HRS product and business model will make it the clear market leader in the remote patient monitoring space. The founders are passionate and persistent about improving the health of millions of Americans. We believe those qualities, along with their proven strategic and tactical chops, will create another huge outcome for a New Jersey company.”
He continued, “We believe this company is unique in many ways—best product in the competitive set, very profitable unit economics, exceptional revenue growth and a founding team that desires more than just funding from a financial partner.”
In a release, Michaelson stated, “As the U.S. healthcare industry shifts to a value-based care model, providers are more incentivized than ever to decrease readmissions and improve patient outcomes.” Michaelson will join the HRS board of directors.
“We’re delivering a comprehensive solution to costly chronic disease management,” Bauer stated. “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 healthcare 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 to intervene directly or through a family caregiver when necessary. The software is customizable, with more than 40 treatment plans for conditions such as diabetes, chronic obstructive pulmonary disease (COPD), congestive heart failure and chronic kidney disease.
The company has more than 140 customers across the
healthcare provider network, including
recognized names such as Banner Health (Phoenix), Penn Medicine at Home (Philadelphia), WellCare Health Plans (Tampa), Northwell Health (Lake Success, N.Y.) and MedStar Health (Columbia, Md.).