RetraceHealth Raises $1M From Investors
Telemedicine and home healthcare provider RetraceHealth said it raised $1 million from Blue Cross and Blue Shield of Minnesota, HealthEast and McKesson Ventures.
The list of investors also includes a who’s-who in healthcare, including Kyle Rolfing, founder of RedBrick Health; Linda Hall, former CEO of Minute Clinic; and Doug Davenport, chief financial officer at HealthEast Care System. This could suggest a strategic investment from the east metro healthcare provider, tech.mn wrote.
CEO Thompson Aderinkomi said the money will be used to expand its reach to more patients, as well as cover expenses such as marketing, research, malpractice insurance, licensing and staffing.
RetraceHealth provides online video conferencing with nurse practitioners and in-home visits—including X-rays and labs—for a monthly fee or on an a la carte basis. The model allow for lower costs and fewer visits to a clinic or hospital.
“Everything RetraceHealth does is focused on creating a system where care makes sense for the patient,” Aderinkomi said in a statement. “Our ultimate goal is to change how primary care is financed and delivered to make it more affordable, personal and accessible to all.”
The company was founded in 2013 after Aderinkomi had to take his child to a doctor four times in one month before he was properly diagnosed with pneumonia, costing the family over $600 for what RetraceHealth says, “should have cost no more than $100.”
UPDATE: Power Moves Development and tech.mn released a video interview of Aderinkomi that details Retrace Health's story and how the cash-strapped company turned down its first investment offer because it undervalued the company and came with strict terms. The video can be viewed here.