Let’s Help Make Chronic Care ≠ Chronic Costs

Here’s one thing everyone can agree on: healthcare costs are out of control.

One increasingly popular approach seeking to rein in healthcare costs is Chronic Care Management. As a subset of Population Health, Chronic Care Management solutions seek to simultaneously increase patient care and decrease costs associated with long term, chronic conditions.

There is ample incentive to focus on reducing healthcare costs associated with chronic conditions. According to the Agency for Healthcare Research and Quality, in 2010 more than half of the U.S. population had at least one chronic condition and accounted for 86% (!) of total healthcare spend while nearly one-third of the population had two or more chronic conditions and accounted for 71% of total healthcare spend (!!).

The fundamental value proposition of Chronic Care Management is to shift the delivery of care from high-cost environments to lower-cost environments. That is not to say, however, that only the healthcare providers and payers benefit. Chronic Care Management also benefits patients in multiple ways: 1) it can help to reduce the frequency and severity of complications; 2) prevent expensive procedures, emergency room visits, hospitalizations, and readmissions; 3) improve ongoing quality of life; and 4) strengthen their engagement in their own care.

Accordingly, Catalyst believes Chronic Care Management is a theme that is here to stay and that all constituents within the healthcare ecosystem will support. Building on our previous HCIT research, our latest primer explores the role tech-enabled businesses play in helping to facilitate Chronic Care Management, while our latest market map highlights key constituents within this market.

At Catalyst, we employ a proactive, research-based approach to investing, targeting sectors experiencing outstanding growth. If you are a growth-stage chronic care management company seeking investment, our team would like to hear from you. Please send inquiries and business plans to grady@catalyst.com.