Loop Health, a telehealth The company announced Thursday that a startup specializing in the treatment of back pain and joint pain has raised $ 600 million in new funding.
The latest deals have raised its valuation to $ 6.2 billion, making it one of the most valuable digital health ventures. Tiger Global and Coatue Management spearheaded the Series E funding round, while Alkeon Capital Management and Whale Rock Capital Management bought $ 200 million in existing capital. The company will use the new money to expand its operations.
“In 2021, Hinge Health more than doubled its customer base compared to last year,” the company said in a statement.
According to a press release, 80% of employers and 90% of health plans with a digital musculoskeletal solution use Hinge Health.
Earlier this year, Modern Healthcare reported that musculoskeletal conditions were among the top five employers’ spending sources, according to a February report from the UnitedHealth Group.
This has led to massive investment in the digital physiotherapy market, mainly due to the large number of unnecessary spinal surgeries, Tom Kassel, president of digital consulting company Rock Health, told Modern Healthcare last month.
Most telemedicine and musculoskeletal startups fall into two categories, Kassels said: those like Hinge Health and SWORD Health, which employ providers, and the likes of IncludeHealth and Kaia Health, which focus primarily on providing tools. which physical therapists can use to provide virtual assistance. Employers usually require a startup to hire suppliers so that they can guarantee some continuity of service. In contrast, insurers and health systems can use their tools to connect their own physiotherapists to the Internet, Cassels said.
According to a study published in the journal Spine, Modern Healthcare reports that the United States has the highest rate of spine surgeries in the world, despite reports of prevalence of spinal diseases similar to those found in other countries. Medicare spending on inpatient back surgery has more than doubled since 1992, to over $ 1 billion in 2003. Patients living in areas with a large number of local surgeons are more likely to undergo surgery, even if physiotherapy or other pain relief services may be more appropriate, according to a 2015 study by the Workers’ Compensation Research Institute.
Mobile healthcare companies raised $ 1.4 billion in the third quarter of 2021, up 109% over the same period last year, according to data data from Digital Health Business & Technology.