Tech-focused senior living company Lifespark is reportedly seeking $50 million in growth equity.
The St. Louis Park, Minnesota-based company is pursuing the funding in coordination with Chicago, Illinois-based investment bank and advisor Lincoln International, according to a report Monday from Axios. The company’s fundraising process is “well underway,” according to the Axios report.
The report comes a little less than a year after Lifespark raised $20 million in Series B funding led by Minnesota-based Medicare Advantage plan provider UCare and Virgo Investment Group.
Lifespark has worked to establish a value-based care model for senior living, and is among the many driving forces behind the industry’s overall shift to embracing value-based reimbursement and coordinating care.
The company has forged a range of partnerships with payers in value-based arrangements, touting the ability to control costs and improve beneficiaries’ wellness through home-and community-based services. Last year, Lifespark acquired a senior living portfolio and has worked to integrate these communities into its effort to deliver whole-person wellness to older adults.
Lifespark essentially has created a health care delivery system with a minimal real estate footprint, allowing the company to bring its home-based health care approach into senior living communities.
CEO Joel Theisen summed up the company’s aggressive approach during a TALKS series conversation with Senior Housing News sister publication Home Health Care News, saying Lifespark has “tripled, quadrupled down” on its efforts to create a value-based model with immense upside.
“We just kept betting the farm. We bet the farm every three weeks at Lifespark, so we keep going into this deeper and deeper,” Theisen said.
Theisen added that Lifespark grew from 6,000 clients under global risk to 35,000 in a global risk contract.
“These are in MA, they’re in ACO Reach, they’re in ACO MSSP and we’re super excited about it. I couldn’t be more happy with what the team’s done and what the market’s done to appreciate the home and community-based platform we’ve built,” Theisen said during the HHCN+ TALKS webinar.
In August, Theisen confirmed that Lifespark was “in the process of raising a significant capital round,” during an interview with HHCN Reporter Andrew Donlan.
“We are in the process of raising capital to make sure that we do this right at-scale,” Theisen told Donlan.
In terms of what’s next for the company, Theisen previously said Lifespark looks to identify and strengthen existing partnerships to support rural and metro expansion outside of Minnesota.
“We’re going to partner, partner, partner, and be that gooey layer that brings these really cool assets together to be able to deliver on global risk contracting,” Theisen said. “That’s what’s next for Lifespark: build those partnerships and figure out how to do that, not with our own assets but with everybody else’s.”
A representative for Lifespark declined to comment on Monday’s report from Axios when reached by Senior Housing News.
The post Value-Based Care Innovator Lifespark Reportedly Seeking $50M in Growth Equity appeared first on Senior Housing News.