Novocardia™ Announces $53.7 Million Financing Led by Deerfield Management
New Venture to Partner with Cardiologists to Improve the Quality and Value of Cardiovascular Care in the United States
NEW YORK, June 28, 2021 /PRNewswire/ -- Novocardia, a value-based cardiovascular care delivery platform, announced today a $53.7 million Series A financing led by Deerfield Management Company. Novocardia is dedicated to improving the quality and value of cardiovascular disease care in the United States, which afflicts more than 85 million U.S. adults and accounts for approximately $215 billion in direct medical spending each year in the U.S. – equivalent to 1 in 6 healthcare dollars.*
Novocardia is partnering with cardiologists to help them to grow their practices and navigate an increasingly complex healthcare landscape through participation in fee-for-value (FFV) reimbursement models. The company's mission is to deliver better care at lower cost, through more proactive and prevention-focused care, leveraging technology, and creating aligned partnerships with health plans and referral partners.
The Series A financing will be deployed to build out the company's care delivery network of cardiology practices, develop its proprietary actuarial and quality-focused analytics platform – which will be purpose-built to address the unique needs of the cardiovascular disease care market – and deploy its cardiovascular disease care model.
"Cardiovascular disease is the single largest driver of health care spending in this country, and spending on cardiovascular disease is projected to increase to more than $800 billion annually by 2030,"* said Daniel Blumenthal, MD, MBA, Chief Executive Officer of Novocardia. "We are excited to partner with cardiologists to help them adapt to and navigate changes in the health care landscape – including the shift to fee-for-value reimbursement models."
Founded in 2020 by two cardiologists, Dr. Dan Blumenthal, and Dr. Julius Torelli, FACC, Novocardia supports cardiologists in building sustainable practices which are focused on proactive approaches to treating and preventing cardiovascular disease. Novocardia provides partner practices with access to purpose-built analytics and point-of-care tools designed to improve cardiovascular health. Additionally, Novocardia will facilitate building symbiotic relationships with health plans and primary care partners, along with an array of other capabilities, including implementation of quality and process improvement efforts, value-focused clinical programs, growth and development services, support for traditional back-office functions, and technology-enabled care delivery.
"Given the significant impact of cardiovascular disease on morbidity, mortality, and health care cost growth, private payers, states, and CMS have worked to accelerate the shift towards value-based payment in cardiology. Novocardia is well-positioned to lead that shift through deep partnerships with cardiologists powered by enabling technology and services," said Julian Harris, MD, MBA, a partner at Deerfield. Dr. Julian Harris has played a key role in his career helping to accelerate the country's shift towards value-based payment through senior roles in the public and private sector.
"At Novocardia, we believe passionately that cardiologists should be at the center of cardiovascular care," said Dr. Julius Torelli, FACC. "We strive to support their success in an increasingly complex care delivery and payment environment, while also serving the interests of patients, health plans, primary care groups, and other partners."
ABOUT NOVOCARDIA™
Founded in 2020, Novocardia is on a mission to transform how cardiovascular disease care is delivered in the United States, and aims to help patients with heart and vascular disease live longer, healthier, and more satisfying lives. We are committed to putting cardiologists, and their patients, at the center of care by investing in our partner practices, deploying purpose-built data and analytics tools to improve patient outcomes, and enabling our partners to transition more successfully to value-based care. To learn more about Novocardia, please visit www.novocardiahealth.com.
ABOUT DEERFIELD MANAGEMENT COMPANY
Deerfield is an investment management firm committed to advancing healthcare through investment, information, and philanthropy. For more information about Deerfield, please visit www.deerfield.com.
* Sources:
1) United States Centers for Disease Control. Available at: https://www.cdc.gov/chronicdisease/about/costs/index.htm and www.cdcfoundation.org/pr/2015/heart-disease-and-stroke-cost-america-nearly-1-billion-day-medical-costs-lost-productivity
2) Benjamin EJ, Muntner P, Alsonso A et al. Heart Disease and Stroke Statistics—2019 Update. A Report from the American Heart Association. Circulation. 2019;139; 2) Khavjoue O, Phelps D, and Leib A. Projections of Cardiovascular Disease Prevalence and Costs: 2015-2035. Report Prepared by RTI International. November 2016. RTI Project Number 0214680.003.001.001.
SOURCE Novocardia
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