The news: California-based Medicaid-provider enablement company Waymark emerged from stealth mode with a $45 million Series A funding round. It plans to scale its startup that provides primary care practices with trained community health workers and workflow management software—both of which should move the needle on value-based care for Medicaid patients, per Forbes.
Why it’s worth watching: There aren’t many health tech startups tackling the Medicaid population since it’s a difficult business model to work with—namely due to poor patient engagement and reimbursement barriers.
A key differentiator: Unlike other tech-focused Medicaid providers like Cityblock Health, Waymark doesn’t plan on building its own clinics. It’s instead focused on partnering with existing Medicaid programs to provide the tech backbone, which means it won’t directly deal with usual Medicaid barriers like reimbursement.
What’s next? The Medicaid population is massive—which means the few startups touting Medicaid patient engagement solutions could be attractive to insurers seeking improved health outcomes.
Insurers with Medicaid Managed Care programs like Centene and Medicaid insurers like Molina Healthcare are likely on the hunt to boost member engagement among their heftier member populations.