Main Street Health announces $315M financing round to expand into 26 States

Main Street Health announced its expansion into 26 states. In conjunction with this announcement, Main Street announced it has raised over $315M in new capital including investment from strategic health plan and provider partners.

“The trust that exists between rural providers and their patients is truly unique,” said Brad Smith, Chairman and CEO of Main Street Health and former Director of the Center for Medicare and Medicaid Innovation (CMMI). “Across the country, we have seen that by partnering with local physicians and their teams to deliver high-touch, value-based care, we can improve the overall quality, cost, and experience of healthcare in rural America.”

Main Street partners with primary care clinics in rural America by placing a Health Navigator in each partner clinic. The Health Navigator assists the clinic’s providers with care coordination activities including ensuring patients have preventive screenings, calling patients to remind them to pick up their medications, scheduling patients for primary care visits after they are discharged from the hospital, and assisting patients with social determinant of health needs.

Main Street’s early outcomes have been very strong and include:

• 42% improvement in quality Star scores
• 23% reduction in hospitalizations
• 9% reduction in medical costs

“Main Street has helped transform the type of care we deliver in our clinic,” said Dr. Thomas Borgstedte, owner of Family Health Center in La Grange, Texas. “The Health Navigator and the data Main Street provides allow us to coordinate care for our patients in a way that we would never have been able to do otherwise.”

Main Street currently partners with over 900 clinics across 18 states with plans to expand into an additional eight states in 2024. The average clinic Main Street partners with has 2.5 providers and is located in a town of 3,000 to 5,000 people.

“In my 30 years of investing, I have never seen a company successfully scale this quickly with outcomes this strong,” said Annie Lamont, lead investor in the round and Managing Partner at Oak HC/FT. “I think this speaks to the opportunity that exists to improve healthcare across rural America as well as the operational experience of the Main Street team.”

In addition to Oak HC/FT, Main Street’s investors in this round include the five largest national Medicare Advantage plans, who collectively serve over 74% of Medicare Advantage members in the country. The round also includes investment from many of Main Street’s provider partners including large health systems, regional hospitals, and individual primary care physicians.
MB Bureau