What You Should Know:
– Aware Health, a leading innovator in value-based musculoskeletal (“MSK”) solutions, today announced the successful close of a $3 million seed funding round.
– This round was led by Boomerang Ventures with participation from Bright Ventures, Suncoast Ventures, Tidal River Fund, Impulsum Ventures, Techstars, and pivotal angel investors. The funding will accelerate Aware Health’s mission to accurately diagnose employees’ and their families’ orthopedic issues and provide modern mind-body care that reduces healthcare costs for self-insured employers.
Aware Health: Revolutionizing Musculoskeletal Care Through Direct-to-Employer Solutions and Early Intervention
Founded in 2020 and based in San Francisco, CA, Aware Health is a female-led healthcare company disrupting traditional insurance-based models with a modern, direct-to-employer approach. By offering on-demand musculoskeletal (MSK) management, Aware Health helps employees stay productive, recover faster, and avoid the need for extensive medical intervention. Employers partner with Aware Health through a subscription-based model, paying a per-member rate.
Aware Health employs proprietary algorithms that guide clinicians in virtually diagnosing orthopedic conditions with same-day availability, reducing the need for unnecessary imaging and surgeries. This proactive, upstream intervention has yielded a 59% reduction in orthopedic healthcare claims, as demonstrated in a peer-reviewed study.
Proven Results: Cost Savings Through Early MSK Intervention
– 95% of patients with wear-and-tear orthopedic conditions who initially plan for surgery avoid surgical intervention.
– Clients experience an average 6.19x return on investment (ROI) in lifetime healthcare cost savings.
Expanding Market Opportunity for MSK Care
– One in two adults, or approximately 126.6 million Americans, are affected by a musculoskeletal condition.
– Musculoskeletal diseases cost the U.S. economy over $300 billion annually, including both direct healthcare expenditures and lost productivity.
Supported by angel investors such as Paul Johnson, ex-CEO and founder of Lemonaid Health, and Sachin Bhat, co-founder of Scribe, Aware Health is well-positioned for continued growth. Johnson, whose company Lemonaid Health was acquired by 23andMe for $400 million, brings valuable expertise in scaling healthcare startups. Bhat, whose company Scribe was acquired by Rippling, offers deep technical expertise in engineering and product development and now serves on Aware Health’s board, further enhancing the company’s leadership.
With new funding, Aware Health aims to expand its services to mid- to large-sized companies across the U.S. to meet the increasing demand for accessible and effective MSK care. By offering remote care solutions, Aware Health helps employees and their families recover more quickly while alleviating capacity challenges within the healthcare system, ensuring that workers stay healthy and productive.
“In a crowded MSK market, Aware Health sets itself apart from industry giants with its built-in diagnostic rules that improve the accuracy of the PT diagnosis,” said Ojha. “While competitors focus on enhancing exercise form through motion sensors, Aware Health leverages advanced diagnostic algorithms to ensure that employees receive the right treatment from the beginning, leading to better patient outcomes and reduced costs for employers. We are using the funds to build out our AI models, a new patient and provider engagement platform, and comprehensive employer dashboards to expand our reach and impact in helping more people get the care they need.”