Endocrinology VBC Startup Valendo Health Launches

Jan. 30, 2024
Built at Redesign Health, company is working Cecelia Health, a national virtual specialty care provider for chronic care management, and Advanced Metabolic Care & Research, an endocrinology center in Southern California

Valendo Health, a value-based endocrinology company, has launched with two provider partners. The company was built at healthcare startup creator Redesign Health in 2023 and has raised $4 million in seed funding. 

Boston-based Valendo said a recent study shows that people with diabetes experience improved quality of life, fewer complications, and lower utilization of emergency room visits and hospitalizations when they’re cared for by an endocrinologist, yet fewer than 10 percent of the 12 million Medicare beneficiaries living with diabetes were able to get access to an endocrinologist last year.  The company said that with its data-driven solution and tools that are designed to enhance clinical capacity, more people with diabetes can access the top-notch specialty care they need and deserve.

The two partners it is working with initially are Cecelia Health, a national virtual specialty care provider for chronic care management, and Advanced Metabolic Care & Research (AMCR), an endocrinology center in Southern California serving thousands of patients with diabetes and other metabolic conditions.

“Diabetes can be debilitating for the millions of people who live with the disease, and its growing prevalence and costs are among our country’s biggest healthcare challenges. No one is more qualified to address these issues than endocrinologists,” said Dave Terry, CEO and co-founder of Valendo Health, in a statement. “We’re excited to partner with AMCR, Cecelia Health and our growing network of endocrinology practices, combining their expertise with the best data and technology to get diabetes under control and improve the lives of millions of Americans.”

Terry was previously a partner at The Chartis Group. He also co-founded Remedy Partners, which focused on developing and managing episode payment programs for hospitals and health systems, commercial health insurers, and accountable care organizations. He later led Archway Health Advisors, which helped clients navigate the complexities of payment reform, risk management, care improvement, and data analytics. 

Valendo said it uses a phased approach, offering expertise, technology, and data-rich tools to help independent endocrinologists enhance clinical capacity, streamline operations, and engage in value-based contracting. 

Through its partnership with Cecelia Health, practices like AMCR can tap into an extended national network of dedicated Diabetes Educators, Nutritionists, and Nurses. The team brings specialized expertise, telehealth, and remote monitoring technology to improve care, reduce complications, and lower the total cost of care for people with diabetes.

Valendo Health’s solution is delivered in three phases:

In Phase 1 Valendo Health works with practices to increase clinical capacity and enhance patient services through the delivery of telehealth and remote patient monitoring services. 

Phase 2 of the program is designed to smooth practice operations, reduce overhead costs, and enhance practice profitability. The Valendo Health team does this by working to centralize administrative and clinical services and aggregating clinical and administrative data.

Phase 3 is focused on developing and managing value-based specialty care contracts with payers and at-risk provider groups. These contracts are designed to reward specialists for improving care and reducing costs for the population of patients they treat, rather than for generating more visits and procedures.

“With Valendo Health on the AMCR team, as an extension of our practice, we will be able to communicate with patients more effectively between visits, providing timely education and telemedicine that will enable our patients to be even more successful with their diabetes care. Valendo Health’s data and risk management expertise will also help us thrive in a value-based care environment,” said Tim Bailey, M.D., an AMCR senior partner, in a statement.

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