Omada Health Acquires Physera
Building a Comprehensive Digital Care Provider, Omada adds Capability for Telehealth Physical Therapy
San Francisco, CA (May 19, 2020) -- As an increasing number of patients turn to remote care, Omada Health today announced the acquisition of Physera, a leading musculoskeletal care company that delivers interventions digitally and via telehealth. The offering includes video access to a nationwide network of licensed physical therapists for diagnosis and treatment, as well as in-application animations, voice prompts, digital exercise therapy, and other guidance designed to reduce musculoskeletal pain.
Through the deal, Omada adds Physera’s musculoskeletal solution to its suite of digital care programs for the prevention and self-management of diabetes, hypertension, and mental health. Omada will begin offering the musculoskeletal program immediately, making the company the most comprehensive provider of digital care in the market.
Over the last three months as the COVID-19 pandemic has necessitated shelter in place orders across the country, telehealth visits for chronic care, physical therapy, mental health, and other care needs have risen significantly. Omada’s programs address all of the most prevalent and costly health issues for employers and health plans. Omada’s acquisition of Physera broadens their portfolio, while extending a focus on depth of care and clinical rigor.
“Integrating a digital physical therapy solution better equips Omada to meet the pressing needs of the current moment, and accelerates our progression towards a fully integrated care experience to address the needs of our partners and participants,” said Omada CEO and co-founder Sean Duffy. “We’ve long believed that human-led digital care should be the first option for those dealing with chronic conditions, mental health issues, and a host of other needs. Today’s announcement positions us to deliver true whole-person care, and true value, better than any other digital health company.”
More than half of Americans report a chronic musculoskeletal condition in any given year, and nearly one in five healthcare visits are for a musculoskeletal issue. Total spending on musculoskeletal conditions in the United States exceeds $200 billion annually, with an average cost of $7,800 per person. More than 75 percent of patients with Type 2 diabetes or obesity report having at least one joint mobility issue, making Physera’s musculoskeletal capabilities a natural addition to Omada’s chronic disease program.
“Omada has been a pioneer in developing evidence-based, clinically rigorous programs that deliver real-world results,” said Dan Rubinstein, CEO of Physera. “They’ve designed programs that deliver outcomes at scale while never forgetting a fundamental truth: in healthcare, human connection matters, especially when that care is delivered digitally. It’s a philosophy we’ve shared at Physera, and we are excited to join the Omada team.”
Physera achieves clinical outcomes and reduces spend by preempting avoidable treatments and procedures including prescriptions for opioids, specialist visits, imaging, and surgery. Physera is available through employers and health plans, as well as direct-to-consumers. The company’s results demonstrate better health outcomes and lower costs than traditional approaches to musculoskeletal care.
In conjunction with the acquisition, Omada raised an additional round of growth capital from Perceptive Advisors, a leading life sciences investment firm, to finance the deal and support future company growth. “Omada’s vision for, and progression towards, creating a true digital care provider is a perfect example of where healthcare is headed,” said Sam Chawla, Portfolio Manager at Perceptive. “Adding an MSK solution to their offering accelerates that progression, and made Omada an even more attractive opportunity for us.”
About Omada Health
Omada Health is a leading digital care company that offers innovative and clinically effective digital health programs to empower individuals to engage in their health and lead healthier lives. The program is personalized to meet each participant’s unique needs as they evolve, ranging from diabetes prevention, type 2 diabetes management, hypertension, behavioral health, and musculoskeletal issues. Omada combines professional health coaching, connected health devices, real-time data and personalized feedback to deliver clinically meaningful results. The company is the largest CDC-recognized provider of the National Diabetes Prevention Program. To learn more, visit www.omadahealth.com.
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