Company led by former Parata CEO starts commercialization
Tuesday, January 16, 2018
As featured in the Triangle Business Journal:
By Jennifer Henderson – Staff Writer, Triangle Business Journal
Jan 16, 2018, 3:09pm
Morrisville-based Spencer Health Solutions, which rebranded from HAP Innovations, is no longer solely focused on research and development.
The company’s in-home health care device, called Spencer, focuses on helping high-risk patients safely age and stay in their own homes. It is now in the homes of patients in several states – North Carolina, Pennsylvania and Virginia – as well as Canada.
“We’re finally out of the development and into the commercial stage,” says Spencer Health Solutions CEO Tom Rhoads, former CEO of Parata Systems.
Since 2015, the company has been focused on not only building a product, but a full platform – clinical, analytics and mobile – says Rhoads. Spencer includes “all the facets needed to fully support [patients] in their home environments” and that enables them to continue to age and enjoy their lives at home, he says.
“We have two pretty significant contracts with partners … one in the U.S. and one in Canada,” says Rhoads. Those partners – which include Catalyst Healthcare in Canada – target accountable care organizations, health systems and independent living facilities.
To date, the company has been funded by private investors in the life sciences field, according to Rhoads. Spencer Health Solutions is currently looking to raise $6 million in its Series C financing – including through bringing in institutional dollars – and has raised about $1.7 million of that round to date from private investors.
It’s scale capital, says Rhoads. “We have, just with the two contracts, several thousand units under contract that we’ll begin delivering …”
The company will need additional resources in sales, operations and engineering, “so we’ll look to appropriately scale up with those as we hit different milestones,” he says.
Rhoads says he expects the company’s headcount will be at about 20 full-time employees by the end of 2018.
“Our goal is really to solve the problems of adherence and engagement for the high-risk population,” Rhoads said last year. That population is defined as those patients who are taking five or more medications per day and who have two or more chronic conditions, for instance, both diabetes and heart disease.
That population says Rhoads, accounts for approximately $2 trillion – or about 65 percent – of health care costs.
The mission of Spencer Health Solutions closely aligns with a current focus in health care, says Rhoads, and is “helping people stay home longer and healthier.”