New York-based in-home senior care technology company Hometeam is shedding two of its top executives as it shifts from a consumer payment-focused business model to one accommodating reimbursement from payers.
Recode first reported Thursday night that Hometeam President Matt Marcotte had left his role at the company in February, just five months after coming onboard in October. Marcotte, a veteran of Apple, Gap, and Tory Burch, was announced as the company’s first-ever president in November, and said at the time that he was “eager to bring my experience of building and scaling hyper-growth companies to Hometeam, while we fundamentally change what it means to age in this country.”
Since that appointment, the company has decided to pursue a different role within the in-home care marketplace, one in which Marcotte felt he did not have a place, explained Hometeam’s Chairman of the Board Bryan Sivak.
“In the beginning of the year, the company … made a decision to focus on one of our lines of business, our Medicaid line of business. As a result, we decided we wanted to find a CEO for the company that had extensive experience in the homecare, healthcare, and payer markets,” Sivak told MobiHealthNews. “Due to that resulting change in focus of the organization, Matt Marcotte, who is our president, decided that Hometeam would not be the best place for his talents and experience.”
In addition to Marcotte’s departure, cofounder and CEO Josh Bruno is also transitioning out of his current role while assisting with the search for a replacement, and will remain on the company’s board of directors after stepping down.
“Bruno … is still with the company. He is very involved in the process to find a new CEO, and whether he remains in an operating role will be up to the CEO, which is entirely typical in these situations,” Sivak said.
Specifically, Hometeam is looking to replace both Marcotte and Bruno with executives who are well-versed in managing a business transitioning from a consumer payment model to one that engages existing insurers. Sivak also confirmed other staffing changes below the executive level, but said that these were also in line with what would be expected for a company shifting gears.
Sivak said that these moves are not only what is best for the company’s bottom line, but are key steps toward bringing improved, tech-driven home care to more aging adults.
“When we sat down and looked at it, we as a board decided that the opportunity on the payer side, particularly in Medicaid and [dual eligible beneficiaries], and potentially [Medicare Advantage] in the future, was a much more interesting opportunity for the company — both from a market opportunity perspective, but also from the perspective of really focusing on how we are going to change the way healthcare is provided for elderly adults in this country,” he said. “If we put well-matched, highly trained caregivers into people’s homes and arm them with technology, collect data on a real-time basis, and use that data to help us and our payer partners make better decisions in terms of the care that is provided for those individuals, we can make massive differences in the total cost of care [and], most importantly, in the health outcomes of those members.”
Founded in 2014, Hometeam’s mobile-based service matches families and individuals with a caregiver for a senior — or anyone else who needs long-term care at home. Services include helping the patient take medication, maintain hygiene, provide transportation, or make meals. The Hometeam Caregiver App lets caregivers also plan activities and update family members about the patient’s daily progress, and all involved parties can view updates from their smartphone and send notes and suggestions to the caregiver. Initially this service paid its caregivers using client payments, but in late 2016 opened itself up to a reimbursement-based model.
Hometeam’s most recent funding round, comprising $27.5 million, was announced in early 2016, bringing the company’s total investment funding to just over $40 million, according to Crunchbase. The company also took on $7.5 million in convertible debt financing last month from its existing investors, Sivak said.
In May of last year, Hometeam announced Thomas Etergino as the company’s first-ever chief financial officer and Thomas Seaman as its general counsel and chief compliance officer. Julie Stern was named chief technology officer in November alongside news of Marcotte’s appointment as president. Etergino, Seaman, and Stern are all still with the company, according to their personal LinkedIn pages.
Tech-enabled home care services similar to Hometeam have also had their ups and downs as of late. Last year, San Francisco-based startup HomeHero threw in the towel, with founder Kyle Hill describing changes to employment law that sunk the company’s business model. CareLinx, on the other hand, was acquired by Generali Global Assistance in a September deal with undisclosed terms.