Chronic Care Coordination Business CareSync Shuts Down
“These events occurred despite the company’s best efforts to raise additional capital or find a strategic partner to enable the company to continue operations,” the company recording stated.
Earlier in the week a syndicate of investors, including Shipt CEO Bill Smith, tried to save the company. A video on Tampa Bay Business Journal’s website showed interim CEO Bob Crutchfield and Smith address what appears to be a company meeting of CareSync employees Monday talking about Smith’s management style and interest in creating a new chapter for CareSync. But in an email in response to a request for comment, Smith explained that the effort ultimately failed.
“A syndicate of investors including The Smith Family Office had intentions to acquire CareSync. We were hopeful that our support could save the company and would ultimately lead to a successful outcome for everyone involved, including the employees. Unfortunately, a deal could not be reached due to time constraints,” Smith said.
HIStalk offered some analysis and Twitter messages from former staff, including Grant Garrison, whose LinkedIn profile identifies him as a graphic designer with the business.
The company helped enterprise customers and consumers manage medical records for Medicare patients, particularly those with chronic conditions. Although some services were free such as appointment planning and medication reminders, CareSync charged a subscription fee for keeping personal medical records up-to-date. It also provided technology to support annual wellness visits and transitional care management.
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Three years ago CareSync closed an $18 million Series B round led by Graycroft Partners, Merck Global Health Innovation Fund, Harbert Venture Partners, with participation from existing investors Tullis Health Investors, Clearwell Group, CDH Solutions, and CareSync CEO Travis Bond. At that time, a news release from the company stated that it would use the new funding to hire 500 staff.
CareSync was one of many digital health companies that benefited from the expansion of Centers for Medicare & Medicaid Services’ chronic care management program as part of a broader shift to value-based care in what has become an increasingly crowded market.
A statement on CareSync’s main number and website also noted that the company would continue to keep patient information secure and accessible by company members and patients and that its servers would remain operational.
We intend to follow all applicable requirements under our agreements and applicable law regarding patient data in our possession, including, but not limited to, the secure transfer and/or ongoing maintenance and security of such patient data if transfer is not feasible.
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