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Saturday, Jun 22, 2024

Livara Health Closes $15M Series B Funding

HEALTHCARE: Funds to Accelerate Technology, Expand Footprint

SAN DIEGO – Livara Health, which operates SpineZone therapy clinics in San Diego and Orange counties, has announced it has raised $15 million in Series B funding and has plans to expand into another state.

Rob Cohen
Livara Health

CEO Rob Cohen said the latest round of funding was not specifically to expand its geographic reach, but to accelerate the company’s technology and clinical capabilities and to meet the growing need for its services.

The funding round was led by A1 Health Ventures, with participation from existing investors Polaris Partners, Providence Ventures, Martin Ventures, and a new strategic investor.

Livara Health already has supported a major health plan in 14 states outside of California, and Cohen said it will soon announce a partnership with an existing clinic in another state to offer the full services of SpineZone clinics without having to build a new brick and mortar facility.

The company opened in 2005 as SpineZone, which provided personalized exercise programs and treatment for neck and back pain.

Cohen said the company was rebranded in 2022 to reflect the broader range of health services it offers. Livara Health still operates seven SpineZone clinics in San Diego and two in Orange County.

“There’s a lot of brand affinity among patients and physicians and others, so it makes sense to keep that branding consistent,” Cohen said about keeping the SpineZone name. “But as a corporate name, and as we expand into other areas of the country, we’re using the broader Livara brand.”

SpineZone was founded by brothers Kamshad and Ramin Raiszadeh. Kamshad Raiszadeh remains with the company as chief medical officer.

Expanding Needs, Growing Services

Livara has treated more than 120,000 people since its founding as SpineZone, which offers AI-driven online technology, telehealth services and onsite healthcare.

“The company has gradually expanded beyond a highly specialized approach to spine into broader musculoskeletal support,” Cohen said about Livara’s evolution.

The clinic’s holistic approach to health care includes exercises in mindfulness, sleep, nutrition, pain psychology and psychosocial interventions that focus on psychological or social actions to produce healthy results.

Cohen said the rebranding reflects the company’s support of the whole person and its focus on helping people thrive by improving their musculoskeletal health.

“This word ‘Livara’ symbolizes the ability to really thrive in your life, so it’s just a good representation of the overall approach and what our mission is,” he said.

The clinics also offer therapy to address habits involving alcohol, opioids and smoking as well as psychological issues such as depression, stress and anxiety, which Cohen said can impact musculoskeletal health.

“We have always delivered that support,” he said. “I’d say over the years and right now we are enhancing those types of things. The structure, the content, how we deliver them. All of those things are always being enhanced.”

The company already provides those services virtually in 14 states, and Cohen said Livara will announce details about a launch in a new market out of state soon.

Cost Savings, Better Health

The company’s expansion matches a growth in value-based care, which already is prevalent in California and becoming embraced in other states.

As opposed to a fee-for-service model traditionally used by many health care providers, the newer value-based approach incentivizes providers to focus on keeping patients healthy before they need more costly procedures.

“Fee-for-service is a highly reactive system,” Cohen said. “You go to a doctor when you’re sick, and the doctor gets paid to treat you when you’re sick, but the doctor does not get paid to keep you healthy. So it’s really a misalignment of incentives.”

The approach has worked for healthcare providers already partnering with Livara. A recent two-year claims-based study from a medical group partner showed members that engaged with Livara had 45% lower costs versus those who did not participate.

In 2021, SpineZone reported that in two years, the Sharp Community Medical Group achieved a $3.4 million cost savings for patients with back pain who used the clinic.

Cohen said Livara’s two main target segments are risk-bearing providers such as hospitals and health plans, which also bear the cost of care for their members.

“Musculoskeletal costs are increasing rapidly, so there’s a high demand for that service, and we can also improve patient member experience and outcome,” Cohen said. “We need to be able to invest in serving more members throughout the country. That’s why we’re doing the funding.”

Livara Health
CEO: Rob Cohen
BUSINESS: Health therapy
WEBSITE: https://livarahealth.com/
SOCIAL IMPACT: The company is focused on preventative health services to avoid surgeries and other expensive procedures.
NOTABLE: Livara has treated over 120,000 people since its founding as SpineZone in 2005.


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