Sleep Data and BetterNight, the leading providers of PAP (positive airway pressure) services in San Diego, CA, announced a $6 million round of growth funding led by HCAP Partners, a San Diego-based provider of growth capital to middle market companies. BetterNight will use the funding to fuel the continued market expansion of its virtual care platform which includes telehealth and remote patient monitoring for those with sleep apnea as well as a digital therapeutic solution based on cognitive behavioral therapy for those who suffer from insomnia.
The Centers for Disease Control calculated that the annual economic burden of undiagnosed sleep apnea among US adults is approximately $162 billion per year. Approximately 54 million adults in the US, or 18% of the population, suffer from sleep apnea and 20% suffer from insomnia, most of whom remain undiagnosed. Of those who receive help, few receive a positive, lasting outcome.
Sleep Data launched BetterNight in 2018 as the nation's first virtual care platform to address comprehensive sleep management. The BetterNight platform delivers lower cost of care, improved outcomes, and a superior experience for the consumer. Care is accessed via telemedicine and remote patient monitoring and maintains a 99% patient satisfaction rate. BetterNight partners with providers, accountable care organizations, clinics, employers, health plans, and consumer aggregators.. Sleep Data currently serves more than 22,000 patients annually and is an industry thought leader with sixteen peer papers published to date. BetterNight is utilizing Sleep Data's clinical expertise and operational quality as it continues to expand nationwide with its highly scalable virtual care platform.
"With the aging of our population and new awareness around the negative health and performance consequences of inadequate sleep, a tsunami of new consumers will be entering an inefficient and costly sleep system that does not produce good outcomes," said Sleep Data CEO Dave French. "We have seen rapid consumer acceptance and adoption of telehealth, in-home testing, and remote patient monitoring. Today's announcement – and the incredible support of our partners at HCAP – will accelerate the commercialization of our virtual platform which helps participants quickly receive the care they deserve. Our solutions increase access to much-needed care and are delivered at lower unit costs while achieving superior outcomes. We are excited to continue to rapidly deploy nationwide based upon our recent regional successes in states including Arkansas, Illinois, Nebraska, and California."
"Sleep disorders are highly prevalent, underdiagnosed, and have a high negative impact on overall health and healthcare costs," added Dominic Munafo, Sleep Data's Chief Medical Officer. "Individuals with untreated sleep apnea had inpatient costs 82% higher than treated patients. Apnea is causal for hypertension and associated with conditions like coronary artery disease, stroke, obesity, and type 2 diabetes".
HCAP Partners' investment was led by Tim Bubnack and Hope Mago. "BetterNight has become a category-defining company in sleep care," said Tim Bubnack, Managing Partner HCAP Partners. "The BetterNight team's vision, rigorous clinical focus, and intelligent application of scalable technology across multiple platforms has raised the bar for what healthcare buyers, providers, and individuals should expect from modern sleep health solutions."