Koda Health to Expand Nationwide by Year’s End

Advance care planning tech firm Koda Health is expanding nationwide, with completion expected by the first quarter of 2023.

The company’s platform is designed to digitize patients’ decision-making around their care preferences and goals. Koda in February secured $3.5 million in growth capital to spur the expansion of its platform and hire additional staff. Ecliptic Capital led the investment, along with Sigmas Capital, CRCM Ventures, Headwater Ventures and individual investors from across the country. 

Now, the company’s ambitions to go national are coming to fruition, according to CEO and Co-founder Tatiana Fofanova.

“We decided to proactively go nationwide and become legally compliant in each state, because many of the customers we are working with and we are targeting are nationwide. They’re not necessarily limited to a particular geography,” Fofanova told Hospice News. “Many of them are payers, direct contracting entities, things like that.”

Koda expects to launch a second funding round in late 2023.

Currently operating in 20 states, Koda plans to enter a new one about every two weeks through the end of the year. The company most recently expanded to Virginia. Next up in its pipeline are Illinois, Delaware, Nevada, Rhode Island, and Oklahoma, according to Fofanova.

A key step in this expansion is ensuring that the company’s platform is consistent with laws in each state governing advance care planning. The particulars of these laws and processes vary from state to state. Koda is working with the legal firm Nixon Gwilt Law to research and develop state-specific iterations of their platform.

“For some states, it’s a pretty large difference,” Fofanova said. “They have very specific language that they would like you to use, the advanced directive forms and medical power of attorney forms must have a very specific structure.”

Following the $3.5 million investment round, Koda designed a repeatable sales and marketing strategy targeting potential clients almost entirely in the value-based care space, she told Hospice News. This includes accountable care organizations, insurance companies, direct contracting organizations, and value-based care enablers, among others.

The company is also marketing to health systems that participate in the Primary Care First payment model from the Center for Medicare & Medicaid Innovation.

“There’s a lot of alignment between patients, providers, administrators, financial decision-makers, in the value-based care space when it comes to proactive health care planning overall,” Fofanova told Hospice News. “Medicare is pushing for every older adult to be part of some sort of value-based care, so we think that is fundamentally where the industry is going.”