Multimodal healthcare provider Carbon Health is stepping into chronic condition management with its recent acquisition of Steady Health, an integrated diabetes care platform. The terms of the deal were not disclosed.

The acquisition will support Carbon Health’s primary care model, which combines in-person clinics with a virtual care platform. Carbon Health patients can receive services ranging from preventative care to LGBTQ+ specific care to virtual mental health support and more.

“From day one, our mission has been to increase the accessibility of high-quality care, which means continuing to increase access points and improve communication between patients and healthcare providers,” Eren Bali, cofounder and CEO of Carbon Health, said in a statement.

Steady Health provides patients with diabetes a care team made up of an endocrinologist and a diabetes coach, whom they can message at any time. The platform syncs with users' continuous glucose monitors to analyze their data and provide actionable insights.

“With top endocrinologists and our care platform, we’re delivering unmatched medical care through a dramatically improved connected patient-provider experience,” Henrik Berggren, Steady Health’s founder and CEO, said in a statement. “Becoming part of Carbon Health will enable us to provide end-to-end care for our patients, including in-person visits at a Carbon clinic when needed. We’re super excited to carry on our mission of empowering people with diabetes to live the life they want.”

In addition to acquiring Steady Health, Carbon Health has appointed Myoung Cha as its chief strategy officer and president of its new home-based care division, and Nita Sommers as chief growth officer. Cha, the former head of Apple Health’s strategic initiatives, will be responsible for growing the company’s device-enabled home care operations, while Sommers will focus on expanding Carbon Health’s services into new clinical areas and building out its value-based care offerings.

“Myoung and Nita are two incredible powerhouses with deep, strategic healthcare experience that will enable Carbon to get even closer to our vision of healthcare accessibility,” Bali said.

WHY THIS MATTERS

More than 34 million Americans have diabetes, representing about 10% of the population, according to the American Diabetes Association.

The disease carries a high burden of death and associated costs, according to the ADA’s statistics. In 2017, diabetes was the seventh leading cause of death in the U.S., attributing to 270,702 deaths that year. It also contributed to $327 billion worth of direct medical costs and lost productivity that year.

The Steady Health acquisition will allow Carbon Health to alleviate some of those burdens while also serving as a jumping-off point for a deeper focus in chronic care.

“Devices like CGMs create an opportunity to connect a patient with their provider in a way not possible before, to drive better outcomes,” Bali said. “Diabetes is one of the most pervasive and expensive health conditions in the U.S., and we are excited to partner with Henrik Berggren and his team at Steady Health to help elevate the management of diabetes. The Steady Health care platform is also one that Carbon intends to leverage to expand into the management of other chronic conditions in the future.”

THE LARGER TREND

Carbon Health has raised roughly $75 million to date following its $28 million Series B1 round of funding from last year.

Other startups that blend in-person care with virtual offerings include Forward Health, which recently raised $225 million in Series D funding, and One Medical, which has found itself in hot water for its COVID-19 vaccination practices. Just this morning, One Medical announced that it is also looking at the M&A space with the purchase of Medicare-focused provider Iora Health for $2.1 billion. 

There are also a number of virtual chronic condition management platforms, including Vida Health, Omada and Roche's diabetes management app mySugr.