Care Navigation Technology Enables More than 13.5% in Medical Loss Ratio (MLR) Reduction
Deacon Health, Inc., a specialty care management provider, today announced the public launch of its specialty care management platform supportive to polychronic patients. Deacon Health is powered by a technology that it acquired through an asset purchase that drives over 13.5% in MLR reduction.
The company is also announcing a seed funding round with $7 million in closed and committed capital from Herb Fritch, founder and former CEO of HealthSpring; Larry Cash, former President and CFO of Community Health Systems; and David Vandewater, founder and former CEO of Ardent Health Services; among other parties.
“My commitment to quality healthcare started almost 30 years ago when my mom died suddenly after not receiving the necessary quality care. This made it clear to me just how disjointed our healthcare system was. Significant progress has been made toward a connected healthcare system, but there are still plenty of opportunities for advancement in a way that improves outcomes while reducing costs,” said Kyle Cooksey, President and CEO at Deacon Health. “I’m proud to take the helm at Deacon Health to help providers better coordinate and control cost.”
Deacon Health partners with hospitals, accountable care organizations (ACOs), management services organizations (MSO), and payers to help their specialty surgeons better navigate care before and after surgery. Deacon Health also provides coordination of care focused on a conservative approach that seeks non-surgical care pathways when medically appropriate. Using evidence-based care plans and high-touch physician coordination, Deacon Health prioritizes a patient-centered model to ensure the patient has the best possible journey. Deacon Health connects patients with the right care and the right provider at the right time on that journey, ensuring positive patient outcomes while reducing unnecessary visits and costs.
“Today’s healthcare providers face a challenging shift in pay models, which takes away from their primary focus – providing quality care for their patients,” said Fritch. “Deacon Health’s underlying technology is proven to improve patient outcomes and cost efficiency resulting in savings for providers and payers alike. I’m proud to support this innovative company with such a meaningful impact on our healthcare system.”
As evidenced by the upcoming launch of the Transforming Episode Accountability Model (TEAM) on January 1, 2026, the healthcare industry continues to evolve from the traditional fee-for-service model to a value-based-care (VBC) model, impacting over 700 hospitals in the 188 core-based statistical areas (CBSAs) that the Centers for Medicare & Medicaid Services (CMS) has selected for mandatory participation. Given this growing adoption of VBC, it is more crucial than ever for healthcare organizations to improve patient outcomes and satisfaction while reducing costs. Patients in VBC arrangements experienced 32.1% fewer inpatient hospital admissions and 11.6% fewer emergency department (ED) visits in 2023, according to a Humana report.
“For the past three years, the cost of healthcare has increased by more than 5% each year. Given the complexities of our healthcare system, providers and payers face an especially challenging situation – controlling healthcare costs while continuing to provide quality care,” said Cash. “With extensive experience and expertise alongside its proven technology, Deacon Health is well positioned to partner with healthcare organizations to successfully participate in value-based care, improve quality, and control cost.”
“TEAM is just another step in the ongoing shift toward value-based care models, but it marks an important milestone for the industry – value-based care is the future of healthcare,” said Vandewater. “I’m proud to invest in Deacon Health as they address an important issue for organizations in value-based care models by providing the services necessary to improve care coordination for better outcomes without increasing costs.”
About Deacon Health
Deacon Health is a coordinated care solution provider for specialty care patient populations with a focus on polychronic specialty care. The company minimizes total cost of care while improving outcomes through precise, evidence-based care delivered through clinician-driven care and utilization management. Built on a proven, patented technology foundation that has a demonstrated ability to improve both patient outcomes and cost efficiency, Deacon Health is transforming the coordination, delivery, and connectivity of polychronic specialty care across the healthcare ecosystem. For more information, visit https://deaconhealth.com/.
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Media Contact:
Mackenzie Kreitler
mkreitler@heycommand.com
