Deacon Health Launches With $7M for Specialty Care Management

What You Should Know:

– 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.

Deacon Health Secures $7M Seed Funding to Advance Coordinated Specialty Care for Polychronic Populations

Deacon Health, a provider of coordinated care solutions for polychronic specialty care populations, is transforming how specialty care is delivered, connected, and managed across the healthcare ecosystem. The company leverages clinician-driven care and utilization management to improve outcomes while minimizing total cost of care. By emphasizing precise, evidence-based care supported by a patented, proven technology platform, Deacon Health empowers providers to deliver patient-centered, value-driven interventions that optimize health outcomes and system efficiency.

To support its expansion, Deacon Health has announced the close of a $7 million seed funding round. Investors include:

• Herb Fritch, founder and former CEO of HealthSpring
• Larry Cash, former President and CFO of Community Health Systems
• David Vandewater, founder and former CEO of Ardent Health Services
• Other healthcare industry leaders

President and CEO Kyle Cooksey, who has long been driven by a personal commitment to healthcare reform following the loss of his mother due to fragmented care, stated that Deacon Health is well-positioned to help providers better coordinate care and control rising costs. He emphasized that despite progress toward a connected system, critical gaps remain in care delivery that must be addressed through scalable, coordinated models.

Deacon Health partners with hospitals, accountable care organizations (ACOs), management services organizations (MSOs), and payers to enable specialty surgeons to more effectively manage pre- and post-surgical care. The company emphasizes:

• A conservative approach that prioritizes non-surgical interventions when clinically appropriate
• Evidence-based care pathways and physician-led coordination to enhance patient outcomes
• Seamless navigation that connects patients with the right care and provider at the right time

This approach not only ensures better patient journeys but also reduces unnecessary visits and procedures, thereby driving down overall costs.

The shift from traditional fee-for-service to value-based care (VBC) continues to accelerate. Deacon Health’s model aligns with broader industry reforms such as the Transforming Episode Accountability Model (TEAM), set to launch on January 1, 2026. TEAM will impact over 700 hospitals across 188 core-based statistical areas (CBSAs) mandated by the Centers for Medicare & Medicaid Services (CMS). As evidenced by recent outcomes—such as Humana’s report showing a 32.1% reduction in inpatient admissions and an 11.6% decrease in emergency department visits among VBC participants in 2023—improving outcomes while reducing costs has become an industry imperative.

Deacon Health stands at the forefront of this transition, providing the tools and infrastructure necessary to succeed in a value-driven healthcare landscape.