Overview

ContinuEM is raising $30 million to expand its innovative advanced emergent and urgent care model, integrating facility-based and at-home care services.

• This capital raise will support the development of three new sites, directly addressing the growing demand for accessible and efficient healthcare solutions in highly populated areas like Los Angeles and Orange Counties
  

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• With a strategic focus on enhancing patient care through a hub-and-spoke model, ContinuEM aims to leverage its proven track record and advanced technological platforms to significantly expand its market presence
  

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• The funding will facilitate scaling the operational model to meet increasing patient volumes, offering investors the opportunity to engage in a high-growth sector with a sustainable competitive advantage
  

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• By capitalizing on both emerging healthcare needs and its innovative service delivery, ContinuEM is poised to strengthen its position as a leader in the unplanned acute care and urgent care industry, enhancing patient outcomes and operational efficiency

• ContinuEM provides emergent and urgent care through ER-level physicians and technology, offering facility-based, at-home, and virtual services aimed at reducing hospital visits and ER overcrowding
  

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• Core services include physician consultations, advanced imaging, IV infusions, and laboratory services, enhancing patient accessibility and care quality
  

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• Founded by Dr. Freddy Sotelo and Dr. Bobby Massoudian, experienced emergency medicine physicians with a vision to improve healthcare delivery efficiency and patient satisfaction
  

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• Establishing three new sites in Los Angeles and Orange County, incorporating a patent-pending medical software for enhanced service management
  

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• Collaborates with Falck ambulance services for expanded at-home care, focusing on reducing hospital re-admissions and optimizing patient outcomes

The Problem

• Traditional hospitals and ERs are chronically overcrowded and increasingly costly, burdening patients and payers alike
  

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• With surging demand, patient wait times continue to lengthen, directly impacting patient satisfaction and the quality of care provided
• Existing healthcare facilities are unable to scale rapidly or efficiently enough to meet current and future demands, leading to a diminished capacity for effective care
  

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• UC centers are unable to handle higher acuity patients or provide comprehensive services such as advanced imaging or on-site laboratory tests
  

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• Traditional care settings are often described as “misery index businesses” due to their inability to provide timely and satisfactory services

Opportunity

• Over 87% of ER visits can be treated outside traditional ER settings, indicating an inefficiency and overload in emergency rooms – urgent care centers currently address less than 27% of these cases, highlighting a significant gap in care provision
  

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• The growing dissatisfaction with traditional ERs indicates a ripe opportunity for alternatives that offer rapid, cost-effective, and high-quality healthcare
  

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• The US urgent and emergent care market generates $163 billion annually, representing 241.5 million patient visits
  

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• In California, the market potential reaches $19.4 billion per year, driven by 31.8 million patient visits
  

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• Los Angeles County alone offers a $2.8 billion opportunity, with 7.5 million annual patient visits highlighting the local demand for improved care solutions

Solution/Strategy

• ContinuEM utilizes a “hub-and-spoke” model, where facility-based hubs provide comprehensive ER-level services and imaging, complemented by spokes offering at-home care
  

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• The deployment of a patent-pending, end-to-end SaaS platform enhances every phase of the patient journey, from scheduling and diagnostics to treatment and follow-up, incorporating AI/NLP to optimize care
  

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• The model collects detailed patient data, providing insights that improve treatment efficacy and support health technology developments
  

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• Ensuring high-quality, competent care that significantly surpasses traditional ER outcomes, ContinuEM delivered advanced (high acuity) care to 49% of their patients, avoiding >10,000 ER visits
  

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• Demonstrated capability to quickly identify market needs and establish operational sites, as evidenced by the success at the Lakewood, California location

Specific Risks

• Market Risk: The healthcare market’s demand may fluctuate due to economic conditions, changing consumer preferences, or shifts in healthcare policy, impacting the utilization of urgent care services
  

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• Liquidity Risk: Limited liquidity could affect the company’s ability to meet immediate financial obligations or support rapid expansion efforts
  

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• Regulatory Risk: The healthcare industry is highly regulated, and changes in healthcare laws or regulations could significantly affect operations and compliance costs
  

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• Operational Risk: Potential errors in operational execution or technology deployment could disrupt service delivery and patient care
  

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• Reimbursement Rate Risk: Variability in reimbursement rates from insurance companies and government programs could impact revenue streams and profitability
  

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• Medical Liability Risk: Risks associated with medical malpractice or patient care errors could lead to significant legal and financial consequences
  

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• Clinical Risk: Risks associated with maintaining high standards of clinical care and patient outcomes
  

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• Private securities are speculative, illiquid, and carry a high degree of risk – including the loss of the entire investment