Maternal and neonatal health is a growing sector that has seen substantial investments in recent years. With the US facing a maternal mortality crisis, government health plans have increased coverage for low-income Americans to improve the health outcomes of mothers and babies. Venture capital firms such as Khosla Ventures and Rock Health are now investing in maternal health companies and technologies, anticipating sector growth as payment rates from Medicaid and commercial insurance accelerate. In 2023, early maternal healthcare investments totaled $306.5 million, a significant increase from $38.1 million in 2018.
Midwife and doula-led births offer comprehensive care coordination, counseling, lactation support, and behavioral health screenings. While midwives provide clinical services, doulas offer educational and emotional support to patients. Increased insurance coverage and integration of midwives and doulas by healthcare plans have led to more investments in the sector. Companies like Millie Clinic in California have seen positive outcomes, with lower preterm birth rates compared to the national average. These successes have attracted the attention of venture capital firms looking to invest in innovative maternal health solutions.
Medicaid coverage for doula services is not yet a federal requirement, but some states are choosing to cover doulas in their Medicaid plans. Commercial insurance mandates are lagging behind, with only Rhode Island currently requiring coverage for doula services. As companies specializing in doula and midwifery services seek national expansion, they face challenges with insufficient reimbursement, making venture funding essential for growth. Companies like Mae and Millie are looking towards venture funding to sustain innovation and overcome reimbursement limitations in the Medicaid-focused market.
In states like New York, where midwives are reimbursed at a higher rate compared to other states, challenges with reimbursement still persist. Providers like doula Kortny Feutardo have encountered reimbursement issues while serving a diverse group of clients through Medicaid. Feutardo, who offers her services across multiple states, suggests that government-sponsored reimbursement rates be raised to cover additional costs such as travel, food, and housing. Despite the challenges, Feutardo remains committed to providing quality care to all mothers, adjusting her private fees to match her Maryland Medicaid rate.
Overall, the growing investments in maternal and neonatal health sector show promise for improving outcomes for mothers and babies. With increased coverage from government health plans and the support of venture capital firms, companies specializing in maternity care are finding new opportunities for growth and innovation. By addressing reimbursement challenges and expanding access to quality care, these companies are paving the way for improved maternal and neonatal health outcomes in the US.
