The Rise Fund, which is the multi-sector strategy of TPG’s global impact investing platform, announced it has signed definitive documentation to lead an investment of over $200 million in Foodsmart – which is the leading telenutrition provider and food benefits management platform in the US. The terms of the deal were not disclosed.
Founded in 2010, Foodsmart supports those facing chronic disease and food insecurity by working with health plans and providers to give patients access to personalized and affordable healthy eating options. And Foodsmart combines virtual nutrition counseling through the largest standalone network of Registered Dietitians in the US, with an integrated digital food benefits management platform through which patients can plan personalized healthy meals, order quality food through grocers nationwide and local medically tailored food partners, apply for SNAP benefits, and learn ways to buy good food affordably. Now the company serves over 2.2 million members through contracts with leading regional and national Medicaid Managed Care Organizations, Medicare Advantage plans, commercial insurers, and over one thousand employers.
Developing healthier eating habits requires time and guidance. And it is a challenge for individuals who are already struggling with chronic illness, who work multiple jobs or are unable to cook healthy meals for themselves. And Foodsmart is fundamentally solving these challenges by integrating FoodSMART telenutrition with a FoodsMART food-buying marketplace that bridges access to high-quality groceries, meals, and food as medicine partners, enabling sustained healthy eating and improved outcomes for families and ROI for payers.
Foodsmart completed numerous matched-pair case-control studies and randomized control trials in partnership with leading health plans and academic institutions, evidenced by $24 to $58 per member per month savings in year one and a significant improvement in HbA1c. And over the last decade, Foodsmart has published many studies showing a reversal of food insecurity and reduced rates of obesity, diabetes, hypertension, and hyperlipidemia– especially for lower income populations. However, the hallmark of Foodsmart is that members keep improving their outcomes even three years later.
Foodsmart is also supporting patients in their effective use of higher-cost interventions, such as GLP-1s and bariatric surgery, by helping them improve their food-buying environment and eating habits before, during, and after those interventions to enable the opportunity to sustain their health improvements for the long run.
Foodsmart continues to partner with leading health systems like Advocate Health, Intermountain Health, and Memorial Hermann Health System, collectively representing tens of millions of patients. And provider led “foodscripts” in which primary care physicians refer their patients to Foodsmart dietitians and guide them on healthy food choices (sometimes subsidized by health plans) to address their conditions are a major component of the workflow Foodsmart is enabling with provider partners nationwide.
The deal is expected to close in July 2024 and remains subject to customary closing conditions.
KEY QUOTES:
“We are excited to partner with TPG’s Rise Fund given their strong track record scaling the reach of organizations that create sustained impact for people of all income levels–including Medicaid members and blue-collar workers. We support all people, regardless of economic status, with nutrition counseling and food buying support that changes their access to quality food, eating habits and health outcomes for the long run.”
“TPG Rise has expertise supporting innovative and needed solutions for underserved patients to become permanent fixtures in the fabric of healthcare. We look forward to working together to expand our capabilities, our reach and our impact.”
- Dr. Jason Langheier, MD, MPH, the CEO and Founder of Foodsmart
“Diet-related diseases and food insecurity are estimated to cost the US over $1 trillion per year, and disproportionately affect low-income and minority populations. Foodsmart’s unique virtual care platform meets these challenges by providing access to the largest network of Registered Dietitians in the US alongside medically tailored nutrition guidance to improve metabolic and whole body health. Foodsmart has proven to be the category leader from our longstanding thematic focus on the Foodcare space.”
- Tom Verghese, Business Unit Partner and Healthcare Lead for The Rise Funds
