Better Health Raises $3.5M Seed Round - E-commerce for Medical Supplies

The Evolving Landscape of Home Medical Supplies

The U.S. home medical supply market is substantial and experiencing growth. However, the current methods by which individuals obtain essential medical supplies, particularly those managing chronic illnesses, are often hampered by outdated and inefficient sales processes, frequently resulting in unsatisfactory customer experiences.

Introducing Better Health: A New Approach

A new company, Better Health, is aiming to revolutionize this sector through an e-commerce platform dedicated to serving individuals requiring medical supplies for chronic conditions. The startup has recently secured $3.5 million in a new seed funding round to further its objectives.

Market Size and Complexity

Better Health estimates the total U.S. market for home medical supplies – encompassing all reimbursable devices and supplies needed for chronic conditions such as colostomy bags, catheters, mobility aids, and insulin pumps – to be approximately $60 billion annually. This market presents unique complexities compared to other specialized goods businesses.

It necessitates collaboration not only with end-users who determine supply choices but also with payers, typically insurance companies, who handle reimbursement.

The Need for Guidance and Support

Individuals with chronic care needs often require substantial guidance and support when selecting appropriate equipment and supplies. The choices made can significantly impact their overall quality of life.

Naama Stauber Breckler, co-founder and CEO of Better Health, detailed the origins of her motivation to address these industry shortcomings.

From CompactCath to a Broader Vision

“My first venture, launched immediately after completing my education, was CompactCath,” she explained. “We developed an innovative intermittent catheter, recognizing a gap in existing options for individuals with chronic bladder issues requiring daily catheterization. During the product’s market introduction, I became acutely aware of the challenges within the medical devices and supplies industry.”

“I was surprised by the difficulty people faced in obtaining life-saving medical supplies, realizing the issue extended beyond simply creating a superior product. A larger, systemic problem restricts consumer choice and hinders innovation.”

Echoes of E-commerce Pioneers

Stauber Breckler’s story bears resemblance to the founding narrative of Shopify. Like Tobi Lütke, Shopify’s founder, she identified inadequacies in existing solutions – in her case, the procurement of medical supplies – and sought to address them fundamentally.

While Better Health operates as a marketplace, unlike Shopify’s platform model, the underlying drive to resolve a core problem remains consistent.

Understanding Customer Pain Points

With CompactCath, the team found it necessary to construct their own direct-to-consumer marketing and sales infrastructure. This process involved extensive conversations with thousands of individuals living with chronic conditions, revealing the extent of the existing market’s deficiencies.

“We consistently heard similar accounts – difficulty locating suitable suppliers, a highly manual and error-prone process, unexpected bills, and a noticeable decline in care following diagnosis or surgery,” Stauber Breckler stated. “Patients are often left to manage on their own with a general prescription.”

The Importance of Personalized Solutions

Unlike prescription drugs where brand-name versus generic choices often yield similar outcomes, the selection of medical supplies can dramatically affect a patient’s experience. Individuals may be unaware of superior options like CompactCath, opting instead for alternatives that limit their mobility due to frequent changes and intensive procedures.

Even physicians may not be fully equipped to provide optimal guidance, as their experience is typically clinical rather than lived.

Real-Life Impact of Improved Access

“We’ve spoken with individuals who shared stories of experiencing 19 years with an ostomy and finally finding a product without constant leakage, or someone using a catheter for three years who hadn’t left their home for more than two hours due to discomfort,” Stauber Breckler recounted. “They were able to visit family members living three hours away for the first time.”

Better Health’s Comprehensive Support

Better Health distinguishes itself by employing advisors who provide personalized coaching and product education to patients. The company also assists with insurance navigation, paperwork management, cost estimation, and claim advocacy.

The startup leverages the insights of peers with firsthand experience of chronic conditions to enhance customer service.

Current Reach and Funding

Currently, Better Health is a Medicare-licensed provider in 48 states and has established partnerships with commercial insurers like Humana and Oscar Health. The seed funding round was led by 8VC, a healthcare-focused firm with prior investment in Stauber Breckler’s ventures, and included participation from Caffeinated Capital, Anorak Ventures, and angel investors Robert Hurley and Scott Flanders of eHealth.