This CEO’s $1.7 Billion Health Startup Began With Moms. Now She Wants To Expand To All Women

Key Concepts

• Pomelo Care: A health startup focused on improving maternal and infant care, initially targeting Medicaid patients and now expanding to all women.
• Preeclampsia: A pregnancy complication characterized by persistent high blood pressure, potentially preventable with early identification and treatment.
• Neonatal Intensive Care Unit (NICU): Specialized hospital unit for newborns requiring intensive medical care.
• Value-Based Care: Healthcare model where providers are paid based on patient health outcomes, incentivizing preventative care and cost reduction.
• Virtual Care: Delivery of healthcare services remotely using technology.

Improving Maternal & Infant Care: Pomelo Care’s Expansion

This report details the growth and strategy of Pomelo Care, a health startup founded by Marta Brilic Karns, currently valued at $1.7 billion. The company’s origins stem from Karns’ personal experience with the fragmented and impersonal nature of maternal care despite having access to quality healthcare and insurance. She observed a “stark disconnect” between her professional work in data-driven healthcare improvement and the realities of her own pregnancy experience.

The Problem & Pomelo’s Solution

Karns identified a significant gap in care, particularly for patients covered by Medicaid, who often face chronic conditions, inconsistent medical attention, and socioeconomic instability. Data revealed that one in ten babies are admitted to a Neonatal Intensive Care Unit (NICU), frequently due to preventable risk factors like preeclampsia. Preeclampsia, a complication causing persistent high blood pressure, can be mitigated by as much as 25% with a low-dose aspirin regimen, but early identification of at-risk patients is crucial.

Pomelo Care was founded in 2021 to address this challenge. The company utilizes a virtual care model, leveraging data analytics to identify pregnancy risks and provide continuous monitoring. This proactive approach aims to deliver evidence-based care, focusing on preventative measures to improve both maternal and infant outcomes. The name "Pomelo" is symbolic, referencing the citrus fruit’s tough rind as a metaphor for protective care.

Data-Driven Results & Cost Savings

Pomelo’s model has demonstrated significant cost savings for insurers. NICU stays represent a substantial financial burden on the US healthcare system, exceeding $25 billion annually. Data presented at the Society for Maternal Fetal Medicine and International Society for Pharmaccoeconomics and Outcomes Research showed that Pomelo’s program reduced costs for its Medicaid patients by 15% overall. This reduction was driven by a 46% decrease in Emergency Room (ER) visits and a 58% reduction in NICU admissions.

The care provided by Pomelo is fully covered by insurance, making it accessible to patients at no direct cost. This cost-effectiveness is a key factor in insurers’ willingness to contract with Pomelo, including major providers like United Healthcare and Elevance, as well as large employer plans such as Coke, Inc.

Funding & Future Expansion

Pomelo recently secured $92 million in funding, led by venture firm Stripes, resulting in the $1.7 billion valuation – a more than three-fold increase from its $500 million valuation in June 2024. Andre Horowitz, Box Group, and other investors also participated in the funding round.

Marta Brilic Karns intends to utilize these funds to expand Pomelo’s virtual care model beyond maternal care, encompassing women at all stages of life, including post-menopausal women and children. This expansion signifies a broader ambition to address the healthcare needs of women throughout their lifespan.

Operational Excellence & Leadership

Stripes partner Ron Sha, who has followed Karns’ career since her time at Flat Iron Health, praised her as a “very disciplined operator.” He noted the company’s consistent achievement of operational targets, including managing operating expenses and burn rate effectively. Sha emphasized that the increased valuation is justified by Pomelo’s strong operating results, revenue growth, and clear projections for 2026 and 2027. While Pomelo declined to disclose specific annual revenue figures, the company operates on a per-person-per-month fee structure.

As Marta Brilic Karns stated, “We built a care model to identify who is at risk for pregnancy complications and then deliver the best evidence-based care we know.” This statement encapsulates Pomelo’s core mission and approach to improving healthcare outcomes.

Conclusion

Pomelo Care represents a successful application of data-driven, value-based care in a traditionally fragmented and costly area of healthcare – maternal and infant care. Its initial success with Medicaid patients, coupled with its expansion plans and strong financial backing, positions the company for continued growth and a potentially significant impact on women’s health. The company’s focus on preventative care and early risk identification offers a compelling model for improving outcomes and reducing healthcare costs.