What You Should Know:
– The Rise Fund, the multi-sector strategy of TPG’s global impact investing platform, today announced it has signed definitive documentation to lead an investment of over $200 million in Foodsmart, the leading telenutrition provider and food benefits management platform in the US. Terms of the transaction were not disclosed.
– Founded in 2010, Foodsmart supports those facing chronic disease and food insecurity by partnering with health plans and providers to give patients access to personalized and affordable healthy eating options.
Foodsmart: Revolutionizing Nutrition and Food Access
Foodsmart integrates virtual nutrition counseling through the largest standalone network of Registered Dietitians in the U.S. with a comprehensive digital food benefits management platform. This platform enables patients to plan personalized healthy meals, order quality food from grocers nationwide and local medically tailored food partners, apply for SNAP benefits, and learn ways to buy nutritious food affordably. Currently, Foodsmart 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.
Forming healthier eating habits requires time and guidance, a challenge for individuals struggling with chronic illness, working multiple jobs, or otherwise unable to cook healthy meals. Foodsmart addresses these challenges by integrating its telenutrition services with a comprehensive food buying marketplace. This approach bridges access to high-quality groceries, meals, and food-as-medicine partners, facilitating sustained healthy eating and improved outcomes for families, while also providing a return on investment for payers.
Foodsmart has conducted numerous matched-pair case control studies and randomized control trials in collaboration with leading health plans and academic institutions. These studies have demonstrated savings of $24 to $58 per member per month in the first year and significant improvements in HbA1c levels. Over the past decade, Foodsmart has published multiple studies showing a reversal of food insecurity and reduced rates of obesity, diabetes, hypertension, and hyperlipidemia, particularly among lower-income populations. Notably, members continue to improve their health outcomes even three years later.
Additionally, Foodsmart supports patients undergoing higher-cost interventions such as GLP-1 therapies and bariatric surgery. By helping patients improve their food buying environment and eating habits before, during, and after these interventions, Foodsmart enables sustained health improvements in the long term.
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. A key component of Foodsmart’s workflow with provider partners nationwide is the provider-led “foodscripts,” where primary care physicians refer their patients to Foodsmart dietitians for guidance on healthy food choices, often subsidized by health plans, to address their conditions.
The investment from The Rise Fund furthers its focus on supporting high-performing businesses that expand access and deliver demonstrably positive health outcomes for underserved and low-income demographics. The transaction is expected to close in July 2024, subject to customary closing conditions.
“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,” said Jason Langheier, MD, MPH, the CEO and Founder of Foodsmart. “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.”
