Venture Capital Drives Growth in Maternal Health Services

Kortny Feutardo, a doula, is part of the increasing number of healthcare providers aiding maternal health through Medicaid. This sector has drawn significant venture capital investments, improving health outcomes for mothers and babies, particularly amongst Black women. Financial challenges remain due to insufficient reimbursement rates.

Kortny Feutardo, an experienced doula, began her journey with Maryland Medicaid patients in January, providing crucial care coordination and counseling. Feutardo's efforts reflect a broader trend of growing investment in maternal and neonatal health. Despite these advancements, payment issues persist, leading providers to collaborate with venture capital-backed companies like Mae.

Amid a worsening U.S. maternal mortality crisis, government health plans have extended coverage for critical maternal health services, benefiting low-income Americans. Venture capital firms are pouring funds into maternal health technologies and services, anticipating rapid sector growth and better payment rates from both Medicaid and commercial insurance. Investments in maternal healthcare hit $306.5 million in 2023, marking a 700% surge from 2018.

Maternal health innovations, such as Mirvie's RNA testing for pregnancy complications, hold promise for life-saving advancements. Midwife-led care has shown to improve health outcomes for Black mothers, who face higher mortality rates. However, Medicaid's inconsistent reimbursement for doula services remains a barrier, necessitating venture funding to sustain and expand these crucial health services.

(With inputs from agencies.)