The maternal and neonatal health sector in the United States is experiencing a significant increase in investment and attention, with a focus on improving outcomes for mothers and babies. One such example is Kortny Feutardo, a doula who recently began working with Maryland Medicaid patients to provide care coordination and counseling. This move was prompted by delays in payments from managed care organizations, leading her to partner with Mae, a venture capital-backed company that facilitates payments for doula services.
The growing investment in maternal health is driven by the alarming maternal mortality crisis in the U.S. Government health plans for low-income Americans have expanded coverage of services proven to enhance the health of mothers and babies. This includes support from midwives and doulas, who offer a range of services such as perinatal care coordination, counseling, lactation support, and behavioral health screenings.
Venture capital firms like Khosla Ventures and Rock Health are increasingly investing in maternal health companies and technologies, anticipating sector growth and improved payment rates from both Medicaid and commercial insurance. In 2023, early maternal healthcare investments totaled $306.5 million, a significant increase from $38.1 million in 2018.
Midwife-led care has been shown to have positive impacts on health outcomes for Black women and their babies, who face disproportionately high maternal mortality rates. Investments in companies like Millie and Oula, which offer midwifery-led care and obstetrics services, have shown promising results in reducing preterm birth rates among diverse populations.
Despite the progress in maternal health investments, reimbursement issues remain a challenge for doula and midwifery companies. While some states have started reimbursing doulas through their Medicaid plans, commercial insurance mandates are lagging behind. This has led to a reliance on venture funding to sustain innovation and growth in the sector.
In conclusion, the increasing investment in maternal and neonatal health reflects a growing recognition of the importance of improving outcomes for mothers and babies in the U.S. While challenges such as reimbursement issues persist, the commitment to addressing the maternal mortality crisis and supporting diverse populations through innovative healthcare solutions is a positive step towards a healthier future for all.
