Tomorrow Health Financial Model
Health-tech Startup Financials (Free Excel Download)
Software platform coordinating home medical equipment, supplies, and services between insurers, referring providers, DME suppliers, and patients.
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About this model
Tomorrow Health coordinates home medical equipment, supplies, and services among insurers, referring providers, suppliers, and patients. Its platform addresses a fragmented post-acute workflow where multiple institutional participants need accurate orders, fulfilment, and patient communication.
The company can earn platform or transaction fees as payers and providers route more orders through the network. Growth depends on partner adoption, orders coordinated, supplier conversion, implementation, service quality, and retention across the referral and fulfilment ecosystem.
The model forecasts payer and provider partners, orders coordinated, platform or transaction fees, supplier conversion, implementation, and retention. It includes integration and support costs, network operations, sales capacity, gross margin, working capital, operating cash flow, and runway.
A turnkey financial model
Live formulas, no hardcoded values
Outputs are driven by live formulas, so the workbook updates from its assumptions instead of relying on hardcoded results.
All assumptions in one tab
Inputs are clearly marked in the Assumptions tab and separated from calculations, making it clear what to change and what to leave intact.
Statements always balancing
For integrated-statement models, the balance sheet, cash flow, and supporting schedules tie through properly.
Distinct schedules for clarity
Debt, working capital, taxes, and cash flow can get messy quickly. We group calculations in clear schedules, not across disconnected tabs.
No hidden macros or external links
There are no unexplained external workbook links or macros to undermine auditability or portability.
Changes flow through the model
Update a key driver and see the impact carry through the forecast, financing, and return outputs. We never use hardcoded numbers in formulas.
About Tomorrow Health
home.tomorrowhealth.com
How to build a detailed financial model for Tomorrow Health
A complete walkthrough of the business, drivers, and assumptions behind the downloadable Tomorrow Health model - distilled from its pitch deck and publicly available information.
Product & value proposition
Tomorrow Health is a software platform that acts as the coordination layer for home-based care. It connects:
- Payors (health plans): get a managed network with quality standards, 15% savings on home-based care spend.
- Referring providers: digital ordering replacing fax/phone, 45% less time ordering and coordinating.
- DME suppliers: streamlined order processing, 60% less time processing orders.
- Patients: concierge Care Advocates, 95% on-time care starts vs. 50% industry average.
Core categories managed: durable medical equipment, recurring supplies, home infusion, respiratory therapy, remote patient monitoring.
Market
- DME market: $75B current
- Home Health Services market: $110B current
- Remote Patient Monitoring market: $20B current
- Combined addressable market (three overlapping segments): ~$205B (note: overlap between segments not quantified)
- Demand signal: 91% of health plans seeking programs to move care to the home in 2022
Revenue model
Not explicitly stated in deck. Based on context:
- Primary customer is the health plan (payor); platform is likely sold as a per-member-per-month (PMPM) contract or a percentage-of-spend fee against managed DME/home-care claims.
- No pricing page, no contract value, no PMPM rate disclosed.
- Pilot / anchor customer: Geisinger Health Plan (550,000+ covered lives, 5,000+ referring providers, 180+ in-network suppliers).
Traction & metrics
- Total funding raised: $32.5M
- Anchor customer: Geisinger Health Plan - 550,000+ patient lives covered, 5,000+ in-network referring providers, 180+ in-network suppliers
- On-time care starts with Tomorrow Health: 97% vs. industry average 50%
- Referring provider time reduction: 45%
- Patient satisfaction score: 9.5 (out of 10?) vs. industry average of 1 out of 5 stars
- CSAT Score: 90+ over last 12 months
- Patient NPS: 95+
Competition / moat
Not explicitly covered as a standalone slide. Implied moats:
- Network effects: proprietary network of 32,000+ home-based care providers; Geisinger network with 180+ vetted in-network suppliers.
- Quality standards layer that fragmented market currently lacks.
- Care Advocate model (human-in-the-loop concierge) producing 95+ NPS.
- Advisory board depth: former CEOs of United Healthcare, Tenet, Humana; former HHS deputy secretary.
Team & funding ask / use of funds
Team (slide 3):
- Vijay Kedar - Co-Founder & CEO; former Senior Director of Care Innovation, Oscar Health
- Krishna Rajagopalan - Engineering; former Director of Engineering, Amazon
- Shivani Stadvec - Marketing; former Director of Growth and Retention, Flatiron
- Drew Howard - Product; former Head of E-Commerce and Growth Product, WeWork
- Anna Lenhardt - People; former VP of People, Hippo Insurance and Oscar Health
- Simon Maas - Insurance Operations; former Director of Operations, Oscar
- Kevin Rath - Customer Experience; former Head of CX, Warby Parker
- Eric Parnon - Business Development; former Director of BD, Signify Health
Investors: Andreessen Horowitz, Obvious Ventures, Rainfall, Box Group; angel founders from DoorDash, Flatiron Health, PillPack, Stripe, Quartet Health.
Total raised: $32.5M.
Recommended financial model
- Archetype + why: Health-plan SaaS / PMPM managed-care model. Tomorrow Health's value unit is a covered life (member) managed through its platform for a health plan. Revenue scales with number of health plan contracts × covered lives × PMPM rate (or % of home-care spend under management). This is structurally a B2B SaaS/managed-services model, not a transactional DME marketplace - the payor relationship is the revenue lever.
- Forecast horizon & granularity: 5-year annual model (Year 1–5), with Year 1 broken into monthly to capture ramp of the first 2–3 health plan contracts.
- Key drivers & assumptions:
- Number of health plan contracts signed per year
- Average covered lives per health plan customer]
- Penetration rate (% of covered lives who use home-based care and flow through platform)
- PMPM rate (revenue per managed member per month)
- Alternatively model as % of home-care spend under management, so a share-of-savings arrangement is plausible]
- Care Advocate headcount ratio to active patient caseload
- Gross margin
- CAC per health plan
- Churn
- S&M % of revenue
- G&A % of revenue
- R&D / Engineering
- Scenarios (Base / Bull / Bear - which variables flex):
- Base: 2 new health plan contracts/year, 300K avg lives, 8% penetration, $4 PMPM
- Bull: 4 new contracts/year, 500K avg lives, 12% penetration, $6 PMPM; faster Care Advocate leverage
- Bear: 1 contract/year, 180K avg lives, 5% penetration, $3 PMPM; extended sales cycles
- Required sheets / outputs:
- Assumptions - all drivers above with scenario toggles
- Health Plan Pipeline - contracts signed, ramp schedule, lives under management
- Revenue Build - PMPM × penetrated lives, by cohort/contract
- Headcount Plan - Care Advocates, engineering, sales, G&A
- P&L (Income Statement) - Revenue, COGS (Care Advocates + platform costs), Gross Profit, S&M, R&D, G&A, EBITDA
- Cash Flow & Runway - burn rate, cash balance, months of runway vs. current raise
- KPI Dashboard - lives under management, PMPM, gross margin %, NPS, on-time care start rate
Frequently asked
Is the Tomorrow Health financial model free?+
Yes. The Tomorrow Health model is a free Excel (.xlsx) download with live formulas. Sign up with your email and the workbook is yours to keep, review, and edit.
What's included in the model?+
A 5-year monthly forecast with P&L, cash flow and runway, valuation (exit multiple plus a DCF cross-check), MOIC/IRR returns, and unit economics, with live formulas throughout.
How was this model built?+
It was built from Tomorrow Health's pitch deck and publicly available information, then structured to investment-banking standards as a fully editable Excel model.
Can I change the assumptions?+
Yes. You can change assumptions and the live formulas will recalculate in the downloadable Excel model.
Have more financial modelling questions? Contact us
Created by ex-finance professionals
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