HeraMED Appoints US Growth Chief as Medicaid Cuts Force Strategy Shift
HeraMED faces a setback as Broward Health discontinues its HeraCARE platform amid Medicaid funding cuts, prompting a strategic pivot with new leadership and partnerships to accelerate US growth.
- Broward Health ends HeraCARE use despite positive clinical outcomes
- Medicaid budget cuts disrupt safety net hospital funding
- Aspire Health Innovations appointed to drive US commercialisation
- Jeff Garibaldi joins as US Chief Growth Officer with extensive healthcare experience
- HeraMED explores expansion into other international markets
Setback at Broward Health
HeraMED Limited (ASX: HMD), a pioneer in digital maternity care technology, has announced that Broward Health will discontinue its use of the HeraCARE platform. This decision comes despite the platform demonstrating significant improvements in maternal-fetal outcomes, including reductions in pre-term births, fetal demise, and hospital readmissions. Broward Health, a safety net hospital serving a largely Medicaid-dependent population, had deployed HeraCARE under a state grant aimed at supporting underserved communities.
The termination of this partnership is attributed not to clinical performance but to sweeping changes in the US healthcare funding landscape, particularly affecting Medicaid programs. With federal Medicaid budgets facing unprecedented cuts, estimated at around $70 billion annually, and reductions in Disproportionate Share Hospital payments starting April 2025, hospitals like Broward Health are under intense financial pressure.
Strategic Pivot in the US Market
In response, HeraMED is recalibrating its US market approach. The company has appointed Aspire Health Innovations, a respected healthcare commercialisation firm with a team of seasoned industry veterans, to accelerate its go-to-market strategy. Aspire’s expertise spans marketing, sales, and product development, providing HeraMED with critical support to navigate the complex US healthcare environment.
Complementing this partnership, HeraMED has brought on Jeff Garibaldi as Chief Growth Officer for the US. Garibaldi brings over 35 years of healthcare leadership, including experience leading multi-hundred-million-dollar exits and scaling value-based care solutions globally. His appointment signals HeraMED’s commitment to driving commercial growth and expanding its footprint across diverse US health systems beyond Medicaid-focused institutions.
Broader International Ambitions
Beyond the US, HeraMED is actively exploring expansion into other international markets characterized by stable healthcare policies and growing demand for maternity care innovations. This strategic diversification aims to mitigate risks associated with policy volatility in the US and tap into new growth opportunities.
Meanwhile, HeraMED is aligning its cost structure to support these strategic initiatives, ensuring operational efficiency as it pursues sustainable growth. The company is also collaborating with ANDHealth in Australia to bolster its commercialisation efforts in its home market.
Looking Ahead
While the loss of Broward Health is a notable challenge, HeraMED’s proactive adjustments, strengthening leadership, partnering with industry experts, and broadening its market focus, position it to navigate the evolving healthcare landscape. The coming months will be critical in assessing how effectively these moves translate into renewed commercial momentum and market penetration.
Bottom Line?
HeraMED’s strategic recalibration in the US and beyond will be a key test of its resilience amid shifting healthcare funding dynamics.
Questions in the middle?
- How quickly can HeraMED convert its US pipeline into revenue amid Medicaid funding cuts?
- What impact will Aspire Health Innovations and Jeff Garibaldi have on HeraMED’s US market traction?
- Which international markets is HeraMED targeting next, and what timelines are anticipated?
