HCAP IV CAse Study:  Betternight

BetterNight is a healthcare technology company that streamlines the process of diagnosing, treating, and providing care management for sleep disorders, including sleep apnea. BetterNight leverages telemedicine, home sleep tests, and sleep therapy to increase accessibility, affordability, and adherence of sleep apnea care to improve patient outcomes.

Sleep disorders affect between 50 to 70 million Americans¹¹, and 80% of people experiencing sleep apnea in the U.S. have yet to be diagnosed. It is a challenge for individuals to get diagnosed and receive treatment for sleep disorders as the typical process takes an average of 4 months and can cost $3,500 to $7,800¹². Only 33% of patients ultimately adhere to their prescribed treatment for sleep apnea¹³. Through BetterNight’s care, patients receive a diagnosis within two weeks, pay on average $1,800 for treatment, have significantly higher treatment adherence of 67% at one year, and report 99% satisfaction levels.

BetterNight was founded in San Diego, CA in 1995 and pioneered the use of home sleep testing processes in Southern California to help individuals sleep better at night. In 2019, the company began to explore raising capital to scale nationally. The HCAP team stood out from other investors with its track record and established relationships within healthcare, and its thoughtful approach to helping BetterNight scale. HCAP’s focus on job quality aligned well with BetterNight’s core values and practices, and HCAP was flexible in structuring the transaction to meet BetterNight’s needs. In August of 2019, HCAP invested a combination of mezzanine debt and private equity to grow the BetterNight platform.

*BetterNight Contributes to Solutions by (1) improving sleep apnea diagnosis and treatment so that patients experience improved health outcomes (SDG 3.8), and (2) partnering with HCAP on the Gainful Jobs Approach™ to strengthen workplace practices so that workers experience improved job quality (SDG 8.5).

**BetterNight Benefits Stakeholders by (1) employing women in leadership roles and supporting a majority woman workforce of sleep therapists and clinicians in advancing in their careers (SDG 5.5), (2) helping sleep therapists and clinicians earn more income and benefits (SDG 10.1), and (3) employing a workforce that is majority people of color and majority women and supporting equal opportunity by encouraging women, people of color, the disabled, and veterans to apply for jobs (SDG 10.2).

Value Creation Highlights

When asked to report on how HCAP has contributed to value creation, BetterNight President Bretton Lane noted the following initiatives and outcomes:

BetterNight President, Bretton Lane, (left) at the company’s annual core values luncheon.

“We appreciate HCAP very much as partners in this journey that we’re on. We have a significant growth plan and we feel poised to be able to really scale and grow in a meaningful way together.”

– Bretton Lane
   President, BetterNight