Remote-Patient Monitoring Companies Dodge Medicare Shift—For Now

Good day. A proposed Medicare shift that would have undercut many companies in the remote-patient monitoring industry has been put on hold.

Remote monitoring helps physicians keep tabs on patients between visits through connected devices, such as blood-pressure cuffs. The industry took off during the pandemic and drew heavy venture investment.

The Centers for Medicare and Medicaid Services, concerned about fraud in the sector, in July proposed eliminating Medicare payment for remote-monitoring services from third-party vendors. It proposed only paying when a medical practice’s own staff provided these services.

But on Wednesday, CMS said it would delay this change until Jan. 1, 2029. That gives remote-monitoring companies time to propose to CMS measures that would curb fraud but maintain Medicare reimbursement for third-party services.

The uncertainty is unwelcome to remote-monitoring startups seeking to raise venture capital. Investors and acquirers will have the upper hand in negotiations until there is greater clarity about Medicare reimbursement.

Yet the best companies will adapt to any outcome, said Andrew Zengilowski, co-founder and chief executive of remote-care company CoachCare, which has been acquiring companies in this sector.

“If you can deliver clinical outcomes and reductions in total cost of care, there will be a payment model for your business,” he said.

Biotech ambitions. Do Anthropic and other frontier-AI companies have what it takes to be serious players in biotechnology?

AstraZeneca recently made a roughly $10 billion offer to buy Rhythm Pharmaceuticals, according to people familiar with the matter, a deal that would expand its portfolio of rare disease treatments. The U.K. pharmaceutical giant offered to pay $124 a share for the biotech last month, the people said. Rhythm specializes in treatments for metabolic conditions and severe obesity.

Singapore-based VC firm NSV on Monday announced the first close of its inaugural institutional fund at 70 million Singapore dollars, equivalent to $54.8 million, exceeding its initial target. The aim: Find promising opportunities in breakthrough therapies and emerging technologies across the U.S. and Asia. The fund has secured heavyweight backers, including government-linked entities such as Taiwan’s National Development Fund and Singapore’s EDBI. NSV, which operates in Singapore, Taiwan and the U.S., plans to draw on its network of advisers and venture partners to cash in on emerging trends.

A reorganization of Sequoia Capital was intended to make the storied venture firm “able to play offense” in a world of rapid, AI-driven change, partner Pat Grady said at the WSJ Tech conference Wednesday. Sequoia is closing its London office, merging its early-stage and growth investing teams and sunsetting two of its programs for fledgling startups, the firm said in a social-media post earlier Wednesday.

Grady, who was named “co-steward” last year along with fellow partner Alfred Lin, said the changes were designed to help its partners move quickly and focus on what’s essential. “You can’t be agile if you have a million things going on all over the place,” Grady said.

This newsletter was compiled by Brian Gormley, Matthew Strozier and Zachary Cole.

Share your tips, comments and questions: vcnews@wsj.com

The team: Matthew Strozier, Yuliya Chernova, Brian Gormley and Sarah Klearman.

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