HRS: Maturing to Align with Industry Tailwinds

Health Recovery Solutions (HRS) provides telehealth and remote patient monitoring (RPM) solutions to help healthcare providers and payers reduce readmissions, optimize clinician workflow and improve patient satisfaction. LLR invested in HRS in April 2021, recognizing that the company’s founders had built a strong product and experienced dramatic growth following the massive tailwinds of telehealth and RPM.

Initial strategy sessions with LLR’s Value Creation Team (VCT) revealed that while HRS was a leader in its space, the company needed to build out significant infrastructure to establish a more mature foundation for future growth. The VCT partnered with HRS across nearly every critical function of the business, applying a coordinated approach from strategic planning to leadership coaching to hiring.

A highlight of this partnership was the transformation of HRS’ go-to-market (GTM) and product organizations. The initial strategy work, followed by a deep-dive GTM assessment, revealed opportunities to realign the GTM function with the product roadmap, bring marketing’s pipeline contributions in line with headcount and budget, and redesign sales and marketing operations.

It takes time, effort and resources to source the best and brightest talent, but most growth-stage companies don’t have those to spare. The great thing about the LLR Growth Accelerator Program is it gives us leverage and access to candidates in top MBA programs who are ready to roll up their sleeves and help companies attack their biggest opportunities.

– Jason Comer, CFO of Health Recovery Solutions

To begin, LLR ran collaborative workshops with the HRS executive team to define its product management strategy and structure, shift from reactive development to roadmap discipline and establish a process for enabling customer success. Following the hiring of a new CTO, they were also able to retire significant technical debt and merge multiple code branches, positioning the company to scale its customer base efficiently and integrate M&A.

A pricing growth initiative also focused on achieving uplift through packaging, tiering based on customer segments and needs, and list price increases based on competitive advantages.

At the same time, LLR and HRS worked together to hire a CMO and deliver on projects to increase inbound quality and velocity, and assign specializations within the marketing organization. As a result, HRS experienced a 50% increase in average quarterly pipeline generated from marketing, a 79% increase in MQLs, and 120% increase in demo requests. With additional reorganization of its sales organization to a regional/end market coverage model and improved forecasting and reporting, HRS bookings increased 94% over the previous year.

Overall, the collaborative efforts in the first 18 months of partnership between LLR and HRS helped increased gross margins from 61% to 68%, and HRS found itself cashflow positive for the first time in Q2 2022.

HRS also took advantage of LLR’s Growth Accelerator Program (GAP), which recruits and places high-potential recent MBA graduates to help drive impact against a portfolio company’s growth strategy. Through LLR GAP, HRS hired a Vice President of Strategy & Operations, who, in her first year, helped to establish critical operational metrics and the company’s annual operating plan.

Case studies presented herein do not reflect a complete list of LLR investments and are provided for informational purposes only. Certain statements about LLR made by portfolio company executives herein are intended to illustrate the work of LLR’s Value Creation Team with such portfolio companies. Such portfolio companies are controlled by investment vehicles managed by LLR. Portfolio company executives were not compensated in connection with their participation, although they generally receive compensation and investment opportunities in connection with their portfolio company roles, and in certain cases are also owners of portfolio company securities and/or investors in LLR-sponsored vehicles. Such compensation and investments subject participants to potential conflicts of interest in making the statements herein.