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Change Healthcare’s CEO on Payers, Providers & The New Healthcare Economy

By JESSICA DaMASSA, WTF HEALTH

From his vantage point at the helm of one of healthcare’s biggest IT infrastructure companies, Change Healthcare’s President & CEO, Neil de Crescenzo, has an unrivaled perspective at how covid19 has impacted hospital systems and payers. His business builds the “connective tissue” that not only supports the administrative management and patient engagement aspects of “Big Healthcare,” but it also literally helps those organizations make money, processing about $1.5 Trillion in claims each year. So, what’s he seen so far in 2020? And what’s ahead for 2021? Neil stops by to talk about current challenges facing healthcare provider orgs and payers — and what’s ahead in the “new” healthcare economy where “change” is the only constant. From HHS’s new interoperability rules to telehealth and the more dispersed healthcare system it will inevitably create, we dive into all things future of health including the details behind Change’s two recent health tech acquisitions (each over $200M), what Neil thinks about the Teladoc-Livongo merger, and how digital health startups have an unprecedented opportunity to help expand the healthcare system beyond its traditional footprint.

Catalyst @ Health 2.0 Launches Rapid Response Open Call with Grapevine Health

SPONSORED POST

By CATALYST @ HEALTH 2.0

Attention digital health innovators! Do you have innovative text message-based health tech solutions that can disseminate health-focused video content? Apply to the Grapevine Health Rapid Response Open Call! 

As the COVID-19 pandemic continues, the importance of health literacy and communication is more apparent than ever. Catalyst @ Health 2.0 is proud to host a Rapid Response Open Call (RROC) in collaboration with Grapevine Health. Five semi-finalists will receive $1k each and will have the opportunity to demo their technology. A grand prize winner will receive $5k and the opportunity to collaborate with Grapevine Health! 

Do you have a solution that can fit this need? Apply HERE today! Applications close 8/27.

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THCB’s Bookclub, August 2020 – UnHealthcare: A Manifesto for Health Assurance

By JESSICA DAMASSA & MATTHEW HOLT

The THCB Book Club is a discussion with leading health care authors, which will be released on the third Wednesday of every month. And this is the first one!

We kicked off with the new book from Hemant Teneja (VC at General Catalyst who has been writing many big checks lately) and Stephen Klasko (CEO at Jefferson Health System and one of the most unusual hospital system bosses in America). Their book is called UnHealthcare: A Manifesto for Health Assurance which is a how-to for creating a platform for a revolutionary future for health care. You can go buy the book here (eVersion only $6!) It’s an easy read (about 130 pages on your iPad “Books” app).

UnHealthcare is about a new concept called Health assurance– which Tenaja says is “an emerging category of consumer-centric, data-driven healthcare services that are designed to bend the cost curve of care and help us stay well.”

Sitting in on the interview because we can’t get rid of him was Glen Tullman from Livongo (Just kidding, Glen!). He weighed in on how this connects with his new idea of Consumer Directed Virtual Care and the Teladoc-Livongo merger.

This was a great discussion. We had them explain the concept, and pushed them pretty hard on how realistic it was! And you can see it in the video below (and the podcast version will be in our iTunes & Spotify channels very soon)

In September the THCB BookClub will feature Jane Metcalfe with her 2020 book NEO.LIFE

Health in 2 Point 00, Episode 144 | Magical Forests, PsychCentral’s History, & More Funding Rounds

On Episode 144 of Health in 2 Point 00, Matthew has gingerly emerged from his office and gone into a Magical Forest! Jess asks me about Healthline media acquiring PsychCentral, the first-ever online psychiatry support group and I explain the history of how it has been passed around from Corporates to PE firms, Bridge Connector getting 25.5M for its interoperability platform, Cecelia Health raising $13M for its chronic condition management service, and Reify closing $30M to help pharma companies run clinical trials from home. Also, we had our first book club discussion with authors Hemant Teneja (VC at General Catalyst) & Stephen Klasko (CEO at Jefferson Health System) on their book “UnHealthcare: A Manifesto for Health Assurance”. Glen Tullman also made a special guest appearance during the discussion. The episode will be released soon!Matthew Holt

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An Epic Fight for the Metaverse

By KIM BELLARD

 You might have missed it amongst all the headlines about the U.S.P.S., the 2020 elections, and, of course, that little thing we call the pandemic, but Fortnite got kicked off Apple’s App Store (and subsequently Google Play).

I’m not a gamer, but I am fascinated by gaming, because, as Steven Johnson put it, “The Future is where people are having the most fun.” Tim Sweeney, the founder and CEO of Epic Games, Inc., which makes Fortnite, seems to be having a lot of fun. And he thinks the future is the Metaverse.

Healthcare, take note.

The tech giants were reacting to Epic allowing “permanent discounts” on developer fees for in-game purchases made directly, rather than going through Apple or Google. Developers thus avoid the 30% commission charged in those Stores. Mr. Sweeney has been railing about the commission level for some time, leading to the recent decision.

Apple tried to justify its action:

Today, Epic Games took the unfortunate step of violating the App Store guidelines that are applied equally to every developer and designed to keep the store safe for our users. As a result their Fortnite app has been removed from the store. Epic enabled a feature in its app which was not reviewed or approved by Apple, and they did so with the express intent of violating the App Store guidelines regarding in-app payments that apply to every developer who sells digital goods or services.

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Health in 2 Point 00, Episode 143 | Lumeon, Nurx, Thirty Madison, & More

On Episode 143 of Health in 2 Point 00, we have all the alphabets in the raising series represented ;)! Jess asks me about Lumeon raising a $30M Series D for their care orchestration centers, Nurx raising a $22M Series C to develop out its online pharmacy presence, Thirty Madison getting $47M and Johnson & Johnson is an investor this round, Bodyport closing an $11.2 M Series A for their weighing scale platform that can detect early cardiovascular disease, and Kumanu raising a $3M Series A to grow out its platform that helps people figure out their lives’ purpose.

Be sure to check out our talk from the 7 competitor CEOs to Teledoc & Livongo who weigh in about the $19B merger. If you want to join our book club, we are reading UnHealthcare: A Manifesto for Health Assurance, which is a how-to for creating a platform for a revolutionary future for healthcare, by Hemant Teneja (VC at General Catalyst) and Stephen Klasko (CEO at Jefferson Health System). We will have a video on our discussion with the authors which will be published on the 3rd Wednesday of every month! —Matthew Holt

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I Cured My Patient, But What Was His Diagnosis?

By HANS DUVEFELT

He cancelled his followup appointment because he was feeling fine. He didn’t see the point in wasting a Saturday to come to my clinic when he had lawns to mow and chores to do.

Less than two weeks before that he was sitting on the exam table in my office, again and again nodding off, waking up surprised every time his wife prodded him. The stack of printouts from the emergency room illustrated all the normal testing they had done.

He had experienced a brief episode of numbness in the left side of his face and felt tired with just a slight headache. When I saw him the headache was a bit more severe in the back of his head and down the right side of his neck. But his neck wasn’t stiff.

His blood sugar was 87, normal for most people, but this man had a history of diabetes although his blood sugars had steadily improved over the past year. I told him to stop all his diabetic medications although I don’t think he took notice. His wife said she would make sure he stopped them.

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Teladoc & Livongo — The Health Techerati Weigh-In

Six competitor CEOs and one ex-CMO discuss the biggest-ever digital health merger

By JESS DAMASSA & MATTHEW HOLT

It was the news that stunned the world of health tech. And us! So we had seven of Teladoc and Livongo’s biggest competitors weigh-in on what the merger means for telehealth, digital health, the future of health care delivery–and their businesses! You’ll hear from the CEOs of Omada, Ginger, One Drop, Vida, Lark & Cloudbreak, with some spicy commentary from Lyle Berkowitz who was, until recently, CMO at MD Live. From reaction to the merger to speculation about how this will impact the future of digital health funding, fasten your seat belts for some impactful and fun infotainment about all the implications of the deal.

The Story of an American Mask Distributor

By SAURABH JHA

Seven weeks before President Trump declared COVID-19 a federal emergency heralding the economic lockdown, Jesse’s customers began cutting their orders. Jesse sells garments and cotton, imported predominantly from India, to wholesalers and retailers, big and small, in malls across the North East corridor.  His business had a good January. December was like any December. But February was different.  His customers, reassuring him that it wasn’t personal, were predicting a falling demand for their products because of COVID-19. They may be over reacting, but better shortage than glut, they felt.

Jesse, who has no medical background, had heard of a virus which quarantined cruise ships, but nothing seemed foreboding back in February. He had tuned out the President, who was being his usual clownish self. It was business as usual in Manhattan, where he lives. He received reassuring messages from public health figures about the novel coronavirus. New York City’s mayor was particularly upbeat, urging New Yorkers to mingle with even more vigor.

Jesse didn’t know how to reassure his customers. A week later, more customers cancelled their orders. By middle of February, the orders halved. Being a businessman, not philosopher, it mattered not to him why his customers had seemingly overestimated COVID-19’s threat. What mattered is that they had. Since his business operated on small margins, the reverberations could be substantial. The first order of the day was reducing the output of his factory in India which was running on all cylinders.

The second order of the day was survival. If his customers’ fears came true, his business would be destroyed. Jesse had no qualms accepting government bailout. But this was long before the federal government announced relief for businesses. The virus had yet to strike Italy. COVID-19, like Chengiz Khan, seemed to prefer the eastern perimeters of the Silk Road.

In his culture, Jesse Singh is an American Sikh hailing from the Punjab – there’s a simple rule. When customers don’t want a certain product, find something else to sell. His family motto is that you should love the act of selling, not the product being sold (the motto sounds better when said by a Punjabi in Punjabi).  

Another Punjabi rule, technically not a rule but part of their cultural RNA, is that Punjabis don’t sit idle. During the partition of the subcontinent, thousands of Sikhs arrived at Delhi train station hungry, battered, penniless, and homeless, after losing their homes and families to the mobs. After feeling sorry for themselves for a couple of days, they started selling tea and biscuits on the railway platforms.

If the panic from coronavirus could shut old businesses it surely could open new ones, Jesse thought. A soaring demand for personal protective equipment (PPE) seemed obvious. Since N-95 supply was regulated, he threw his weight behind surgical masks, believing that they’d be demanded by healthcare workers and eventually the general public. He decided to import a small batch on a trial basis.

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Take Your Mom to Work

By KIM BELLARD

If you are a working mom, or married to one, or simply know one, you know that it is tough to balance a job and raising a child even under ideal circumstances.  Even if she has a supportive spouse, chances are that it is the mom who ends up providing the most child care, and whose career it impacts the most.

But, of course, these are not ideal circumstances.  Prior to the pandemic, women had made great strides in the workforce; more women had payroll jobs than men, for example (although they continued to be paid less for them).  Those gains quickly came crashing down once the pandemic hit.  It is believed to be the first time that job and incomes losses have hit women harder than men.  Some are calling our pandemic-driven economic downturn a “shecession” as a result.   

That’s bad enough, but the even bigger danger is that the pandemic could set back women’s careers for a generation. 

recent study by Collins, et. alia confirmed what most might have guessed: in the wake of the pandemic, women are more likely than men to have reduced their work hours to take on additional child care responsibilities due to school/daycare closing — four or five times as much.  

The study found that:

Scaling back work is part of a downward spiral that often leads to labor force exits—especially in cases where employers are inflexible with schedules or penalize employees unable to meet work expectations in the face of growing care demands.  

We are also concerned that many employers will be looking for ways to save money and it may be at the expense of mothers who have already weakened their labor market attachment.

Even more worrying, lead author Caitlyn Collins, a professor at Washington University, says: “Our findings indicate mothers are bearing the brunt of the pandemic and may face long-term employment penalties as a consequence.”  

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