We should be celebrating the biggest fundraising year ever for healthcare tech and instead where are we? Not at JP Morgan. Today on Health in 2 Point 00, we chat about the mind-blowingly big numbers for health tech funding this year—Startup Health reported $21.5 billion for the year, Rock Health $14.1 billion. On Episode 177, Jess asks me about Aspen RxHealth raising $23 million in a Series B for their online pharmacy network, Monument getting $10 million for alcohol treatment, Carrum Health raising $40 million for their centers of excellence play, and yet another mental health startup Valera Health raising $4.7 million. —Matthew Holt
Insurgents have stormed the Capitol and we’re still here to talk about health tech deals. On Episode 176, Jess and I discuss Optum acquiring Change Healthcare in a $13.5 billion deal, bringing it back to Jess’s interview with CEO Neil Crescenzo bout what Change Healthcare does with the connective tissue of big healthcare. Hinge gets $300 million in a Series D – this is valued now at $3 billion. Finally Liva Healthcare, which is like European Livongo, raises €24.5 million and Metronom Health gets $22.2 million for yet another CGM. —Matthew Holt
Today on Health in 2 Point 00, Jess and I chat about Haven finally closing its doors. On Episode 175, we cover Color raising $167 million growing fast as the major COVID tester in the Bay Area and 23andMe scoring $82.5 million. RapidSOS quietly raised another $51.2 million on New Year’s Eve, Fruit Street Health raises $22 million for chronic condition management, and finally Centene acquires Magellan for $2.2 billion. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
Arguably 2020’s hottest health tech startup, Olive (olive.ai) closed THREE funding rounds this year, totaling $450M and valuing the company at $1.5B. Backed by a “who’s who” of technology, healthcare, and health tech venture capital, Sean Lane, CEO, clues us in about just what makes Olive so damn fund-able. The company boasts a “healthcare AI workforce” that tackles all the back-office processes hospitals use to run their organizations. This is not sexy stuff — filing and tracking insurance claims, ordering inventory, managing suppliers, etc. What’s hot, though, is how Olive is able to automate these tasks (according to Sean, currently many of these processes are handled by spreadsheets and faxes), “learn” as she’s doing it, and create efficiencies and cost savings across all of Olive’s 600+ hospital client-base as she does. Could this be the end of “admin expense” in healthcare? If what Olive is currently doing isn’t enough, we dive deep into Olive’s strategic plan — ALL FIVE POINTS OF IT (!) — to learn what’s next. My favorite? Number 3. The one where Olive starts to INSTANT PAY CLAIMS to completely disrupt hospital cash flow.
Today on Health in 2 Point 00, Jess has me weigh in on Cityblock Health’s big raise of $160 million bringing their total up to 300 million to improve health for low-income patients. On Episode 174, Elation, which is Cityblock’s EMR as well as that for some other independent primary care clinics, raises $40 million and working their way into a tough market. Modern Health raises $50 million for the “fourth” pillar of care, providing another mental health platform. LeanTaaS raises $130 million, providing a digital front end for hospitals and smooth out patient access, in contrast to companies like Olive working on the backend. Finally, Well gets $40 million in a Series A using AI and behavioral economics to provide health information and coaching. —Matthew Holt
By JESSICA DaMASSA, WTF HEALTH
Last December, Express Scripts — now a part of Evernorth — became the first PBM to go to market with a digital health formulary. Basically, adapting the vetting, organizing, and pricing functions of a traditional medication formulary to the digital (health) age. Mark Bini, Chief Patient Experience Officer, spearheaded the effort, meant to alleviate the burden faced by Evernorth’s clientbase of 4,000 employers and health plans, who’s HR benefits teams want to make digital health solutions available to the 100+ million members of their health plans, but don’t have a frictionless, repeatable way to do so. As Mark puts it, “if you’ve seen one digital health startup, you’ve seen one.” And, for an HR benefits administrator whose inbox is inundated by digital health companies, the challenge of dealing with different levels of clinical validation, different data needs, different contracts, and, probably, most frustrating, different payment models that are often separated from their health benefit and pharmacy benefits, Evernorth’s Digital Health Formulary eases a real burden. So, a year in… how’s it going? Have Evernorth’s clients bought into more digital health solutions as a result of the formulary? What’s uptake been like among the populations they manage? And, how has this been working out for digital health startups? Mark gives us an update, talks through the details of the selection process, AND reveals what he’s got planned next. Spoiler: The evolution of the Formulary means adding more cohorts of digital health solutions more frequently, increasing the number of digital health solutions covered under drug benefits, getting a beat on longitudinal digital health engagement, and working out how to help consumers navigate all the various health tech options that are available to them.
By JESSICA DaMASSA, WTF HEALTH
Bayer G4A, the global life science company’s digital health innovation arm, held their splashy “Agents of Change” event last month to not only introduce their latest cohort of health tech partners, but to also demonstrate the pharma co’s commitment to digital transformation. The entire C-suite of Bayer’s Pharma division became a panel itself — marking the first time the full leadership team of a major pharmaceutical company appeared together to talk strategically about tech’s role in shaping the pharma business model of the future.
The rest of the program’s agenda teased out G4A’s priorities: consumer health, health disparities, women’s health, and investing. Matthew and I both moderated “star-studded” panels with health tech greats: he tackled health tech investment, ridiculous valuations, and advice for startups with a powerhouse crew of investors, while I led my women’s health panel past the usual talk of period-tracking and into a real push for a paradigm shift in thinking about what actually constitutes women’s health data. Rounding out the program were fascinating discussions about health equity and access led by Indu Sabiaya, and a ‘who’s-interviewing-who-here’ fireside about patient-centered tech with OneDrop’s Jeff Dachis and DiabetesMine founder Amy Tenderich, both entrepreneurs with diabetes who have a lot to say about how most tech misses the mark when it comes to grappling with patient needs in everyday life.
And… if you’re curious about what Bayer G4A actually invested in and who they decided to sign partnership agreements with, check out my exclusive WTF Health interviews featuring these companies by way of the playlist below.
Spoiler Alert: Not a single digital therapeutic.
What else could there possibly be for a pharma co to invest in? Watch and see. But, so you know a bit about what you’ll be getting into:
- Caria is women’s health startup focused on menopause
- Sweetch is using just-in-time-interventions linked to mobile data to help “outsmart” chronic diseases
- ONCARE is a care plan content management platform that lets any healthcare provider upload a care pathway that a patient can then follow via an app on their phone
- Decipher Biosciences is using genomic testing to disrupt the way prostate cancer is diagnosed and treated
- Elly is helping improve the quality of life for cancer patients and those with chronic disease by way of educational and motivational content delivered via voice technology
By JESSICA DaMASSA, WTF HEALTH
Food-as-Medicine startup, Epicured, looks and acts a lot like the consumer meal delivery startups booming during this pandemic (think Freshly, which was just acquired by Nestle for $1.5B) but with one important difference: all the meals are based on diets that have been clinically validated as treatments for chronic disease. The three year old company got its start in GI disorders, turning complex Low FODMAP diets, gluten-free diets, etc. into home-delivered, ready-to-eat dishes that patients with Crohn’s disease, Colitis, IBS, IBD, celiac, or other gastro conditions could actually integrate into their daily lives. (Just Google the list of restrictions on a Low FODMAP diet and imagine the lack of adherence over a 6-8 week period while trying to calm an IBS flare-up…)
Richard Bennett, Epicured’s CEO & co-founder, stops by to talk about why he believes this more convenient, yummy, and easy solution will not only continue to win the hearts of healthcare consumers, but why, ultimately, healthcare payors will look to invest more into innovation around nutrition, particularly as its proven to help with other, more common and costly conditions like diabetes, renal disease, and cancer. Backed in part by Mount Sinai (which not only invested in their seed round, but also lent their GI team to the co-design a special IBS menu), Rich let’s us know a bit about some yet-to-be-released clinical study results AND how Epicured has taken a page out of the “digital therapeutics playbook” by partnering with AbbVie to wrap their solution around one of the pharma co’s drugs as a way to improve medication adherence. Chicken Cacciatore wins over companion app any day!
Today on Health in 2 Point 00, we’ve got quite a diverse set of companies to cover. MedArrive, which is Dan Trigub’s company – the former CEO of Uber Health – raises $4.5 million. Jess also asks me about PointClickCare acquiring Collective Medical, connecting data from EMRs in the acute care space into their long term care solution (I interviewed both companies on THCB Spotlights here). Consejo Sano quietly raised $17.1 million for their patient engagement and communication solution for the Hispanic community, and FOLX Health raises $4.4 million to provide care to LGBTQIA+ folks. —Matthew Holt
Today on Health in 2 Point 00, we have a huge IPO coming up – JD Health, a Chinese company which has a valuation of $28 billion, could raise up to $4 billion in its upcoming IPO. On Episode 171, Jess asks me about Everlywell raising $175 million in a Series D for at-home testing, everyone’s favorite keto startup Virta Health raising $65 million bringing its valuation to a billion, Olive Health already putting their funding raise to good use by acquiring Verata Health, and dtx company Click Therapeutics raising $30 million. —Matthew Holt