Today on Health in 2 Point 00, the funding reports are out: Rock Health is saying $14.7 billion for the first half of the year, and Startup Health is saying $20.1 billion. Those numbers are pretty much what the numbers were for ALL of 2020. Now onto some deals: on Episode 221, Jess asks me about Novacardia raising $57 million for its cardiology practice management business. Wellthy raises $25 million, bringing its total up to $50 million – this is a caregiving navigation concierge firm aimed at employers. Osso VR raises $27 million in a Series B, less than a year after closing their A, working on virtual reality for practicing surgery. Finally, Form Health raises $12 million in a Series A for its obesity telehealth platform. —Matthew Holt
Today on Health in 2 Point 00, I’m cheering England’s win against Germany this week – but Jess keeps us on track with health tech deals. Olive gets another $400 million, bringing their total up to $902 million – with $802 million of that since March 2020. Tendo Systems gets $50 million in a Series A, working on communication between providers and consumers. General Catalyst strikes again, this time in a round with SWORD Health raising $85 million in a Series C, bringing their total to $135 million. This is an MSK company, with a lot of good investors here. Finally, Ro buys Kit an at-home testing company – how does Hims stack up now? And, in case you missed it, Sharecare hits the NYSE today – get the scoop from Jess’s interview with their CEO yesterday. –Matthew Holt
Today on Health in 2 Point 00, Jess claims that I am to blame! But for what?? On Episode 219, Jess and I talk about home care software company AlayaCare raising $225 million CAD. Next, Health Catalyst acquires Twistle for $104 million and Hims acquires teledermatology company Apostrophe. Finally, Spiras Health raises $14 million for at-home chronic care management. —Matthew Holt
On Episode 218 of Health in 2 Point 00, it’s a big week in digital health for IPOs. Today Jess asks me about Bicycle Health’s $27 million Series A, bringing the substance use disorder startup’s total to $32.3 million. NexHealth, which is like Shopify for doctors, gets $31 million in a Series B, Stork Club raises $30 million in a Series A, and DrChrono raises $20 million for its EHR. Finally, Pear Therapeutics is SPAC-ing out with a $1.6 billion valuation. As we all know, DTx is my favorite category of health tech so tune in for what I have to say about this one. —Matthew Holt
Today on Health in 2 Point 00, I haven ‘t been fired yet – so I’m taking over this episode. On Episode 217, there’s been a lot going on in the digital health world, including the biggest IPO in health tech ever with Bright Health’s $14 billion valuation. Speaking of IPOs, 23andMe went public yesterday with a $3.5 billion valuation. Zus Health gets $25 million in a Series A with Jonathan Bush as CEO. Pill Club raises $49 million getting contraceptives to women online, similar to Nurx. Finally Brightline gets $72 million, this is a child mental health company; they take family prep, family counseling psychiatry, and coaching and put it all together. —Matthew Holt
Each week I’ve been adding a brief tidbits section to the THCB Reader, our weekly newsletter that summarizes the best of THCB that week (Sign up here!). Then I had the brainwave to add them to the blog. They’re short and usually not too sweet! (And yes, this week’s is a tad late!) –Matthew Holt
In this week’s health care tidbits, you may be wondering what happened to health policy under Joe Biden. He said no to Medicare for All because instead he was going to create a public option and lower the Medicare age to 60. Yet both those two policies seem to have vanished into the night. Presumably that’s because they think they’re a hard political sell and maybe that’s right. But why? This past week a massive study of American consumers shows that Medicare recipients are much happier with their experience than people with employer-based coverage. And employer based coverage is no better than Medicaid! To wit, the study showed:
Compared with those covered by Medicare, individuals with employer-sponsored insurance were less likely to report having a personal physician and were more likely to report instability in insurance coverage, difficulty seeing a physician because of costs, not taking medication because of costs, and having medical debt. Compared with those covered by Medicare, individuals with employer-sponsored insurance were less satisfied with their care.
Compared with individuals covered by Medicaid, those with employer-sponsored insurance were more likely to report having medical debt and were less likely to report difficulty seeing a physician because of costs and not taking medications because of costs. No difference in satisfaction with care was found between individuals with employer-sponsored private health insurance and those with Medicaid coverage.
I guess the new AHIP slogan is, “we’re just as good as Medicaid!” But you have to wonder, why are the rest of us being forced to consume an inferior product?
Today on Health in 2 Point 00, Jess is trying to replace me with the other Matthew Holt. But on Episode 216, I am still around to talk about some deals. First, Datavant acquires Ciox Health in a $7 billion deal, aiming to create the nation’s largest health data ecosystem. Next, Avenue Health is a new company that has just been launched, working on seamless, end-to-end data integration and blockchain, and AllyAlign Health raises $300 million as a new Medicare advantage plan. Finally, Cerebral raises $127 million – this is like a Ro or Hims but specifically for mental health. —Matthew Holt
Amazon Cares already has customers, Clover has become a meme stock, Transcarent has got a Series B that they closed already, and OneDrop has hit 25 billion biometric data points – what the hell is going on in digital health? Today on Health in 2 Point 00, we still have lots of deals to cover. Monogram, an end-stage kidney disease company, raises $160 million. LetsGetChecked raises $150 million in a Series D – all of these at-home testing companies are getting a push because of COVID. Next, Lenus raises €50M in a Series A, making it the biggest ever single A round in Denmark. Transcarent gets $58 million in a Series B already, and Ada Health raises $90 million for their symptom assessment chatbot. —Matthew Holt
Today on Health in 2 Point 00, Jess pokes fun at me because my primary care provider has acquired a Medicare provider – One Medical buys Iora Health for $2.1 billion in stock. This deal is curious because these are two very different organizations. Next, HumanFirst (formerly Elektra Labs) raises $12 million in a Series A, bringing their total to $15 million, working on distributed clinical trials. Medallion raises $20 million in a Series A to address barriers for digital health providers around state licensing rules, and Aunt Bertha raises $27 million working on the social determinants of health and getting social care resources to patients. Finally, Grand Rounds and Doctor on Demand acquire Included Health, an LGBTQ+ focused care navigation platform. —Matthew Holt
Each week I’ve been adding a brief tidbits section to the THCB Reader, our weekly newsletter that summarizes the best of THCB that week (Sign up here!). Then I had the brainwave to add them to the blog. They’re short and usually not too sweet!–Matthew Holt
In this week’s health care tidbits, I can’t quite leave the $3.5bn Babylon Health SPAC investor document alone. Yes, it’s crazy but not as crazy as you might think. Essentially it’s saying that it’s going to be a better tech enabled version of Oak Street or Agilon. Babylon has put less effort into the medical group management side of the puzzle than Oak Street or Agilon but it hasn’t done nothing. It’s been running GP clinics in the UK for years and now has two Medicare Advantage networks in California w 52k lives. It only did $79m in rev in 2020 but that was presumably mostly in software. They’re aiming for $320m in rev in 2021 (presumably mostly from the medical groups) & $710m in 2022.
In comparison Oak Street’s forecast is $1.3bn in 2021 and $2bn in 2022. So Babylon is shooting to be 25% of its size. Today’s Oak Street market cap is ~$14,5bn, so 25% of that is close to the $3.5bn Babylon is trying to get investors to pay.
Then there’s the story, which is that the bot tech can reduce all types of patient health spend which will increase the margin. Of course their actual mileage may vary. I do love the chart from their investor prez, which not only assumes that they can reduce medical spend abut also that they get to keep those savings long term. I’m not sure the “Partner” in the chart below will be as convinced.
This was the cause of much hilarity on this week’s #THCBGang.
As I said crazy but not completely crazy. And you never know, maybe better care?