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Inside Cano Health’s SPAC IPO & Tailoring Medicare Advantage Primary Care for the Latino Market

By JESSICA DaMASSA, WTF HEALTH

Healthcare SPAC-trackers interested in placing bets on value-based primary care for the lucrative Medicare Advantage market will love hearing Cano Health’s CEO Marlow Hernandez dive into the details behind his company’s $4.4B valuation and 7,000% three-year growth rate. Cano Health’s clinics provide “primary care plus” for 100,000 seniors, targeting the particular needs of underserved Latino senior markets in Florida, Texas, Nevada, and Puerto Rico. With $1.4B in revenue, Cano’s business looks similar to publicly-traded Oak Street Health – which boasts a market cap of $14B.

Hoping to replicate what they’ve started in Florida (where Cano Health boasts a long-standing relationship serving Humana’s Medicare Advantage members) the company is building partnerships with major national MA plan providers like UnitedHealthcare, Anthem, Centene and Devoted and scaling up its network of more than 550 primary care physicians. A surprising component of the business plan? Cano Health’s health tech stack! Marlow explains how the care delivery co developed its own practice management software for care navigation, billing, and back-office admin and is already licensing it to more than 1,000 independently owned medical centers.

Tune in for more on the scale-up and scale-out plans for Cano Health before it starts trading at $CANO. The planned merger with Jaws Acquisition Corp (the SPAC led by Barry Sternlicht of Starwood Capital fame) is “imminent.”

Crossover Health’s CEO on Next Move: Private? Public? With a Payer??

By JESSICA DaMASSA

What’s the move for Crossover Health? Looking past the virtual-first primary care co’s $168M Series D, CEO Scott Shreeve gets grilled on the long-game. Is their future private? Or public? As “THE” primary care clinic for Amazon employees, rumors have swirled about a potential acquisition for the better part of a year. But now, with the launch of Amazon Care, does Crossover stand a better chance of being acquired – or being axed? Scott’s explanation of a model that uses small, in-person facilities as “confirmatory centers” to compliment virtual care does sound awfully “Amazon-y,” but it also sounds like a very fundable model for public market investors. A Crossover IPO has also been a long-standing rumor as well, perpetuated by the public market filings of OneMedical, Oak Street Health, and, now, VillageMD. A little extra fuel has been added to the fire by big-money raises among still-private competitors Iora Health and Forward. Does the fact that Crossover’s Series D includes a fresh crop of funders – a group of “crossover investors” no less – that back a wider spectrum of startups and industries foreshadow anything? How about the fact that Crossover is launching a product with a PAYER? What does this new offering, that unites payment model and care model into one market-friendly bundle, foretell about the types of clients Crossover is aiming to serve? Pick this interview apart, health tech friends! All guesses are fair game!

The Parallel Realities of Health Care: Ratio and Intellectus

By HANS DUVEFELT

Every patient is unique, with some common basic and measurable features and parameters. For a couple of decades now, healthcare has professed to be patient centered. But the prevailing culture of “quality” (and the reality of getting paid for what you do) has us spending at least half our time documenting for outsiders, who are non-clinicians, the substance and value of our patient interactions. That means our patients get half of our attention and others get half.

But of course, if you really wanted to be patient centered, you’d have to ask what patients actually care about, like their blood pressure or their cholesterol, their anxiety or their sore knees. Their answers may not align with the payers’ priorities. And then what…

Parents raise their children and never have to file any reports on how they do it. I believe clergy can still counsel their parishioners without filing reports. But doctors, nurses, nurses aides and physical therapists are trapped in the tyrannical dichotomy of “If you didn’t document it, it didn’t happen”, which actually forces us to do less for our patients just so we will have time to document what we did do. We are, to varying degree, robotniks in a big, inhumane corporate and federal healthcare billing machine these days.

Perhaps the most striking example of the micromanaging and patient-uncentered mandates we are subjected to is the Medicare Annual Wellness Visit: Miss one thing, like offering HIV screening to 80 year old devout French speaking, monogamous Catholics in Van Buren, Maine and risk getting your payment retracted. But we are not mandated to ask about personal life goals or how to balance seniors’ independence with reliance on their children.

Which is more real? The work we do, face to face or even screen to screen, behind closed doors with our patients, or the EMR documentation we produce as a result of those encounters? I know many providers generate voluminous notes that don’t reflect in any way what happened in the visit. That is where the money is.

Right now I am reading a Swedish book by philosopher Jonna Bornemark, titled (my translation) RENAISSANCE OF THE UNMEASURABLE – battling the pedants’ world domination. Much of it is about how the professions of caring for others have been reduced to protocols and reporting systems that make it harder to do what we were trained and developed a passion for. It talks about how checklists and workflows devalue and discourage the powerful creativity that arises when professionals interact with their unique clients and with each other. She anchors all this in the writings of philosophers Cusanus, Bruno and Descartes. It talks about the unknowable, which is something pedants usually don’t want to think about.

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#Healthin2Point00, Episode 199 | Olive acquires Empiric plus raises by Medable & Papa

Today on Health in 2 Point 00, I air some of my grudges as we get into our deals for the day. In the third extension of their Series C, Medable gets another $78 million bringing their total to $217 million. Olive acquires Empiric Health, expanding into surgical data analytics – where does this fit in with Sean Lane’s five-point strategic plan? Finally, Papa gets a $60 million raise and Anthem, Blackstone and K Health launch a joint venture. —Matthew Holt

Smart Healthcare Platforms Shine a Light On Price Transparency

By MATTHEW DALE

Did you know that as of January 2021, price transparency is being mandated for hospitals? But what exactly does that mean for company healthcare plans, third-party administrators, healthcare sharing organizations, employers, and employees? 

It means U.S. hospitals are now required to provide clear, accessible pricing information online about the items and services they provide in two ways: 1) as a comprehensive machine-readable file and 2) in a display of shoppable services in a consumer-friendly format. 

The Centers for Medicare & Medicaid Services are already requiring hospitals to publicly display their negotiated rates with insurers along with the cash pay price for over 300 shoppable medical services.

For healthcare consumers, this should mean they can shop for the hospital that performs the best knee surgery or other medical procedure for the lowest cost in their area. Unfortunately, the implementation of price transparency has been difficult, to say the least.

The American Hospital Association and other industry groups have spent large amounts of money to block the rule but were unsuccessful. Now, hospitals are trying to get around the rules. A Wall Street Journal investigation found that hundreds of hospitals implemented website code to block search engines from returning results for price inquiries. 

Technically, hospitals are following the price transparency rule, but by deliberately hiding data from search engines or making it nearly impossible to find, consumers are unable to locate a hospital or surgery center they can afford. That’s just one example of how hospitals are avoiding price transparency. The AHA has made it clear they are not happy with price transparency and they’ll do whatever they can to avoid this new rule, but why? 

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The Pain Is In Your Brain: Your Knees Know Next to Nothing

By HANS DUVEFELT

A “frozen shoulder” can be manipulated to move freely again under general anesthesia. The medications we use to put patients to sleep for such procedures work on the brain and don’t concentrate in the shoulder joints at all.

An ingrown toenail can be removed or an arthritic knee can be replaced by injecting a local anesthetic – at the base of the toe or into the spine – interrupting the connection between the body and the brain.

An arthritic knuckle can stop hurting and move more freely after a steroid injection that dramatically reduces inflammation, giving lasting relief long after any local anesthetic used for the injection has worn off.

The experience of pain involves a stimulus, nerve signaling and conscious interpretation.

Our brains not only register the neurological messages from our sore knees, shoulders, snake bites or whatever ails us. We also interpret the context or significance of these pain signals. Giving birth to a long awaited first baby has a very different emotional significance from passing a kidney stone, for example.

I have written before about how we introduce the topic of pain to our chronic pain patients in Bucksport. Professor Lorimer Moseley speaks entertainingly of he role of interpretation in acute pain and also explains the biochemical mechanisms behind chronic pain.

TREATING PAIN WITH ANALGESICS

Even when we are awake, we can reduce orthopedic pains with medications that work on the brain and not really in our joints. A common type of arthritis, such as that of the knees, is often treated with acetaminophen (paracetamol), nonsteroidal anti-inflammatory drugs (NSAIDS) like ibuprofen or even opioids.

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#Healthin2Point00, Episode 198 | Microsoft buys Nuance & lots of IPO rumors

Today on Health in 2 Point 00, Jess claims to be blameless for the drama between Jonathan Bush and Glen Tullman. On Episode 198, we talk about Microsoft buying Nuance for $16 billion and $3 billion in debt – is Microsoft taking over healthcare, and is this going to slow Nuance down? Cohere Health raises $36 million in a Series B, working on improving prior authorizations between health plans and providers. We wrap up with a lightning round of IPO rumors regarding Privia Health, VillageMD, and Bright Health. —Matthew Holt

Doxepin, a Little Known Super Drug in My Personal Black Bag of Tricks

By HANS DUVEFELT

A while back I was able to completely stop my mastocytosis patient’s chronic hives, which the allergist had been unable to control.

I did it with a drug that has been on the market since 1969 and is taken once a day at a cost of 40 cents per capsule at Walmart pharmacies.

Hives are usually treated with antihistamines like diphenhydramine (Benadryl). My super drug has a 24 hour duration of effect and is about 800 times more potent than diphenhydramine, which has to be taken every fours hours around the clock.

Histamine is involved in allergic reactions, but it also plays a role in stomach acid production. The allergic response happens mostly through stimulation of Histamine 1 receptors and the stomach acid output is regulated mostly via Histamine 2 receptors. Typical antihistamines are blockers of the H1 receptor, or binding site; they don’t do anything except sit there and prevent the real histamine from attaching and starting the allergic chain reaction. While diphenhydramine sits there for 4 hours, loratadine and the other modern, nonsedating (and less itch-decreasing) antihistamines work for 24 hours. Because there is some overlap between H1 and H2 blocking effects, H2 blockers like famotidine can boost the antiallergy effect of the typical H1 blockers. My mastocytosis patient still had hives on diphenhydramine, loratadine and famotidine combined.

But, wait, there’s more…

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Jean Drouin, Clarify Health, on the new data stack.

By MATTHEW HOLT

Clarify Health has linked (but anonymized) data on about 300m Americans, including their claims, lab, (some) EMR data and their SDOH data. They then use it to help providers, plans and pharma figure out what is going on with their patients, and how their doctors et al are behaving. CEO Jean Drouin, a French-Canadian who incidentally at one point ran strategy for the NHS in London, explained to me what Clarify does, how it’s going to help improve health care, where these data products are going next–and why they needed to raise $116m in March to build it out. Jean thinks about creating a single source of truth, and I asked him a couple of tricky questions about whether his customers would want to know the answer. A fascinating discussion. (Full transcript below)

Matthew Holt:

Hi, Matthew Holt here with another THCB Spotlight. And I’m with Jean Drouin, who has a French Canadian name, but is an American who’s lived in London–a bit like me–who is the CEO of Clarify Health. So Jean, Clarify Health is one of the new startups. You guys raised over a $110 million a couple of weeks back, which I guess is a small round these days considering what everyone else is doing.

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Health Tech Deals, on Clubhouse tomorrow (Thursday 8th) at 1 PT/4 ET

Tomorrow we are taking a break from #THCBGang. Don’t worry it’ll be back with a vengeance next week. Instead, Jess DaMassa & I will host a new show “Health Tech Deals” on Clubhouse

So please join Jess and me in The Health Care Blog’s room for “Gossip, analysis & Sh!talking about digital health funding”.

Tomorrow, Apr 8 at 1:00 PM PDT – 4pm ET on @joinClubhouse. Join us! (And if you need an invite to Clubhouse, let me know)

And it’ll be on our podcast channel (Apple/Spotify) from Friday — Matthew Holt

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