Signify Health’s CEO Kyle Armbrester stops by on IPO day! Hours after ringing the bell on $SGFY’s launch on the New York Stock Exchange, Jess DaMassa digs into the health tech company’s $7.1B valuation and plans to help providers, payers, and self-insured employers scale-up their value-based care offerings. Kyle calls it “Value-Based Care 2.0” and, for the uninitiated, does a great job of stepping back and explaining this healthcare payment model’s history and how Signify is building its next-gen approach from the groundwork laid over the past decade.
What’s unique about Signify Health’s model is that it’s not just relying on tech to make it easier to find where managed care organizations can help cut healthcare costs and drive better outcomes – they also provide in-home health services that send nurses, doctors, and social workers out into patient’s homes to physically look for potential roadblocks to recovery and wellness. It’s in this critical “last mile” where Signify is possibly making the greatest impact, connecting the social determinants of health (physical environment, social support networks, economic status, etc) back into the healthcare system in a way that not only helps patients, but is also aligned with how all the stakeholders along the care continuum are incentivized. (And that includes Signify, which goes at-risk along with their clients and only gets paid when they drive better outcomes and cut-out costs.) So, what is the ultimate opportunity for this kind of “deep healthcare” business? We get into Signify Health’s business model, the competition, and its plans for growth and M&A activity now that they’re backed by $564M in capital from their initial day on the public market.
Just 45 days after Teladoc Health closed its $600 million acquisition of hospital telehealth provider InTouch last year, it turned around and announced a surprise $18B acquisition of Livongo, extending its reach into patients’ homes via the digital health startup’s remote monitoring platform for diabetes, hypertension, and more. Now, four months past the signing of that deal, and at the start of yet-another pandemic year expected to be big for virtual care, the two big questions healthcare market watchers have for Teladoc Health are: 1) how’s that double integration going? and 2) just how much pushback are you getting from health system clients that look at this “hospital-to-home” virtual care pathway as a little too close to their own business models? Jess DaMassa gets the latest from InTouch Health’s former CEO, now Teladoc Health’s President of Hospital and Health Systems, Joe DeVivo and Livongo’s former Chief Medical Officer, Dr. Bimal Shah, who’s now Teladoc Health’s Chief Medical Officer for Product and Analytics.
What’s the integration been like for our old friends from the InTouch and Livongo teams? What areas of the “hospital-to-home” digital infrastructure are priority for 2021? And, what about data integration? With more than 1-billion data elements from Livongo, 10.5 million visits on Teladoc’s platform, and 3.5-million Teladoc-enabled visits via hospital clients, it sounds like interoperability to provide “intelligence, not data” is paramount to the company’s strategy for driving growth. As Joe says, “Teladoc has just positioned itself to be “THE” partner to institutionalize virtual care for healthcare systems. Excellence around the delivery of care will always sit in the health system, but to the extent that we can improve the consumer experience in the onboarding into the healthcare system and to prop up our health system customers, all the better.” For lots more on winning over hospitals, outflanking the competition, and fully leveraging the AI-plus-AI engine Livongo built, tune in now.
Today on Health in 2 Point 00, we’ve apparently got 58 different SPACs looking to acquire health tech companies – so looks like Jess and I will be staying busy! On Episode 183, Jess asks me about Oscar Health filing their S1 and all the dirt people are digging up for IPO, Plume raising $14 million for their full stack clinic for transgender people, Sitka raising $14 million, and Alma raising $28 million providing practice management software for mental health providers. —Matthew Holt
The executive leadership team of UpHealth, the self-described “global digital health super-company” that’s headed toward the public market via a SPAC that’s brought together six companies, 10-years of health tech innovation, and a war chest of $285M dollars, stops by to talk about growth plans and grabbing market share. UpHealth’s Chairman & Founder, Dr. Chirinjeev Kathuria, Co-CEO & President Dr. Al Gatmaitan, and future COO Jamey Edwards talk through what Jamey says is “really a revenue story” about the fastest growth areas of digital health. Global telehealth, integrated care management, digital pharmacy, and behavioral health will be UpHealth’s sweet spots. The newco is positioning itself as a “one-stop shop” for the digital healthcare infrastructure that will support a local healthcare organization in rolling out digital care services and integrating them with their in-person care continuums. This is different than, say, a Teladoc or an Amwell, which in addition to providing infrastructure also have their own tech-enabled medical groups, which can sometimes be viewed as competitive to their customers. The global nature of UpHealth is another differentiator, particularly in how it hopes to ultimately make it possible for highly specialized care from the US to be “exported” to countries abroad AND for lower cost care for lower acuity issues to be “imported” in. With $190M in revenue projected for 2021 – and that’s NOT dependent on integrating the six companies – we talk through areas for potential growth, that aforementioned competitive landscape, and whether or not UpHealth is feeling the pressure to hurry their integration.
Apparently, self-insured employers hot on better managing their healthcare spend are finding truth (and dollars) in Embold Health’s mantra that “quality is the best, most sustainable way to control costs.” This health tech startup is applying the old “Centers of Excellence” framework to the individual physician level; helping identify high-performing primary care docs and specialists in local markets for employers who not only want to offer their employees better quality care, but also improve the healthcare system in the communities in which they live and work.
Daniel Stein, Embold Health’s co-Founder & CEO, explains the company’s model, which is being perfected with one of the most demanding-yet-coveted “health activist” employers out there: Walmart. In this particular case, Walmart is actually incentivizing its employees to go to the providers ranked highest by Embold’s assessment, which looks at physician performance along three categories: 1) appropriateness of care; 2) outcomes; and 3) cost-effective compared to peers in-market. Backed by the robust national BlueCross BlueShield dataset, the information Embold Health is collecting, analyzing, and doling out to employers can definitely cause some health systems to take pause — and their docs to bristle. So, how does Embold Health diffuse potential blowback? Here’s where the competitive nature of local healthcare, particularly in the world of primary care, becomes clutch. Tune in to hear the details, including some very interesting stats, as well as Embold’s latest endeavors to help docs make better referrals to specialists.
On Episode 182 of Health in 2 Point 00, we’ve actually got deals less than $100 million. Starting off with one though, Sidecar Health raises $125 million bringing their total to $163 million. Folx raises $25 million providing telehealth for the LGBTQ+ community and growing fast, TimelyMD raises $60 million providing telehealth for colleges, another MSK company SWORD Health raises $25 million and GetWellNetwork acquires Docent Health for an undisclosed amount of money. —Matthew Holt
Today on Health in 2 Point 00, Jess asks me about Lyra Health raising $187 million — this is their third raise in less than a year — and gets my take on the SPAC rumor for 23andMe, which is valued at $2.5 billion and just raised $82.5 million in December, and the rumor about Ro following Hims & Hers in a SPAC. Sharecare IS planning on “SPAC-ing” and recently acquired Doc.ai, and DarioHealth acquires Upright Technologies for $31 million.—Matthew Holt
No copays. No coinsurance. No surprise out-of-network anesthesiologist fees or pre-op imaging bills. Just one, single price (that you see in advance) tells you EXACTLY what you’ll be paying for your surgical care on Carrum Health. Backed by the recent close of a $40M Series A funding round, the health tech startup’s CEO Sach Jain talks through all the ways his company is looking to disrupt how we buy surgical care. Standardized bundle pricing is just the beginning. Carrum requires its Centers of Excellence (and each of their docs) to pass a proprietary 50-point inspection before they can join the platform, AND every surgery must be backed by a 30-day Warranty! How have they convinced providers to jump through these kinds of hoops? With a growing client-base of self-insured employers (Sach says they have several Fortune 100 and Fortune 500 clients) and payment-in-full made to providers upon discharge, the case for additional revenue and zero A/R days is pretty compelling to a health system. And what about the other side of the business model? Tune in to find out why Sach believes Carrum Health’s “marketplace” approach will appeal to the growing base of “activist” employers whose HR benefits administrators are becoming more and more adept at building-their-own healthcare networks.
Covid 19 vaccine development may have mainstreamed questions about how to hasten drug development timelines, but Medable, a health tech startup that offers researchers a way to de-centralize clinical trials, has been working to solve this problem for five years. Freshly funded with a $91M Series C raise, co-founder and CEO Michelle Longmire talks through the benefits of “liberating” clinical trials from academic research centers and sending them onto devices into patient’s homes. Traditionally, drug development processes average more than 10 years, cost millions of dollars, and are limited in the diversity of patients they can recruit because of the heavy focus on the geographic location of the research team conducting the trial. Medable’s digital platform breaks these limitations, reducing drug development timelines and costs by making it easier for researchers to draw study participants from anywhere. More importantly, it makes the novel medicines being tested by the trial available to a bigger, more diverse array of patients. Despite the gains made in 2020 toward the de-centralized clinical trial model (Medable’s revenue shot up 500%), there’s concern that Big Pharma may return to the business processes of old once the pandemic is under control. Does Michelle think last year make enough of an impact to change their business model for good? Find out what’s ahead for the future of pharma.
On the eve of the finalization of their SPAC IPO and New York Stock Exchange debut as $HIMS, Hims & Hers CEO, Andrew Dudum, sat down with Jess DaMassa to talk about his wellness company’s transition into full-on healthcare provider. With new primary care, mental health care, and covid19 testing services launched as a result of the pandemic, Hims & Hers has expanded beyond their initial dermatology and sexual health core to provide telehealth-plus-pharmacy services for a growing range of chronic conditions, mental health issues, and everyday health concerns commonly tackled by PCPs. How far into healthcare delivery will Hims & Hers go? What types of acquisitions or innovations will be necessary to compete with the likes of Teladoc/Livongo, Optum, or the slew of virtual-first primary care clinics currently vying to be healthcare’s “digital front door”? And, what are we to make of that fact that Hims & Hers has gone retail: appearing on the shelves of every Target store in the US? Healthcare’s changing, and we get a fired-up Andrew to wax philosophical on why companies like his — that are consumer-focused, disrupting the healthcare “experience,” AND slowly eroding the healthcare payment model with a customer base willing to pay out-of-pocket — will be leading the way to a next-generation healthcare model.
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