Jess & I have been out late playing the odds in Vegas at the AHIP conference. This #healthtechdeals has a special appearance from our friend Lara Dodo at Newtopia, and then there are deals for Proximie ($80m), Abacus Insights ($28m), AI VF ($25m), Florence Health ($27m) & Cara Care ($7m) –Matthew Holt
BY JESS DaMASSA, WTF HEALTH
With 61% of American adults reporting a negative behavior change – troubled sleep, changes in diet, increased alcohol consumption, more time on screens, etc. – as a result of the pandemic, AND healthcare payers looking at 2022 cost increases in the range of 8-10%, one has to wonder just how bad our collective health has become thanks to the past two years.
Jeff Ruby, CEO of tech-enabled habit change provider, Newtopia, shares some startling stats about our population’s health, particularly when it comes to those lifestyle-related metabolic disorders that his company is trying to prevent. And, thus, we get into a fiery conversation about condition prevention versus condition management… at-risk payment models versus per-member-per-month models… behavior change versus prescription drugs… and whether or not a biz like Newtopia (running at-risk on goals related to prevention) is better placed or worse off as a result of this population that, though sicker and riskier than before, is showing up in greater numbers to try their program.
It’s clear where Jeff stands with his genetics-plus-behavioral-psychology-based platform, but questions about how to best handle our population’s health as the pandemic wans are still very much up for debate. Even on the public markets – Newtopia was one of the first digital health companies to go public during the pandemic, hitting the Canadian TSX as $NEWUF in March 2020 – investors’ sentiment for virtual care just isn’t what it used to be. Maybe we can apply some behavior change psychology there too? (wink, wink) Though Jeff talks about “uncertainty about how US healthcare works” in the context of the market, it seems like that “uncertainty” is also pervasive in our approach to spending for chronic care – especially now. Are dollars toward prevention dollars that are better spent? A compelling case is made…
By JESSICA DaMASSA, WTF HEALTH
Chronic disease prevention is often lumped into chronic disease management – but should it be? Aren’t there different nuances to preventing diseases than to treat them? Making the case that healthcare’s “primary prevention” businesses deserve their own category is the CEO of Newtopia, Jeff Ruby. Newtopia’s just announced the creation of a new category of healthcare provider, the Habit Change Provider, in effort to more accurately describe the role of companies working to change the way people behave in their everyday lives. What they eat, whether or not they exercise, how they deal with stress and anxiety – in short, this is the business of influencing the many micro-decisions that, cumulatively, add up to our overall health and whether or not we’ll be impacted by “lifestyle diseases” like diabetes, obesity, heart disease, mental health issues, and more.
Newtopia’s been in this business for over a decade, starting its path to commercialization with Aetna and a three-year randomized control trial of more than 2,800 Aetna employees that proved the power of prevention: physical risk reduction, clinical cost savings, and the “holy grail” of any population health model, in-year ROI. So confident is Newtopia in their approach that the company goes at-risk on outcomes, a compelling enough value proposition to attract clients like Accenture, JP Morgan Chase (and it’s now defunct joint-venture with Amazon and Berkshire Hathaway, Haven) and the whole of CVS Health (which acquired Aetna.)
Is this starting to sound different than those chronic condition management companies yet? Listen in to hear more about the details behind Newtopia’s approach, which even leverages genetic testing to “remove blocks for habit change” by helping people identify what they’ve inherited from their parents (slow metabolism, difficulty processing fats, body’s ability to handle stress signals) so they can get past blaming themselves and start developing healthy lifestyle improvements.