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Quickbites: Equip; SameSky, Jenny Schneider (GC) & Calibrate

I’ve decided to try a new format for some interviews with digital health leaders. The other week I was at the Digital Health Innovation Summit in San Diego. I did a fair amount of tweeting from the conference but thought I’d also grab a few of the participants for some rapid fire interviews. They’re only 5 mins each but hopefully this “Quickbite” format will catch you up on some interesting players (even as they got buffeted a bit by the wind and the marine air corp!)–Matthew Holt

The Interviewees are. Kristina Saffran, CEO Equip; Abner Mason, CEO SameSky Health; Jennifer Schneider, ex-Livongo and now EIR at General Catalyst; & Isabelle Kenyon, CEO Calibrate: Their videos are below in order

Kristina Saffran, Equip
Abner Mason, SameSky Health
Jennifer Schneider, ex-Livongo, General Catalyst
Isabelle Kenyon, Calibrate

#HealthTechDeals Episode 9: Signify buys Caravan; Koneksa; Jasper; Vynca; Doximity

Jess & I are worried about Peleton’s CEO! Well that not worried. Signify Health buys Caravan Health for $250m ; Koneksa gets $45m; Jasper Health gets $25m; $30m for Vynca; & Doximity pays $82.5m for scheduling co Amion, while going gangbusters on its numbers. Matthew Holt

TRANSCRIPT

Jessica DaMassa:

Matthew Holt, you and our loyal listeners might recall how a few weeks ago I bring up the fact that no one is talking about Peloton and the fact that it’s killing TV characters left and right. Then what happens all of a sudden? Boom! Take out of Peloton. The stock has tanked. The CEO is gone. Thousands of people laid off. Am I the harboror of terrible things that are yet to come? It’s this episode, the February 10th episode of Health Tech Deals.

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INSIDE THE ACQUISITION: Signify Health Adds Caravan Health’s ACO-building Expertise for $220M

By JESSICA DaMASSA, WTF HEALTH

Get the details behind the deal! Signify Health (NYSE: SGFY) is acquiring Caravan Health for $220 million in cash and common stock in effort to create one of the largest networks of at-risk healthcare providers in the country. For all those who love healthcare payment model innovation, this is a story about scaling both value-based care and accountable care organizations (ACOs), and we have Signify Health’s CEO Kyle Armbrester and Caravan Health’s founder and Chairwoman Lynn Barr here to explain the model and market potential this creates for Signify Health.

Signify Health is best known for its value-based, care-at-home focused approach in the Medicare Advantage space, and Caravan Health brings both tech and expertise to support the creation of accountable care organizations (ACOs) and the ongoing smart management of their patient populations. Caravan got its start with “safety net providers” in rural areas and pioneered what’s known as the “Collaborative ACO” approach that pools smaller health systems together based on practice similarities (instead of geography) to achieve the right kind of patient scale needed to mitigate risk. This is really important to scaling ACOs nationally, as you’ll hear both Lynn and Kyle explain, and, of course, we ask Kyle to zero-in on how this will extend Signify Health’s reach into new markets as well.

Beyond the acquisition, we also celebrate Signify Health’s one-year IPO-iversary. The company rang the bell on the New York Stock Exchange (then stopped by WTF Health to talk about it!) on Feb 11, 2021. Looking past the Caravan Health acquisition and to what it will lead to next, Kyle and Lynn (who will now be activating even more payment model innovation as Signify Health’s VP of Innovation) get fired up about what’s ahead.

THCB Gang Episode 82, Thursday Feb 10th

Joining Matthew Holt (@boltyboy) on #THCBGang for an hour of conversation on the happenings in health care and beyond were writer Kim Bellard (@kimbbellard), delivery & tech expert Vince Kuraitis (@VinceKuraitis); and policy consultant/author Rosemarie Day (@Rosemarie_Day1).

Rosemarie very recently had some personal experiences with end of life care. We talked a lot about hospice and palliative care (and dementia) and, as Rosemarie says, about how little people seem to know about these incredibly important topics.

You can see the video below. If you’d rather listen than watch, the audio is preserved as a weekly podcast available on our iTunes & Spotify channels

#HealthTechDeals Episode 08: M&A special! ThirtyMadison & Nurx, Concerto Care, Kindbody, Calm, Withings all at it!

Will Jessica stop laughing? Will we get the intro right? Who knows! 2022 is a big M&A year and this episode is no exception: ThirtyMadison and Nurx have merged, combined they have $300 million in revenue; Concerto Care acquires Crown Health; Kindbody buys Vios Fertility Institute; Calm merges with Ripple Health; Withings buys 8Fit.

-By Matthew Holt

TRANSCRIPT

Jessica DaMassa:

I can’t.

Matthew Holt:

I’ll start.

Jessica DaMassa:

No, you can’t start.

Matthew Holt:

Welcome to Health Tech Deals. The show where Jessica DaMassa normally does this part, but she’s can’t because she’s laughing too much. It must be February the 9th, 2022 edition. Possibly? Yes? Maybe? I don’t know. Maybe Jessica will stop laughing after the break.

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BREAKING: Thirty Madison and Nurx Merge, CEO Steve Gutentag Takes Us Inside

By JESSICA DaMASSA, WTF HEALTH

Thirty Madison and Nurx are merging and here’s what Steve Gutentag, CEO of Thirty Madison and the soon-to-be-combined entity, is saying about the deal!

This is a merger of two well-funded, direct-to-consumer, virtual-care-plus-pharmacy startups that deliver specialty and expert care and prescription drugs to a combined 750,000 active patients, with or without insurance. To-date, Nurx has raised a total $110 million, and Thirty Madison closed a Series C in June 2021 that brought their total funding to $210 million with a then-valuation of over $1 billion.

Thirty Madison currently deals with migraines, allergies, GI issues, and men’s hair loss, while Nurx (once referred to as “the Uber of birth control”) brings a predominantly women’s health-focused portfolio of chronic condition care focusing on sexual health, contraception, STIs, and dermatology.

So, what makes sense about this combination? And, what’s the big-picture plan for differentiation against rivals like Hims&Hers or Ro’s Rory or Roman brands – OR, the myriad virtual-first primary care clinics that have popped up in-person and online and offer more traditional routes to care for these same such conditions?

Steve talks extensively about the chronic care focus of both businesses, how each is providing access to specialists and experts patients wouldn’t otherwise be able to see, and how both companies’ tech platforms are built to scale along with the addition of new conditions. Still…why bring together care for this assortment of conditions instead of, say, either Thirty Madison or Nurx looking to find a merger partner who could expand their platform into high-demand chronic care areas like diabetes management, heart health, or mental health care? Is that what’s next, after the paperwork on this merger is signed? Tune in for more on Steve’s plans for the future of the NEW Thirty Madison and how “longitudinal care models” factor into its strategy to win over more patients AND their employers and payers.

Does Digital Health Technology Have a “Famous Trio” in the Making?

By MIKE MAGEE

Yale historian, Frank M. Snowden wisely notes in his 2020 book, “Epidemics and Society”, that “We must avoid the pitfall of believing the driver of scientific knowledge is ever a single genius working alone.”

His insight came to mind this week as I was reviewing the January 11, 2020 Forbes article by Seth Joseph, health tech policy correspondent, titled “What Bubble? Digital Health Funding Year in Review 2021.”

By one measure of success – dollars invested – it’s been a banner year. According to Joseph, there was over $29 billion funded, and 729 digital health US-based startups in 2021. But according to Scott Barclay, Managing Director at Insight Partners, who is quoted generously in the Forbes piece, “digital health is still in its relative infancy.”

This level of churn, passion, and (some might say) financial frenzy is reminiscent of another moment in scientific history – the latter half of the 19th century. Over a few decades, “The Germ Theory” was fleshed out with unprecedented and remarkable human progress following in its wake.

The breakthroughs were not the result of 729 often-repetitive and unoriginal ideas, but rather the work of three successive innovators whose work built on each other, combining innovation, technology and health.

Snowden termed the three “The Famous Trio.”

The first was Louis Pasteur (1822-1895) a chemist with a sharp eye and mind. He had been hired to find a solution for wine and milk that was spoiling too fast. The tools he wielded were mostly observational, including a still primitive microscope. With it, Pasteur was able to identify putrefying microbes as causal but went two steps further. He noted that a heating process killed the microbes and halted the product putrefaction, and tied the microscopic organisms to specific human diseases. With this knowledge, he unveiled a commercial process of serial attenuation of disease-causing microbes that allowed safe inoculation of humans and acquired immunity.

The second of the trio was Robert Koch (1834-1910), a physician 20 years younger than Pasteur. While studying Anthrax at the University of Gottingen, he visualized the large causative bacteria, introduced it into a lab animal, and reproduced the disease. Going one step further, he described resistant spores of the bacteria, identified them in grazing fields, and proved that eating grass laden with spores could spread Anthrax between animals. His careful investigative approach led to the uncovering of the etiology of tuberculosis and to “Koch’s Postulates”, four steps still in place today, which when followed, constitute laboratory-based scientific proof of a theory. Beyond this, Koch was a technology innovator, teaming up with the Carl Zeiss optical company, whose lenses, in combination with specialized tissue stains and fixed culture mediums, allowed Koch to visualize and describe M. tuberculosis.

The third innovator was Joseph Lister (1827-1912), a professor of surgery at Edinburgh.  Thanks to the development of ether and nitrous oxide in the 1840s, pain management intra-operatively was under partial control. Improving techniques and tools helped control blood loss. But post-operative infection remained a persistent and deadly threat. Viewing the work of Pasteur and Koch, Lister recognized the possibility that contamination with microbes might be the cause. In carefully designed studies, employing hand scrubbing, sterilization of tools, and spraying the patient with carbolic acid, rates of post-operative sepsis declined. Other colleagues added sterile gowns, gloves, and masks, merging these added measures with Lister’s support.

 Arguably, the life-saving “Germ Theory” was the work product of complementary insights and serial incremental progress. It might then be reasonable to ask, of the $29 billion funded 729 digital health tech US-based startups in 2021, how many represent additive and progressive insights that might eventually lead to game-changing advances in the health of America?

Scott Barclay appears to be mining this same territory. In Forbes, he says, “The green shoots of the past 10 years are turning into new vibrant ecosystems that are growing, but young. We are early in what may turn out to be a two-decade epoch of super innovative ideas, strong founders with execution experience bringing change to a $4T sector of the economy that has been sclerotic and in many parts oligopolistic. The majority of the largest digital health companies in 2040 public markets have not yet been started.”

Does Digital Health Technology have a “Famous Trio” in the making to link infrastructure, AI diagnostics, and evidence-based health? Who are they, and how do they complement each other?

Mike Magee, MD is a Medical Historian and Health Economist, and author of  “CodeBlue: Inside the Medical Industrial Complex.“

Komodo Health: Chan Zuckerberg Initiative Partnership, Rare Disease Patients, and… IPO Rumors?

By JESSICA DaMASSA, WTF HEALTH

Komodo Health has been catching lots of buzz lately thanks to a recently announced partnership with the Chan Zuckerberg Initiative’s Rare as One Network AND some chatter about a possible upcoming IPO that seems to have come from its own CEO Arif Nathoo. To check what’s true and what’s false, we sat down with Komodo’s President, Web Sun.

What did we learn? Well… a lot. The core of both the CZI partnership and the future of Komodo’s business is their Healthcare Map, which Web says draws together the data of more patients (300M+), across a longer period of time (as long as 6-years for some cohorts) than anyone else in the industry. But, this comprehensive, longitudinal view of the patient journey is only part of Komodo’s usefulness – the other part is how they use that dataset to surface insights.

As Web talks about how all this will manifest itself in the context of rare diseases to benefit the patients who belong to the 60 different advocacy organizations that will now have access to Komodo thanks to the CZI partnership, it’s not only easy to understand how comprehensive data can help rare disease patients, but how this is a metaphor for helping all patients across all manner of healthcare. Shortening the diagnostic journey, better understanding symptom patterns and comorbidities, matching patients to specialists highly experienced and adept at managing their conditions, quickly bridging connections to novel therapies and clinical trial opportunities… how beautiful that this will be offered to patients who need it most. The market potential, however, lies in how it will be scaled-up-and-out to the rest of us – which brings us back to those exit rumors! Tune in to hear what Web has to say about his co-founder’s comments, and how he believes Komodo is differentiated from other big data businesses in the analytics space.

Take a Tip from Domino’s

By KIM BELLARD

If you’re already thinking ahead to next Sunday’s Super Bowl, you might be thinking about Domino’s, because, as everyone knows, pizza and football go together like mom and apple pie.  I’m thinking about Domino’s too, but not because I’m planning my order.  It’s about their new program to reward customers who do more of their own work.  

Ahem, healthcare: pay attention.

Last week Domino’s announced that customers who picked up their own orders, rather than using delivery, would earn a $3 tip.  Art D’Elia, Domino’s executive president and chief marketing officer, explained: 

It takes skill to get pizza from a Domino’s store to your door. As a reward, Domino’s is giving a $3 tip to online carryout customers who take the time and energy out of their day to act as their own delivery drivers. After all, we think they deserve it. 

The program – Domino’s Carryout Tips – isn’t quite as rewarding as it might sound.  The $3 is actually a credit on your next order, and that credit has to be used by the following week.  There’s a $5 minimum to qualify, and orders have to be online.  The program was announced in time for the expected Super Bowl surge and is scheduled to end May 22.  

But still.  I don’t like waiting for deliveries, I do like pizza, and if I ordered a lot of Domino’s (which I don’t), the $3 tip would be decent discount, even if I had to order even more Domino’s to actually get it.

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Ecology and Technical Advance

By MIKE MAGEE

It is fair to say that the vast majority of Americans know more about viruses today than they did 24 months ago. The death and destruction in the wake of COVID-19 and its progeny have been a powerful motivator. Fear and worry tend to focus one’s attention.

Our collective learnings are evolving. We have already seen historic comparisons to other epidemics. Just search “The 10 worst epidemics” for confirmation. But one critical area which has been skimmed over, and only delicately probed (if at all) is the ecology or “the ecological point of view.”

For those interested, let me recommend “Natural History of Infectious Disease” published in 1972 by Nobel laureate and Australian biologist Sir Macfarlane Burnet and his colleague David O. White.

Chapter 1 begins: “In the final third of the twentieth century, we of the affluent West are confronted with no lack of environmental, social, and political problems, but one of the immemorial hazards of human existence is gone. Young people today have had almost no experience of serious infectious disease…For the first time in history deaths in infancy and childhood are not predominantly from infection.” But a few sentences on, they add this addendum, “Infectious diseases may be almost invisible, but it is still potentially as important as ever it was.”

Americans are all too familiar with the living biologic organism named COVID-19. By now, they know what it looks like, the role of its outer spikes, its nuclear makeup, and genetic alterations that allow the creation of derivative variants and vaccines. But in addition to its biological science, it also has an ecological life as well.

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