The Health Care Blog – Everything you always wanted to know about the Health Care system. But were afraid to ask.


One Drop just landed a $98. 7M deal with Bayer — and we got the details from CEO Jeff Dachis. The timing of this deal is nothing short of impeccable: less than a year after the life sciences giant led One Drop’s Series B with a $40M investment, and amidst a veritable funding frenzy aimed at growing digital health companies focused on chronic condition management. So, how is One Drop planning to use this investment part Series C/part development fees to expand their data science platform known for diabetes and hypertension into some of Bayer’s biggest areas of focus — cardiology, oncology, and women’s health?And how does this even closer relationship with such a consumer health brand help One Drop further evolve the retail side of its go to market strategy?Don’t forget — One Drop is sold direct to consumer via CVS, Walmart, and Amazon in addition to the more traditional routes via employers and payers. It’s a full breakdown of the deal and a walk through the key points of differentiation Jeff sees as integral to shaping One Drop’s move for greater global market share.

More recent data on the value based care movement comes from the Health Care Payment and Learning Action Network LAN, a public private partnership launched in 2015 by the Department of Health and Human Services. The LAN reported in October 2018 that public and private payers covering 226 million lives, or 77% of insured Americans, had tied 34% of their payments to value based care. According to the organization, only 23% of total payments had been value based in 2016. A deeper analysis of the LAN data, however, shows that the vast majority of value based payments—both in Medicare and in the larger healthcare system—were still limited to pay for performance, upside only shared savings, and care management fees paid to patient centered medical homes. From his vantage point at the helm of one of healthcare’s biggest IT infrastructure companies, Change Healthcare’s President and CEO, Neil de Crescenzo, has an unrivaled perspective at how covid19 has impacted hospital systems and payers.

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His business builds the “connective tissue” that not only supports the administrative management and patient engagement aspects of “Big Healthcare,” but it also literally helps those organizations make money, processing about $1. 5 Trillion in claims each year. So, what’s he seen so far in 2020?And what’s ahead for 2021?Neil stops by to talk about current challenges facing healthcare provider orgs and payers — and what’s ahead in the “new” healthcare economy where “change” is the only constant. From HHS’s new interoperability rules to telehealth and the more dispersed healthcare system it will inevitably create, we dive into all things future of health including the details behind Change’s two recent health tech acquisitions each over $200M, what Neil thinks about the Teladoc Livongo merger, and how digital health startups have an unprecedented opportunity to help expand the healthcare system beyond its traditional footprint. Even before COVID 19, healthcare reform seemed to be stuck between a rock and a hard place, but there is a rational way forward.


This approach, which I call “physician led healthcare reform,” would engage doctors in building a healthcare system that was safe, effective, patient centered, timely, efficient, and equitable, to use the Institute of Medicine’s set of foundational goals in its landmark book, Crossing the Quality Chasm: a New Health System for the 21st Century. Primary care physicians, rather than hospitals, would be in charge of the system, and they’d work closely with specialists and other healthcare professionals to produce the best patient outcomes at the lowest cost. It would take a decade or more to restructure the healthcare system so that this goal could be achieved. Similarly, the transition to a single payer insurance system needs to be accomplished gradually—although the pandemic might accelerate that timetable. Most people are not yet ready to abandon employer sponsored insurance, and there’s still a lot of distrust of the government.

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Providers are more likely to accept changes in how they’re paid over time than all of a sudden. Additional benefits can also be brought online slowly. Ideally, we could transform healthcare financing over a 10 year period while rebuilding the care delivery system at the same time. That is why implementing Medicare for America—a reform plan devised by the Center for American Progress and embodied in a current House bill–makes more sense than going directly to Medicare for All: it changes the system incrementally while achieving universal coverage fairly quickly. Medicare for America would do this by enrolling the uninsured, people who purchase individual insurance, and those now in Medicare, Medicaid, and the Children’s Health Insurance Program CHIP. People would also be enrolled automatically at birth.

Companies could enroll their employees in Medicare for America, and employees could opt out of employer sponsored plans and enroll in the public plan.