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Kevin Roche

The Healthy Skeptic is a website about the health care system, and is written by Kevin Roche, who has many years of experience working in the health industry through Roche Consulting, LLC. Mr. Roche is available to assist health care companies through consulting arrangements and may be reached at khroche@healthy-skeptic.com.

Jun 11 2021

Another example of unmoored valuations.  This company is founded by someone who has previously had success with health care startups, so the assumption is he will be again.  Not necessarily a good investment approach.  $58 million in new capital, valuing the company at $500 million, for helping employer health plans provide health "navigation" services.

https://medcitynews.com/2021/06/glen-tullmans-newest-startup-raises-another-58m/?utm_campaign=MCN%20Daily%20Top%20Stories&utm_medium=email&_hsmi=133115565&_hsenc=p2ANqtz-98_ZbrX5uaoeQ1usctjkKa7Ld1oqbNV7k1AYAgN4HP_JJlTzefF7Z39xMlyOzVzLsEUZw3WZdUB090Iet8Mfk2nsRFqRDG3AQDyWXrZ6eijq0RdAk&utm_content=133115565&utm_source=hs_email
Jun 07 2021

Now this merger makes a little more sense.  One Medical, which offers primary care services through clinics and contract arrangements, is buying Iora Health which operates primary clinics for commercial and Medicare patients.  The transaction is all stock, $2.1 billion worth, so no cash to Iora owners, which is interesting.  The primary care market is getting competitive.

https://www.globenewswire.com/news-release/2021/06/07/2242635/0/en/One-Medical-Announces-Agreement-to-Acquire-Iora-Health.html
Jun 07 2021

Remember what I said about these times when too much capital is floating around and valuations get absurd, so you see a lot of companies who know they can't grow into their valuation starting to all merge together.  Here is an example.  Carbon Health, which offers in-person and virtual primary care, is buying Steady Health, a vendor of disease management services.

https://www.fiercehealthcare.com/tech/carbon-health-pushes-into-home-disease-management-steady-health-acquisition?mkt_tok=Mjk0LU1RRi0wNTYAAAF9hW3PNQ8dLzjmn4AVjnEflTiUctHmcxCENweP1hAw882MaYMVolc0dcwmsNP04M6_FUkm1qZ012HaS6Z6A88HSi9ESPLGd2zYUdcOnm1RWlkyiEI&mrkid=635530