And here is why I often wonder what investors are thinking when they make large investments in companies with dubious businesses. Carbon Health was going to open hundreds of primary care clinics and offer telehealth services as well. It raised over $600 million and borrowed a bunch of money as well. It is broke and filed for bankruptcy. Big investors like VC funds aren't always that smart.
Chamber Cardio helps cardiologists participate in value-based payment arrangements, which adjust payment based on outcomes. Medicare and other payers have implemented these but it makes no difference on total spending. Chamber raised $60 million in new funding. I predict it will be hard to get the money back.
Providing mental health services is hot right now in the investment world, which is understandable given that about half the country appears to be completely insane. And providing those services online and through telehealth is really hot, so Spring Health, specializes in online mental health services is buying Alma, which provides systems and other infrastructure for mental health providers and helps them with payer contracting.
Focussed primary care clinics had a moment, particularly in regard to Medicare Advantage plans, and that moment has kind of passed. Similar clinics were operated for employers and other group settings, but never got quite the hype of the MA ones. Two of those employer-type clinic companies, Premise Health and Crossover Health are merging, on undisclosed terms. The combined company will serve more than 400 organizations with around 900 clinics.
Drive Medical, a provider of mobility and other health equipment, is acquiring Compass Health, which provides a variety of consumer health products. No price terms were released.
Sword Health, which offers physical therapy and pain management programs is acquiring Kaia Health, a German company which focuses on "digital" musculoskeletal and COPD care. The price is $285 million.
This isn't really surprising, given what you can see in employment and other reports. Minnesota is one of the state's viewed as having a bad economy, one that is either in or near recession levels, which means multiple calendar quarters of a decline in economic output. Data reviewed included retail sales, tax revenues, building permits and other economic activity indicators.
Angle Health, a vendor of a supposedly artificial intelligence powered health benefits platform for employers raised $134 million in new capital. All you have to do is mention AI and the dollars flock in. Whether or not they flock back to the investors is a whole different issue.
Reema Health, which calls itself a complex care management company, reamed investors for $19 million in capital, to be used for the usual "to support growth". The firm works with marginalized patients, often on Medicaid and talks a do-gooder game while claiming to deliver a strong ROI. This is a crowded space in which no one has really done much good and I see nothing to suggest why these guys are any different.
Press Ganey, which provides market research for health plans and providers , is being purchased by health care survey firm Qualtrics for $6.75 billion. Both companies claim this is all related to AI, which is what everyone says now to get a stock boost.
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. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.
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. Mr. Roche is available to assist health care companies through consulting arrangements through Roche Consulting, LLC and may be reached at khroche@healthy-skeptic.com.