The telehealth investment craziness continues as well, with eVisit, a provider of software to help health systems offer telemedicine, raises $45 million in new funding.
We will see how devoted to investors Medicare Advantage plan company Devoted Health will be. The valuation insanity continues as this company going into an incredibly competitive market, against people like UnitedHealth and Humana, raises $1.2 billion in new capital at an $11 billion valuation. Literally crazy.
I simply couldn't be more astounded at some financing round valuations. Here is another one, in which behavioral health firm Spring Health raised $190 million, supposedly at a $2 billion valuation.
We are seeing a wave of acquisitions among health care companies hoping to show that they actually have a business that justifies high valuations. Symplr provides software to help health care companies with certain administrative tasks and is acquiring Halo Health, which offers clinical communication and collaboration software. No price disclosed but you can bet it was extremely high.
More insanity on health care valuations. City Block builds primary care clinics in urban areas. It just raised $400 million in new capital, with a valuation of almost $6 billion, in what is now a very competitive market among well-financed companies.
Milliman is a large, respected health care actuarial firm. They are acquiring SkySail Rx, which will add greater pharmacy data and analytics capability.
The health care M & A madness continues with genetic testing company Ivitae buying Citizens Health, which organizes medical records, for an astounding $325 million. This supposedly will allow for better integration of genetic information.
More health care company valuation insanity. Ginger, a mental telehealth company, spices up its offerings by merging with Headspace, which offers a meditation app. Ginger's management should have meditated on this deal a bit more. The merged company is supposedly valued at $3 billion, for a company that claims to have $300 million in bookings, whatever that means. The only reason people invest in this kind of garbage is they don't know what else to do with their capital and they believe in the greater fool theory--they can sell to someone else before people figure out what a dud they have.
Carbon Health is going to burn investors to a crisp, acquiring two urgent care chains in recent days. The company raised a lot of funding and is splashing it out there. It wants to be the country's biggest primary care provider. Investors are likely to need mental health care in the next few years.
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.