We’ve hit Q4 and all of a sudden the dealmakers and strategists are getting things across the finish line before the holidays begin.
Lots of activity (and college football hot takes) to cover in this newsletter today so strap in!
Finally, these newsletters are my full time job and passion – if you could take a second to share and forward Hospitalogy to colleagues, I’d really appreciate it!
Big Healthcare Stories:
The big stories from the week
Health Systems with Combined $60B in Revenue Form Longitude Health
Longitude Health is like a cross market merger without the merger. In this case, the parties involved aren’t colluding to raise prices or dominate markets, but rather want to drive efficiencies in new companies/ventures that can scale across their portfolios, and ultimately make money on the back end investments. The move brings me back to pandemic days when health systems announced staffing alliances like Evolve or data platforms like Truveta. Clearly at this point in time, investing and incubating new clinical and administrative innovation is top of mind in health system strategy rooms.
…and on a similar note, Henry Ford Health is spinning off its population health unit into its own company Populance. It’s a notable move right after recent M&A: Henry Ford also closed its acquisition of Ascension hospitals in the Michigan area, and the recent moves may signal a deeper move into revenue diversification in value-based care, similar to what we’ve seen with Intermountain and Castell.
The Weekly Executive Summary
Notable moves, policies, and strategies from around healthcare.
PBMs cry foul
CVS, Cigna, and UnitedHealth are trying to kick Lina Khan off the FTC’s PBM antitrust suit, citing bias.
An Epic Debacle
In the midst of heated back and forth between Epic and Particle, Carequality released a resolution related to its interoperability network. Still, the antitrust suit will continue. Between PBMs and this, I think this will be the closest we get to a healthcare soap opera in 2024. And FTC involvement is possible?
Amazon smells blood
Amazon wants to take advantage of retail pharmacy woes. On October 9, the retail giant with a sprinkling of healthcare announced its intention to expand to 20 new cities in 2025 which is double the size of its current operating footprint. While certain healthcare delivery initiatives have fallen flat (for now), Amazon has found a foothold in pharmacy services, providing same-day delivery (huge), 24/7 access to a pharmacist, and launching and then expanding RxPass in June 2024.
A number of ambient AI updates!
- Microsoft is further expanding its relationship with Epic, working with several large health systems in conjunction with Epic to develop tools like AI service agents and AI ambient tech built for nurses specifically.
- Suki secures $70M in Series D funding as demand surges, and expands its strategic partnership with MedStar Health.
- Abridge launches a research collaborative to explore new medical insights with ambient AI. Riverside Health also chooses Abridge to enhance clinician and patient experiences across care settings.
- NextGen Healthcare introduces AI-driven ambient listening innovation for ophthalmologists and optometrists.
- Nabla’s ambient solution sees rapid adoption at the University of Iowa Health Care with over 900 providers using the technology within 30 days.
More quick hits from the past couple of weeks:
- Overdoses and obesity decline, showing hopeful signs of improving health among Americans.
- TPG acquires Surescripts to enhance patient care and meet evolving healthcare needs.
- Medicaid ‘Unwinding’ expands in many states, reversing initial concerns.
- KFF reports a 7% rise in employer family premiums in 2024.
- Medicare Part D snapshot provides current insights into the prescription drug benefit.
- HHS releases final guidance for the second cycle of the Medicare drug price negotiation program.
- Kroger closes the sale of its specialty pharmacy business to Elevance.
- Cancer centers launch a Cancer AI Alliance with $40M from big tech.
- CMS proposes increased oversight on ACA exchange brokers.
- Kaiser Permanente and HCA HealthONE expand their relationship in Colorado.
- Fullscript acquires Rupa Health as digital health consolidation continues.
- AstraZeneca and Gilead merger would be the biggest in pharma history if it proceeds.
- RWJBarnabas CFO focuses on improving margins with a key strategy.
- Telehealth access for Medicare beneficiaries faces risks as policies shift.
- More Medicare Advantage beneficiaries file appeals for denied services or treatments.
- Texas pauses $116B Medicaid contract awards, to the relief of state health plans.
- Harris to announce a new Medicare home care benefit.
- Physician-owned practices boost satisfaction with key lessons for the industry.
- Nursing is entering a transformational era.
- California hospitals scramble to meet earthquake retrofit deadlines as state limits extensions.
- Massachusetts alleges that Steward Health’s malpractice insurer leaves doctors exposed.
Partnership Pulse
Collaborations, launches, and other tidbits to keep on your radar.
- athenahealth launches athenaOne for Behavioral Health
- WellSpan launches Hippocratic AI’s generative AI healthcare agent.
- SCAN taps Instacart for a new grocery allowance benefit.
- Community Health Systems announces a partnership with Denim Health to scale conversational AI across its patient access centers.
- Ardent Health partners with Qventus to drive strategic perioperative growth.
- Phreesia secures a new contract with CMS as patient activation improves in the first year of the Kidney Care Choices (KCC) Model.
- BoldAge PACE opens a new program in North Charleston, S.C., offering comprehensive care for seniors.
- Ophelia expands opioid addiction treatment in New Jersey, now serving 89% of Medicaid patients.
- Sunoh.ai helps a leading gastroenterology practice increase its daily patient count by 50% through time-saving technology.
- Essence Healthcare expands into Chicago.
- Bon Secours Mercy Health opens a state-of-the-art cardiovascular surgery center in Henrico, Virginia.
- Concentra opens a new medical center in Orlando, Florida.
- Mary Washington Healthcare outsources its revenue cycle management to Ensemble.
- Ambulnz by DocGo renews its partnership with Bayhealth in Delaware, extending the contract for three years.
- Emory Healthcare continues its collaboration with Anthem Blue Cross and Blue Shield to improve health outcomes.
- Carrum Health pioneers value-based treatment for America’s substance use epidemic.
Recent, Notable Fundraises
- Praia Health raises Series A funding to bring an ecommerce experience to patient engagement.
- Air Doctor raises $20M to help travelers find doctors while abroad.
- Rezilient Health announces its Series A funding raise.
- Summit Partners raises $9.5 billion for its twelfth U.S. growth equity fund.
- StrataPT secures $25M to support outpatient therapy practices.
- Rippl raises $23M for its virtual dementia care platform.
- Rezilient Health scores $10M for hybrid primary care services.
- Empathy Health Technologies raises $2.8M for its Sober Sidekick app.
- Eleanor Health raises $30M to transform substance use disorder care.
- Shore Capital Partners closes nearly $2 billion across three funds.
- MARAbio raises $15M for a blood test that detects autism.
- Suki secures $70M in Series D funding and expands its partnership with MedStar Health.
- Glooko raises $100M in Series F and names a new CEO.
- Nym Health announces $47M growth investment to advance its autonomous medical coding engine.
Hospitalogy Top Reads
My favorite healthcare essays from the week
Bain released a really interesting report highlighting the differences in physician career satisfaction between working at a private practice vs. hospital employment. TL;DR – there are opportunities for improvement in the hospital setting centered around comp (of course – aren’t we all), autonomy/decision-making ability, manageable workloads, and adequate staffing.
And on that physician front…Health Affairs published a thoughtful article discussing physician compensation design and how its complexities – especially within alternative payment models – might be reformed to drive forward transformation in the industry.
Rock Health published its Q3 funding report including the following highlights:
- $2.4B raised across 110 deals, down from 136 and 133 in Q1 and Q2
- YTD funding hits $8.2B
- Investors are making fewer, more focused bets with consistent check sizes
- Digital health and point solution consolidation is happening with a number of deals cited (Commure + Augmedix, Fabric, DarioHealth))
And in case you missed it: I documented Maven Clinic’s 10 year, $1.7B journey to becoming the largest women’s health startup here.
