Innovative, Privately Backed Primary Care Models Receive the Greatest Applause From Panelists at SVB Leerink Round Table Meeting.
Recently, agilon health CEO Ron Kuerbitz was a presenter at SVB Leerink ‘Disrupters at the Gate Roundtable’ meeting. In a summary of that meeting, many healthcare executives agreed that innovative start-ups will be the agents of change to drive affordability, quality, and outcomes in the Healthcare Services landscape. Healthcare executives also said they believe that partnerships with well capitalized, managed care organizations (MCOs) will be the catalyst for broader adoption. Interestingly, while Wall Street is focused on pharmacy benefit managers and prescription drugs; disruptive iPrimary Care models, largely in Medicare Advantage (MA), received the most airtime during the meeting. Following is an excerpt from an SVB Leerink newsletter recapping the event:
We were fortunate to have hosted the CEOs & C-suite of five of the top privately-backed primary care models across Alignment: agilon health, Village MD, Iora and ChenMed. All make a meaningful dent in the medical cost of healthcare as seen by attractive mid-sixties to high seventies MLRs, and attractive net promoter scores (NPS) in the high sixties to as much as nineties, well above typical health plan offerings. Not surprisingly, MA is the most impactful payor segment, though Village MD uniquely also manages commercial, while agilon health focuses on MA & Medicaid. Scalability varies widely with models that embed within existing primary care practices most likely to scale (agilon health, Village MD), while purpose-built models (Iora, ChenMed) have a longer ramp. The primary care leaders do see value from MCO partners given the balance sheet, regulatory compliance, and sales & distribution. The 2020 rate notice is viewed as friendly, with the move to 50/50 health risk assessment (HRA)/encounter data seen as manageable.