Optum buys naviHealth for reported $1 billion; Amwell raises $194 million in Series C

In non-COVID-19 news, Optum has confirmed to industry press that they have acquired post-acute management company naviHealth. Becker’s HealthIT cites sources that the purchase price is in the vicinity of $1 billion. Continuing their PAC-MAN path, this pharmacy benefit, population health, and care services wing of UnitedHealth Group in the past six months finalized the purchase of DaVita Medical Group from renal treatment giant DaVita for over $4.3 bn and is reportedly closing on a full acquisition of virtual behavioral health provider AbleTo [TTA 29 Apr] for a less stunning $470 million.

naviHealth provides post-acute care clinical decision-making tools that manage pre and post-acute care as part of value-based care programs such as the Bundled Payments for Care Improvement (BPCI) program with CMS. Their customer base includes health plans (4.5 million members within Medicare Advantage alone), over 140 hospitals, and post-acute care providers such as nursing homes, LTC facilities, rehabilitation, and home health. The company will retain current management and staff, and operate as a stand-alone company within OptumHealth. It’s a well-paid exit for Cardinal Health and Clayton, Dubilier & Rice. Also MedCityNews

Amwell raises $194 million in a second Series C. The former American Well did not need telehealth to receive a gratifying boost from its investors Allianz X and Takeda Pharmaceuticals. This follows on a February $60 million venture round from Chetrit Ventures (BostInno). Amwell has raised $711 million in nine funding rounds (Crunchbase). Their main business has been with payers, health systems, and employers. In April, they added a branded program, Amwell Private Practice, for practices under 100 providers for these mostly shuttered offices to reach their patients at home and to continue care. Release, Mobihealthnews.

AARP/Rock Health 2017 Aging in Place $50K Challenge–deadline 2 Oct!

One week to go! The 2017 Aging in Place Challenge, sponsored by the AARP Foundation and Rock Health, is calling for digital health companies to improve the lives of vulnerable seniors (their words, not this Editor’s) and reduce unnecessary healthcare utilization for older Americans. The Challenge is interested in four areas:

  • Reducing hospital readmissions
  • Avoiding penalties from providers
  • Providing post-acute care assistance
  • Increasing overall patient satisfaction

Another requirement: competitors should have “a good handle on product-market-fit and an ARR (annual recurring revenue) of at least $100K.”

Apply now through 2 October, with the top five finalists to be announced on November 6. The pitch event will be at Rock Health in San Francisco during the week of December 11th with one winner selected. More information and application link here.