Oscar Health putting $1.4 bn in IPO cash to work. Oscar Health announced the formation of a stand-alone platform, +Oscar, to provide healthcare partners with a range of services to benefit providers, payers, and patients/members. The new unit will be headed by Meghan Joyce as COO and EVP. There is no website yet for +Oscar nor mention of a start of business date but an email contact for the unit.
+Oscar will offer a range of services to enable partners to:
- Lower costs through an efficient, full-stack platform and health plan infrastructure–integrated, end-to-end health plan services. Oscar is claiming they can achieve the administrative efficiency of far larger health plans, targeting provider-sponsored and regional health plans.
- Create member experiences that are marketable and can drive growth and retention; that catch the attention of brokers and members plus enables flexible plan designs that can save money for members. Oscar is also hiring out Care Teams.
- Power effective medical cost management and deliver on value-based care by closing care gaps, improving quality scores, enhancing value capture, and more.
- Empower providers to manage care at scale: bi-directional integrations with existing electronic medical records and workflow tools.
Why it’s important. It’s an interesting and fast redeployment of assets developed to run Oscar’s plans and services, repackaged to sell to smaller health plans. Large insurers took years to realize that they could package and sell their systems to other health plans and employers; independent companies do the same (for instance, network management and provider credentialing). Oscar is also partnering with Cigna on co-branded California health plans. Selling the technology can create real revenue (ask UHG’s Optum), even more so than health plans. It also might help their profitability problem [TTA 9 Feb]. Release, FierceHealthcare, Becker’s.