Humana, Healthrageous and some object lessons

October 16, 2013 | by

The acquisition of the assets of Partners HealthCare spinoff Healthrageous by insurance and health service giant Humana is reverberating in the field in the US, particularly those in the buzziest digital health sectors. Some may look away, but a hard look provides some object lessons at the sheer unpredictability of the field for those who are innovating and attempting to shape consumer behavior and health. (Not behavioral health)

  • Healthrageous had an impressive lineage and credibility. Developed over three years at Partners HealthCare, it was spun off in 2010, PHC members on the board, leadership from well-known/regarded figures such as Rick Lee and Mary Beth Chalk–and enjoyed abundant, rapid startup funding–$12.5 million in two rounds, the last exactly one year ago, from equally impressive investors, reportedly $15 million total. No raiding the credit cards here.
  • It occupied what everyone for the past few years thought of as a sweet spot–personal health management targeted to employers/benefit managers along with health plans to lower costs that combined sensor-based telehealth data with individualized coaching and feedback–and data from a broad base of 10,000 users. (more…)

First M&A roundup for 3rd quarter: more action, less value, whither digital health?

October 14, 2013 | by

VC/research firm TripleTree is first out of the gate with its roundup of merger and acquisition activity in healthcare, July through September. The news and directions are mixed. Deals are up 28 percent from the two previous quarters but down 12 percent in total deal value. Most are in the healthcare facilities area with home care giant Gentiva acquiring Harden Healthcare and insurance giant Humana adding to its LTC, Medicaid/Medicare portfolio with American Eldercare. 19 healthcare companies had successful IPOs totaling ~$3 billion of transaction value. Two highlighted here are Envision Healthcare Holdings (ambulance and outsourced physician services) and Benefitfocus (benefit administration software and tracking). Given that they are the creator of the iAwards at the annual Wireless-Life Sciences Alliance in May which focuses on digital health, the decidedly non-buzzy companies getting the action here are perhaps another indicator of the funding cooling preceding M&A as projected by Rock Health back in July [TTA 9 July], with their 3rd Quarter report due out shortly.

Another change at Care Innovations

October 8, 2013 | by

Louis Burns, CEO of Care Innovations since its founding in 2011, announced his retirement at the end of this year. His immediate successor starting 7 October as CEO (on his LinkedIn profile, but not on the CI website) is Sean Slovenski, formerly VP for Health and Productivity Solutions at Humana and founder of Hummingbird Coaching Services, a provider of online wellness coaching and behavior management services purchased by Humana in 2010. This follows the retirement earlier this year of Intel-er Doug Busch, formerly COO. Neil Versel interviews Mr. Slovenski for Mobihealthnews, but what strikes this Editor in the interview are three things: his background and demeanor could not be more different than Mr. Burns; his expertise in population health and consumer-directed wellness may indicate a significant directional change for long-term-care focused Care Innovations–certainly away from the Intel/GE mindset; and the outlook continues to be ‘mañana’ for telehealth and telecare. Care Innovations release.