Khosla Ventures leads Even’s $5M seed to give India the kind of healthcare their insurance doesn’t

The global pandemic highlighted inefficiencies and inconsistencies in healthcare systems around the world. Even co-founders Mayank Banerjee, Matilde Giglio and Alessandro Ialongo say nowhere is this more evident than in India, especially after the COVID death toll reached 4 million this week.

The Bangalore-based company received a fresh cash infusion of $5 million in seed funding in a round led by Khosla Ventures, with participation from Founders Fund, Lachy Groom and a group of individuals including Palo Alto Networks CEO Nikesh Arora, CRED CEO Kunal Shah, Zerodha founder Nithin Kamath and DST Global partner Tom Stafford.

Even, a healthcare membership company, aims to cover what most insurance companies in the country don’t, including making going to a primary care doctor as easy and accessible as it is in other countries.

Banerjee grew up in India and said the country is similar to the United States in that it has government-run and private hospitals. Where the two differ is that private health insurance is a relatively new concept for India, he told TechCrunch. He estimates that less than 5% of people have it, and even though people are paying for the insurance, it mainly covers accidents and emergencies.

This means that routine primary care consultations, testings and scans outside of that are not covered. And, the policies are so confusing that many people don’t realize they are not covered until it is too late. That has led to people asking doctors to admit them into the hospital so their bills will be covered, Ialongo added.

Banerjee and Giglio were running another startup together when they began to see how complicated health insurance policies were. About 50 million Indians fall below the poverty line each year, and many become unable to pay their healthcare bills, Banerjee said.

They began researching the insurance industry and talking with hospital executives about claims. They found that one of the biggest issues was incentive misalignment — hospitals overcharged and overtreated patients. Instead, Even is taking a similar approach to Kaiser Permanente in that the company will act as a service provider, and therefore, can drive down the cost of care.

Even became operational in February and launched in June. It is gearing up to launch in the fourth quarter of this year with more than 5,000 people on the waitlist so far. Its health membership product will cost around $200 per year for a person aged 18 to 35 and covers everything: unlimited consultations with primary care doctors, diagnostics and scans. The membership will also follow as the person ages, Ialongo said.

The founders intend to use the new funding to build out their operational team, product and integration with hospitals. They are already working with 100 hospitals and secured a partnership with Narayana Hospital to deliver more than 2,000 COVID vaccinations so far, and more in a second round.

“It is going to take a while to scale,” Banerjee said. “For us, in theory, as we get better pricing, we will end up being cheaper than others. We have goals to cover the people the government cannot and find ways to reduce the statistics.”

 

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What Convinced Me to Start Wearing Sun Protection

I’ve failed to practice what I preached about limiting sun exposure, but a new report has prompted me to reform.

#kaiser-permanente, #skin, #skin-cancer, #sun, #sunlight, #sunscreen, #suntan, #ultraviolet-light

K Health expands into virtual childcare and raises $132 million at a $1.5 billion valuation

K Health, the virtual health care provider that uses machine learning to lower the cost of care by providing the bulk of the company’s health assessments, is launching new tools for childcare on the heels of raising cash that values the company at $1.5 billion.

The $132 million round raised in December will help the company expand and help pay for upgrades including an integration with most electronic health records — an integration that’s expected by the second quarter.

Throughout 2020 K Health has leveraged its position operating at the intersection of machine learning and consumer healthcare to raised $222 million in a single year.

This appetite from investors shows how large the opportunity is in consumer healthcare as companies look to use technology to make care more affordable.

For K Health, that means a monthly subscription to its service of $9 for unlimited access to the service and physicians on the platform, as well as a $19 per-month virtual mental health offering and a $19 fee for a one-time urgent care consultation.

To patients and investors the pitch is that the data K Health has managed to acquire through partnerships with organizations like the Israel health maintenance organization Maccabi Healthcare Services, which gave up decades of anonymized data on patients and health outcomes to train K Health’s predictive algorithm, can assess patients and aid the in diagnoses for the company’s doctors.

In theory that means the company’s service essentially acts as a virtual primary care physician, holding a wealth of patient information that, when taken together, might be able to spot underlying medical conditions faster or provide a more holistic view into patient care.

For pharmaceutical companies that could mean insights into population health that could be potentially profitable avenues for drug discovery.

In practice, patients get what they pay for.

The company’s mental health offering uses medical doctors who are not licensed psychiatrists to perform their evaluations and assessments, according to one provider on the platform, which can lead to interactions with untrained physicians that can cause more harm than good.

While company chief executive Allon Bloch is likely correct in his assessment that most services can be performed remotely (Bloch puts the figure at 90%), they should be performed remotely by professionals who have the necessary training.

There are limits to how much heavy lifting an algorithm or a generalist should do when it comes to healthcare, and it appears that K Health wants to push those limits.

“Drug referrals, acute issues, prevention issues, most of those can be done remotely,” Bloch said. “There’s an opportunity to do much better and potentially cheaper. 

K Health has already seen hundreds of thousands of patients either through its urgent care offering or its subscription service and generated tens of millions in revenue in 2020, according to Bloch. He declined to disclose how many patients used the urgent care service vs. the monthly subscription offering.

Telemedicine companies, like other companies providing services remotely, have thrived during the pandemic. Teladoc and Amwell, two of the early pioneers in virtual medicine have seen their share prices soar. Companies like Hims, that provide prescriptions for elective conditions that aren’t necessarily covered by health, special purpose acquisition companies at valuations of $1.6 billion.

Backing K Health are a group of investors led by GGV Capital and Valor Equity Partners. Kaiser Permanente’s pension fund and the investment offices of the owners of 3G Capital (the Brazilian investment firm that owns Burger King and Kraft Heinz), along with 14W, Max Ventures, Pico Partners, Marcy Venture Partners, Primary Venture Partners and BoxGroup, also participated in the round. 

Organizations working with the company include Maccabi Healthcare; the Mayo Clinic, which is investigating virtual care models with the company; and Anthem, which has white labeled the K Health service and provides it to some of the insurer’s millions of members.

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Inflatable Costume May Be Behind Outbreak at California Hospital

An employee at a hospital in San Jose wore an “air-powered” costume on Christmas. Within days, 44 staff members had tested positive for the coronavirus, a spokeswoman said.

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Osso VR raises $14 million to bring virtual reality to surgical and medical device training

It seems that distance learning is even coming for the healthcare industry.

As remote work becomes the order of the day in the COVID-19 era, any tool that can bring training and education services to folks across industries is gaining a huge amount of investor interest — and that includes healthcare.

Virtual reality tools like those on offer from Osso VR have been raising investor dollars at a rapid clip, and now the Palo Alto, Calif.-based virtual reality distribution platform joins their ranks with a $14 million round of financing.

The money came from a clutch of investors led by the investment arm of Kaiser Permanente, a healthcare giant whose network of managed care facilities and services spans the country. Previous backers and new investors like SignalFire, GSR, Scrum Ventures, Leslie Ventures and OCA Ventures, also participated in the funding. 

Osso has seen its adoption skyrocket during the pandemic as medical device manufacturers and healthcare networks turn to training tools. that don’t require a technician to be physically present.

According to company founder Dr. Justin Barad, the market for medical device education services alone is currently around $3 billion to $5 billion and growing rapidly.

Staffed by a team that comes from Industrial Light and Magic, Electronic Arts, Microsoft, and Apple, Osso VR makes generic educational content for training purposes and then produces company specific virtual reality educational videos for companies like Johnson and Johnson. Those productions can run the gamut from instructional videos on vascular surgery to robotic surgery training tips and tricks.

While Kaiser Permanente Ventures’ Amy Belt Raimundo said that the strategic investor’s decisions to commit capital aren’t based on what Kaiser Permanente uses, necessarily, the organization does take its cues from what employees want.

“We don’t tie our investment to a deployment or customer contract, but we look for the same signals within Kaiser Permanente,” said Belt Raimundo. But the organization did have employees interested in using the Osso technology. “We made the announcement that we are looking at [Osso VR] technology for use. And that’s where the investment and commercial decision was signaling off of each other, because the response showed that there was an unmet need there,” she said.

Osso VR currently has around 30 customers, 12 of which are in the medical device space. The company uses Oculus Quest headsets and is deployed in 20 teaching hospitals across 20 different countries. In a recent validation study, surgeons training with Osso VR showed a 230 percent improvement in overall surgical performance, the company said in a statement.

The goal, according to Barad, a lifelong coder with a game development credit from Activision/Blizzard, is to democratize healthcare. “This is about improving patient outcomes, democratizing access, and improving education,” said Barad. “Now that the technology is growing and maturing and VR is growing as a platform, we can attack the broader problems,” in healthcare, he said.

 

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Obesity Raises the Risk of Death From Covid-19 Among Men

Obesity is not an independent risk for women, according to a new study, perhaps because their fat is distributed differently.

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Can API vendors solve healthcare’s data woes?

A functioning healthcare system depends on caregivers having the right data at the right time to make the right decision about what course of treatment a patient needs.

In the aftermath of the COVID-19 epidemic and the acceleration of the consumer adoption of telemedicine, along with the fragmentation of care to a number of different low-cost providers, access to a patient’s medical records to get an accurate picture of their health becomes even more important.

Opening access to developers also could unlock new, integrated services that could give consumers a better window into their own health and consumer product companies opportunities to develop new tools to improve health.

While hospitals, urgent care facilities and health systems have stored patient records electronically for years thanks to laws passed under the Clinton administration, those records were difficult for patients themselves to access. The way the system has been historically structured has made it nearly impossible for an individual to access their entire medical history.

It’s a huge impediment to ensuring that patients receive the best care they possibly can, and until now it’s been a boulder that companies have long tried to roll uphill, only to have it roll over them.

Now, new regulations are requiring that the developers of electronic health records can’t obstruct interoperability and access by applications. Those new rules may unlock a wave of new digital services.

At least that’s what companies like the New York-based startup Particle Health are hoping to see. The startup was founded by a former emergency medical technician and consultant, Troy Bannister, and longtime software engineer for companies like Palantir and Google, Dan Horbatt.

Particle Health is stepping into the breach with an API -based solution that borrows heavily from the work that Plaid and Stripe have done in the world of financial services. It’s a gambit that’s receiving support from investors including Menlo Ventures, Startup Health, Collaborative Fund, Story Ventures and Company Ventures, as well as angel investors from the leadership of Flatiron Health, Clover Health, Plaid, Petal and Hometeam.

Image via Getty Images / OstapenkoOlena

“My first reaction when I met Troy, and he was describing what they’re doing, was that it couldn’t be done,” said Greg Yap, a partner with Menlo Ventures, who leads the firm’s life sciences investments. “We’ve understood how much of a challenge and how much of a tax the lack of easy portability of data puts on the healthcare system, but the problem has always felt like there are so many obstacles that it is too difficult to solve.”

What convinced Yap’s firm, Menlo Ventures, and the company’s other backers, was an ability to provide both data portability and privacy in a way that put patients’ choice at the center of how data is used and accessed, the investor said.

“[A service] has to be portable for it to be useful, but it has to be private for it to be well-used,” says Yap. 

The company isn’t the first business to raise money for a data integration service. Last year, Redox, a Madison, Wis.-based developer of API services for hospitals, raised $33 million in a later-stage round of funding. Meanwhile, Innovaccer, another API developer, has raised more than $100 million from investors for its own take.

Each of these companies is solving a different problem that the information silos in the medical industry presents, according to Patterson. “Their integrations are focused one-to-one on hospitals,” he said. Application developers can use Redox’s services to gain access to medical records from a particular hospital network, he explained. Whereas using Particle Health’s technology, developers can get access to an entire network.

“They get contracts and agreements with the hospitals. We go up the food chain and get contracts with the [electronic medical records],” said Patterson.

One of the things that’s given Particle Health a greater degree of freedom to acquire and integrate with existing healthcare systems is the passage of the 21st Century Cures Act in 2016. That law required that the providers of electronic medical records like Cerner and EPIC had to remove any roadblocks that would keep patient data siloed. Another is the Trusted Exchange Framework and Common Agreement, which was just enacted in the past month.

“We don’t like betting on companies that require a change in law to become successful,” said Yap of the circumstances surrounding Particle’s ability to leapfrog well-funded competitors. But the opportunity to finance a company that could solve a core problem in digital healthcare was too compelling.

“What we’re really saying is that consumers should have access to their medical records,” he said.

Isometric Healthcare and technology concept banner. Medical exams and online consultation concept. Medicine. Vector illustration

This access can make consumer wearables more useful by potentially linking them — and the health data they collect — with clinical data used by physicians to actually make care and treatment decisions. Most devices today are not clinically recognized and don’t have any real integration into the healthcare system. Access to better data could change that on both sides.

“Digital health application might be far more effective if it can take into context information in the medical record today,” said Yap. “That’s one example where the patient will get much greater impact from the digital health applications if the digital health applications can access all of the information that the medical system collected.” 

With the investment, which values Particle Health at roughly $48 million, Bannister and his team are looking to move aggressively into more areas of digital healthcare services.

“Right now, we’re focusing on telemedicine,” said Bannister. “We’re moving into the payer space… As it stands today we’re really servicing the third parties that need the records. Our core belief is that patients want control of their data but they don’t want the stewardship.”

The company’s reach is impressive. Bannister estimates that Particle Health can hit somewhere between 250 and 300 million of the patient records that have been generated in the U.S. “We have more or less solved the fragmentation problem. We have one API that can pull information from almost everywhere.”

So far, Particle Health has eight live contracts with telemedicine and virtual health companies using its API, which have pulled 1.4 million patient records to date.

The way it works right now, when you give them permission to access your data it’s for a very specific purpose of use… they can only use it for that one thing. Let’s say you were using a telemedicine service. I allow this doctor to view my records for the purpose of treatment only. After that we have built a way for you to revoke access after the point,” Bannister said.

Particle Health’s peers in the world of API development also see the power in better, more open access to data. “A lot of money has been spent and a lot of blood and sweat went into putting [electronic medical records] out there,” said Innovaccer chief digital officer Mike Sutten.

The former chief technology officer of Kaiser Permanente, Sutten knows healthcare technology. “The next decade is about ‘let’s take advantage of all of this data.’ Let’s give back to physicians and give them access to all that data and think about the consumers and the patients,” Sutten said.

Innovaccer is angling to provide its own tools to centralize data for physicians and consumers. “The less friction there is in getting that data extracted, the more benefit we can provide to consumers and clinicians,” said Sutten.

Already, Particle Health is thinking about ways its API can help application developers create tools to help with the management of COVID-19 populations and potentially finding ways to ease the current lockdowns in place due to the disease’s outbreak.

“If you’ve had an antibody test or PCR test in the past… we should have access to that data and we should be able to provide that data at scale,” said Bannister. 

“There’s probably other risk-indicating factors that could at least help triage or clear groups as well… has this person been quarantined has this person been to the hospital in the past month or two… things like that can help bridge the gap,” between the definitive solution of universal testing and the lack of testing capacity to make that a reality, he said. 

“We’re definitely working on these public health initiatives,” Bannister said. Soon, the company’s technology — and other services like it — could be working behind the scenes in private healthcare initiatives from some of the nation’s biggest companies as software finally begins to take bigger bites out of the consumer health industry.

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