ACO Vendor Flush with Cash Following IPO
Evolent Health, founded in 2011 by UPMC Health Plan and The Advisory Board Company to offer a suite of consulting and technology services to emerging accountable care organizations, went public on June 5.
Evolent Health, founded in 2011 by UPMC Health Plan and The Advisory Board Company to offer a suite of consulting and technology services to emerging accountable care organizations, went public on June 5.
Shortly before its initial public offering of stock, the company raised the number of shares from 10 million to 11.5 million, and increased the price per share from $14-16 to $17. The stock opened at $18 per share and closed at $18.86. The $17 sale price before trading started netted $195.5 million, and underwriters can buy another 1.725 million shares, which could increase proceeds up to $224.8 million.
Also See: Fitbit Seeks Up to $478 Million in IPO
Currently serving payers and providers in 25 markets with about 25 clients, Evolent Healths technology platform includes:
*Integration services to link clinical, financial and administrative systems to support core and ancillary provider services such as assisted living, home care, clinics, pharmacies, labs, dental, vision and behavioral health, as well as supporting biometrics, self-assessments, payer claims and eligibility, and admission/discharge/transfer processes;
*Central management of patient clinical profiles, stratification, risk prediction and clinical interventions to drive more efficient care and workflows;
*Electronic health records optimization to support actionable insights being presented in the EHR, health maintenance reminders to close care gaps, more efficient quality documentation and better care coordination; and
*Data analytics to monitor performance metrics, along with workflow and utilization management tools.
In its S-1 filing with the Securities and Exchange Commission, Evolent Health noted that about 10 percent of healthcare payments today are paid through value-based reimbursement programs, including capitation models, but notes estimates that half of such payments will be made by 2020. There were 120 provider owned health plans as of 2010 and this number continues to grow. The number of ACOs constructed to manage capitated or value-based arrangements with existing insurance companies or government payers grew to 742 by the end of 2014.
For now, the companys revenue is rapidly growing but so are losses. In 2013, Evolent Health had revenue of $40.3 million with a net loss of about $32.8 million. Revenue totaled $100.9 million in 2014 with a net loss of nearly $52.3 million.
Shortly before its initial public offering of stock, the company raised the number of shares from 10 million to 11.5 million, and increased the price per share from $14-16 to $17. The stock opened at $18 per share and closed at $18.86. The $17 sale price before trading started netted $195.5 million, and underwriters can buy another 1.725 million shares, which could increase proceeds up to $224.8 million.
Also See: Fitbit Seeks Up to $478 Million in IPO
Currently serving payers and providers in 25 markets with about 25 clients, Evolent Healths technology platform includes:
*Integration services to link clinical, financial and administrative systems to support core and ancillary provider services such as assisted living, home care, clinics, pharmacies, labs, dental, vision and behavioral health, as well as supporting biometrics, self-assessments, payer claims and eligibility, and admission/discharge/transfer processes;
*Central management of patient clinical profiles, stratification, risk prediction and clinical interventions to drive more efficient care and workflows;
*Electronic health records optimization to support actionable insights being presented in the EHR, health maintenance reminders to close care gaps, more efficient quality documentation and better care coordination; and
*Data analytics to monitor performance metrics, along with workflow and utilization management tools.
In its S-1 filing with the Securities and Exchange Commission, Evolent Health noted that about 10 percent of healthcare payments today are paid through value-based reimbursement programs, including capitation models, but notes estimates that half of such payments will be made by 2020. There were 120 provider owned health plans as of 2010 and this number continues to grow. The number of ACOs constructed to manage capitated or value-based arrangements with existing insurance companies or government payers grew to 742 by the end of 2014.
For now, the companys revenue is rapidly growing but so are losses. In 2013, Evolent Health had revenue of $40.3 million with a net loss of about $32.8 million. Revenue totaled $100.9 million in 2014 with a net loss of nearly $52.3 million.
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