This issue of The Strategist includes:
Babylon Health goes private and wipes out shareholders’ values
Elevance opens first brick-and-mortar clinic for behavioral health
CVS forecasts a $1B loss due to star ratings drop
Included Health partners with Dispatch Health on virtual-to-home model
Key Takeaways:
Babylon Health's recent struggles, marked by a sharp decline in stock value and a decision to go private, highlight the challenges faced by digital health disruptors.
Babylon's financial woes, exacerbated by costly acquisitions and a failed SPAC strategy, underscore the risks associated with rapid expansion and ambitious growth targets in the healthcare sector.
Carelon, the care delivery services arm of Elevance, announced it has opened its first brick-and-mortar location.
In a recent SEC filing, CVS Health said it expects its insurance arm’s operating income in 2024 will be reduced by between $800M and $1B due to a one-star rating decrease (from 4.5 to 3.5) issued by CMS for its flagship Aetna National PPO plan.
Virtual care provider Included Health announced a collaboration with in-home urgent care provider DispatchHealth, which will augment the former’s digital services with an array of Dispatch’s diagnostic services including remote EKG or ultrasounds, medicine administration, and wound or catheter care.