INSUBCONTINENT EXCLUSIVE:
If you don''t think the healthcare market is prepping for the radical transformations that remote care, persistent diagnostics, as well as
and monitoring and improving targeted treatments are going to bring to the industry, think again.
Healthcare companies are steeling
themselves for the shift in healthcare services in the most desperate way they can — by launching venture funds
The latest to make the move is Cigna, the multi-billion-dollar healthcare insurer which is now launching a $250 million venture fund called
Cigna Ventures.
Starting a venture fund has often been the last, worst best hope of corporations that have been overtaken by dramatic
changes in technological platforms
At the tail end of the last internet bubble, as everything was about to fall apart, big companies began to realize that technology was
bringing hordes of new barbarians to the gate
And they swung into action to finance these companies, and get a window into them, even as the hordes were immolating themselves on pyres of
wasted cash and incomprehensible business models.
This time, corporations in industries like health insurance may not have the luxury of
startup ignorance to protect them from the slow march of progress.
The mighty combination of Amazon, Berkshire Hathaway and JP Morgan
Chaseloom large in the visions (or nightmares) of healthcare services providers — and the potential for a single-payor healthcare system
in the United States can''t be far behind
And while one (ahem… single payor) is almost surely the stuff of nightmares, the announcement of a new chief operating officer is making
the venture increasingly real.
Amazon, JPMorgan and Berkshire Hathaway to build their own healthcare company
Cigna says it will focus on
investing in companies that will bring improved care quality, affordability, choice and greater simplicity to customers and clients in three
strategic areas: insights and analytics; digital health and retail; and care delivery and management.
Companies in the portfolio include
Omada Health, a digital therapeutics company treating chronic diseases; Prognos, a predictive analytics company for healthcare; Contessa
Health, a home-patient care service; Mdlive, which provides remote health consultations; and Cricket Health, a special kidney care
provider.
Cigna commitment to improving the health, well-being and sense of security of the people we serve is at the front and center of
everything we do,& said Tom Richards, senior vice president and global lead, strategy and business development at Cigna, in a statement
&The venture fund will enable us to drive innovation beyond our existing core business operations, and incubate new ideas, opportunities and
relationshipsthat have the potential for long-term business growth and to help our customers.
Cigna has been spending like a drunken sailor
to acquire businesses in an effort to build out an organization to withstand the assault of Amazonians, the government and upstart startups
Its stock fell off a cliff in March after it announced the $67 billion acquisition of ExpressScripts, months before Amazon acquired PillPack
in a roughly $1 billion transaction.
Amazon buys PillPack, an online pharmacy, for just under $1B
Cigna had invested in startups before
the creation of this new venture fund
According to Crunchbase, the company investment activity in startupland dates back to 2016.
Our partnership with Cigna has been about so
much more than capital,& said Sean Duffy, co-founder and CEO of Omada
&The ability to collaborate with, learn from, and integrate deeply with a health services company so dedicated to delivering a 21st-century
care experience to its customers and clients has enabled us to accelerate innovation, advance our capabilities, and grow our customer base.
