rule of three, LLC

Four major nonprofit health systems have joined forces to create a new for-profit entity called Longitude Health. Baylor Scott & White Health, Memorial Hermann Health System, Novant Health, and Providence are the founding members of the new?solution-oriented?company?for health systems, each committing an undisclosed financial investment to the venture. Longitude aims to tackle pressing issues, including increasing drug access, improving care coordination for Medicare Advantage patients, and streamlining billing processes.? ? Our three things that matter:? ? 1. Longitude Health aims to overcome the internal constraints faced by health systems, providing an external, agile environment that enables innovative responses and strategies.?It will operate as a startup entity, allowing the founding health systems to?contribute ideas?and rapidly develop solutions for health systems. The entity will encompass three initial operating companies, each covering a key domain: pharmaceutical development, care coordination, and billing. 2. The initiative is heavily focused on collaboration and if successful, intends to share its value with organizations across the industry.?In other words, the company will likely share any compelling solutions with other health systems beyond the founding organizations.?Longitude will follow models of other?healthcare?companies such as Civica Rx (non-profit generic drug producer) and Truveta (electronic health record data and analytics). The executives involved in founding Longitude emphasize that collaboration is more functional than executing a one-off project. 3. The four founding health systems intend to invest in the initial operating companies as well as others over the next five years. In the future, Longitude plans to focus on key areas such as transforming business models, improving health system performance, and investing in communities by driving equity value.? ? By uniting resources and expertise, these health systems demonstrate a deeper commitment to value and operational efficiency. As healthcare start-ups and ventures evolve, what insights can we gain from collaborative models that challenge the traditional do-it-yourself approach in healthcare? Which strategy yields more speed to value and investment opportunities? https://lnkd.in/epitnt3K #ro3llc #LongitudeHealth #Healthcare #Solutions #Innovation #StartUp

This year, our CEO, Josh M. Berlin, is honored to be the Summit Chairperson for the Value-Based Care Summit, hosted by The Healthcare Innovation Company (thINc).? ? As Chairperson, Josh will deliver opening remarks and moderate insightful discussions. Some of the dynamic speakers include Lee Handke, CEO of Nebraska Health Network; Eric Gallagher, CEO of Ochsner Health Network; Ryan Tyner, MD, FACS, Chief Medical Officer of Ryse Health; and Conrad Vial, Senior Vice President of Sutter Health and President of Sutter Health Network.? ? The conference will be held from October 28–29 in Washington, D.C. To learn more about the agenda or to register, click here:?https://lnkd.in/exfJmmgQ?(use code SPKR50 for a 50% discount on current ticket rates)? ? Join Josh and other esteemed leaders of national and local organizations as they discuss the policies and strategies that will shape the future of Value-Based Care delivery. The event promises fruitful discussions with perspectives from diverse industry leaders as we collectively move the needle on value and prioritize patient-centric care.? ? Let us know in the comments if you plan to attend!? #ro3llc #thINcValue #ValueBasedCare #Healthcare #Event #Speaker

This week, we're analyzing the latest updates on Risant Health,?the nonprofit health system created by Kaiser Permanente in April 2023. Kaiser announced its Q2 earnings, closely followed by unveiling new plans for North Carolina-based Cone Health.? ? If you missed our previous post about Risant Health, catch up here:?https://lnkd.in/eWgfXAXT ? Our three things that matter:? ? 1. Risant’s decision to acquire Geisinger in March of this year indicates strong returns. Kaiser reported $7.4B in first-quarter income, with about $4.6B attributed to a non-recurring operating gain from the acquisition. Additionally, experts posit that the acquisition is accelerating Kaiser’s performance and operations. The company’s financial reports parallel this theory: in the second quarter, Kaiser’s operating margin rose to 3.1%, up from 2.9% during the same time last year.? ? 2. Kaiser is establishing a strong foothold in value-based care across diverse markets, particularly as it seeks to revolutionize healthcare delivery and access. Risant’s acquisition of Cone Health is expected to be finalized in early 2025, pending regulatory approval. This marks the second major acquisition for Risant, following Geisinger.?While the immediate financial impact on Kaiser’s bottom line may be limited due to its size,?the acquisitions create a strategic pathway for Kaiser to establish itself as a leader in the value-based care sector.? ? 3. Risant plans to invest $1B in Cone Heath over the next five years, underscoring Kaiser’s commitment to this venture and the potential long-term impact of this substantial capital infusion. The investments will focus on?facility upgrades and health equity initiatives. Additionally, the allocation of up to $400 million for integration into the network and $300 million for growth opportunities signals a proactive approach to ensuring Cone Health’s successful assimilation into the Risant ecosystem. As Risant continues to expand its influence in value-based care, what do these developments mean for both patients and other healthcare organizations??Will any challenges arise in integrating these new systems? Source: Healthcare Dive #ro3llc #RisantHealth #KaiserPermanente #ConeHealth #Healthcare #ValueBasedCare

The 2024 March Healthcare Classic runner-up, Evolution of Medicare Advantage (1), is making headlines as predicted by our Selection Committee. ? As MA heads into its annual enrollment period this October, beneficiaries are facing increased challenges and strains caused by the evolving market. With increased regulations from CMS, smaller base payments, and rising healthcare costs, the enrollment process will be more complicated. Adding to the complexities, the presidential election and the late Thanksgiving holiday may delay decision-making until the final week, causing additional stress for enrollees.? ? Our three things that matter:? ? 1. Regulatory and financial pressures are causing major shifts in the MA market. In June, the Office of Inspector General (OIG) announced its intentions to audit MA plans; many were accused of denying post-acute care even in instances where beneficiaries qualified for such healthcare services. With increased scrutiny from the government and rising healthcare costs, MA plans are eliminating certain benefits while exiting less profitable markets. Earlier this week, Humana announced it would exit 13 MA markets. Meanwhile, CVS Health has also downgraded its geographic presence—potentially poised to lose up to 10% of its current MA members. 2. Following increased pressure, tensions are rising between MA plans and the government. The industry is undertaking a seven-figure lobbying campaign to advocate for the importance of MA. This includes digital ads, social media campaigns, and encouraging older adults to share their positive MA experiences with policymakers. While this is not a new tactic, it remains to be seen whether it will counter negative press including fraud allegations and prior authorization denials.? 3. As competition increases, MA plans will need to appeal to beneficiaries’ needs amidst these changes. Not surprisingly, beneficiaries will prioritize stability in benefits when choosing a plan. To stand out, MA plans need to offer exceptional service quality and prioritize effectiveness. Despite downsizing their market presence, a strong emphasis on quality and comprehensive offerings will be crucial for attracting and keeping members. ? How can MA plans effectively balance reduced market access and the elimination of benefits with the need to maintain high-quality offerings for beneficiaries? What strategies should be implemented to address these challenges? Sources: Becker's Healthcare and Healthcare Dive #ro3llc #Healthcare #MedicareAdvantage #MA #MAPlans #Enrollment

NAHQ next, the premier event for healthcare quality and safety, kicks off today! ? Our CEO, Josh M. Berlin, will be moderating a discussion titled, “Taking Quality and Safety to Higher Ground.” The conversation features Stephanie Mercado CAE CPHQ, CEO of the National Association for Healthcare Quality? (NAHQ?), and Jonathan Perlin, President & CEO of The Joint Commission. Both leaders are inspiring advocates and visionaries, on a mission to advance quality and safety while modernizing their respective organizations. ? The 2 ? day virtual event, spanning September 9-11, focuses on the most important issues facing healthcare today. Featuring dozens of respected healthcare leaders, the event unites diverse backgrounds, offering unique insights into revolutionizing quality and safety for better patient outcomes.? ? Discover more about the event:?https://lnkd.in/gEVmQnv4 ? We hope to see you this week! ? #ro3llc #NAHQnext2024 #HealthcareQuality #PatientSafety #Healthcare #Event

In our previous post, we explored the transformative benefits of artificial intelligence (AI) in healthcare, from improved efficiency and advanced data management to automation. This week, we turn our focus to the potential risks and bioethical considerations associated with implementing AI in clinical settings. ? Read the previous post here:?https://lnkd.in/eSJdQQm3 ? Our three things that matter: 1. For AI to truly enhance healthcare, algorithms should be built with demographic data that is inclusive and all-encompassing.?While AI has the potential to improve diagnostics, the tool’s efficacy hinges upon its data inputs. The Federation of American Scientists recently published a report, highlighting that many AI algorithms tend to favor frequent users of healthcare, while using costs to assess needs. The effects of structural and systemic racism have resulted in higher rates of healthcare usage among white patients compared to other racial groups. When combined with these biases in AI, this disparity contributes to more favorable outcomes for white patients. To?avoid exacerbating existing inequities,?AI developers need to prioritize?inclusive datasets and algorithms that support all patients across a range of racial/ethnic groups. 2. Policymakers and legislation should mitigate biases with a multifaceted approach. A?study published in Science Magazine?focused on an AI tool that is commonly used to predict healthcare costs. The study posited that the use of AI resulted in sicker Black patients receiving the same care as healthier white patients, despite requiring more complex care. This ultimately led to worse health outcomes for Black patients. To counteract this, policymakers must evaluate AI in clinical settings and implement policies to eliminate practices that disadvantage patients. Further, policymakers should allocate resources to underserved communities, enforcing standards and safeguarding the fair use of such tools across all populations. 3. Transparency at every step from data inputs to usage is crucial for creating equitable AI tools. Regular data audits, trend analyses, and performance evaluations are necessary to identify and correct biases.?Further, organizations should be transparent about how AI is utilized, especially in patient settings.?A commitment to ongoing refinement fosters accountability for AI systems, ensuring they serve all patients fairly and effectively. ? How can we guarantee that the implementation of AI in healthcare addresses existing disparities rather than reinforces them? How can developers, policymakers, investors, and healthcare leaders collaborate to ensure the equitable use of AI in clinical settings? Link to study: https://lnkd.in/dgjyKFXY #ro3llc #ArtificialIntelligence #AI #Healthcare #HealthcareAI #HealthEquity

As several major shifts occur in the Georgia healthcare landscape, our CEO, Josh M. Berlin shared his insights with KFF Health News.? ? The shuttering of Atlanta Medical Center and Southwest Georgia Regional Medical Center highlights significant challenges facing urban and rural hospitals. Both hospitals closed due to the same financial strains, one of which was fewer patients with private insurance to drive reimbursement. However, communities across the state are feeling the impacts of these closures.? ? In April, Governor Brian Kemp signed new legislation, aiming to address these issues by amending the state's certificate of need system. This change allows health systems to block potential competitors on the basis that there is an inadequate need for services.? ? Our CEO emphasized the challenges facing the healthcare market in the state, noting that it would be a significant financial commitment to open a new inner-city hospital. With limited access to care and a large uninsured/Medicaid population, there is "a community that is struggling to find care in the wake of the Atlanta Medical Center closure.” Read the full article here:?https://lnkd.in/eQh6eMfm #ro3llc #Healthcare #HealthcareAccess #GeorgiaHealthcare #Hospitals

Excitement is building as we prepare for NAHQ next! Our CEO, Josh M. Berlin, moderates a conversation titled, “Taking Quality and Safety to Higher Ground,” featuring the National Association for Healthcare Quality? (NAHQ?)’s CEO, Stephanie Mercado CAE CPHQ, and The Joint Commission CEO, Dr. Jonathan Perlin. The conversation will continue the incredible agenda at NAHQ next, the premier convergence for enhancing healthcare quality and safety. The virtual event will be held this September from the 9th through the 11th, featuring over 150 speakers. To register, click here: https://next.nahq.org/ #ro3llc #NAHQ #NAHQnext24 #Healthcare #HealthcareQuality #HealthcareSafety #Event

As the focus on Artificial Intelligence (AI) continues to grow, the healthcare sector is experiencing numerous advancements in this space, including acquisitions, funding, and partnerships. Our three things that matter: 1. AI has the potential to enhance efficiency in healthcare delivery. GE HealthCare recently announced its plans to acquire Intelligent Ultrasound’s clinical AI software business.?The $51M deal is expected to close in Quarter 4 of this year. The tool, designed to improve ultrasound efficiency, will increase convenience for patients and providers. GE HealthCare hopes to improve efficiencies with a broad impact by implementing the service across its ultrasound portfolios.? ? 2. AI could revolutionize the way healthcare data is analyzed and stored. GE HealthCare is partnering with Amazon Web Services (AWS) to build new generative AI models that will analyze complex medical data. Further, after a successful pilot, Ochsner Health announced it would enter an agreement with DeepScribe. The technology transcribes doctor-patient conversations, creating comprehensive clinical notes, and will be available to Ochsner’s 4,700 physicians. Currently, the healthcare industry generates approximately one-third of all global data. However, much of that data is disparate, not easily accessible, and in inconsistent file formats. As seen in the preliminary stages with these tools, AI may be a widespread solution to condense complex clinical data and improve patient access to medical records.? ? 3. Through automation and rapid problem-solving, AI offers compelling cost-saving solutions. Qventus, Inc’ AI tool predicts operational barriers and recommends solutions to reduce excess patient days. The tool—currently in its third generation—is being beta-tested at OhioHealth. In less than six months, the health system has already saved an astonishing $1.7M.?This early success suggests a significant potential for AI-driven solutions to streamline hospital operations, reduce costs, and improve patient experiences.? ? As AI continues to infiltrate the market, what challenges may arise in the integration and widespread adoption of these technologies? How will AI change both healthcare operations and the patient experience? #ro3llc #Healthcare #ArtificialIntelligence #AI #GenAI #CostSavings #Partnerships

At the end of June, private equity firm Altaris, LLC announced its plans to acquire Sharecare, a digital health company, for $518M. Sharecare has an app that allows patients to store their health information, such as lab results and medications. The app also allows users to track their steps, vital signs, sleep data, and health insurance information. The deal is expected to close in the last half of 2024. Following the acquisition, Altaris plans to take Sharecare private.? ? Other health tech startups, such as Function Health, are gaining significant attention within the industry. For a $499 annual membership, Function Health offers consumers access to over 100 lab tests including hormones, thyroid, immunity, and cancer signals. Impressively, the platform now has 50,000 users and a waitlist of over 200,000 people. To date, the company has raised $53M, with backing from celebrities such as Kevin Hart and Matt Damon. Across digital health startups, funding is steadily increasing. According to a report published by Rock Health, digital health startups raised a total of $5.7B in the first half of 2024, with a trajectory to surpass 2023 funding.? ? Our three things that matter:? ? 1. There is renewed investor interest in digital health startups. This surge is largely driven by interest in Artificial Intelligence (AI). According to the Rock Health report, one in three investment dollars went to companies utilizing AI in the first half of the year. ? 2. Private equity firms are increasingly acquiring digital health startups, with ten acquisitions in the first half of 2024 compared to nine total in 2023.?The reason for this occurrence is twofold: private equity firms view opportunities for rapid growth—especially with innovative tools such as AI—while larger digital health companies remain conservative in their acquisitions. Notably, acquisitions by larger digital health companies?are more than halved?so far this year?compared to the same period last year. 3. The digital health market is strengthening as evidenced by the return of public exits and a focus on early-stage deals. After nearly two years without any initial public offerings (IPOs), several companies—including Nuvo, Tempus AI, and Waystar—emerged on the New York Stock Exchange or Nasdaq. Further, 84% of deals were comprised of seed, Series A, or Series B funding. The amalgamation of these trends?signals?a strong pipeline of innovation and new entrants in the digital health space. ? As private equity firms increase their acquisitions in digital health startups, how will their strategies compare to those of larger digital health companies? How will the rise of innovative tools like AI continue to reshape the investment landscape? #ro3llc #Healthcare #DigitalHealth #PrivateEquity #MergersandAcquisitions #Startups