Issue 10, Jan. 2023

Leverage Health:

The Year in Review, The Year Ahead

One year ago in January 2022, most predictions for healthcare focused on continued, pandemic-driven uncertainty and pressure across the entire industry ecosystem.  Sitting here a year later, it feels like many of those prognosticators undershot the mark.  From worker shortages, supply chain disasters, systemic and inflationary cost growth, and a general reduction in overall care access (particularly for underserved communities) driven by both digital and brick and mortar shortcomings, 2022 will likely be remembered as a turning point for the industry.  In many ways these challenges have made navigating the healthcare ecosystem even more difficult, and even industry experts have struggled with their own healthcare.

Throughout the pandemic, and more specifically in 2022, Leverage Health’s mission of Moving Healthcare Forward has never been more important.  Our executive relationships have always been a key factor in helping us understand where things are going in healthcare, or where they need to go.  In turn, this has driven the makeup of our portfolio, which even well before the start of the Covid-era, focused on solutions with provable, risk-based ROI or that allowed Buyers to clearly understand and measure performance and outcomes.  By utilizing our proprietary PATHways process (Prioritize, Assess, Tune and then Hyper-focus our Portfolio companies to work very closely with their health payer and health system customers) Leverage Health has been successful in bringing thoughtful and effective solutions to the market while supporting our Portfolio Companies to thrive as a result.

At Leverage Health we have curated a portfolio of companies that can successfully demonstrate outcomes and Return on Investment (ROI) with third party validation. The value of measurable, meaningful, and, for many of our portfolio companies, guaranteed financial outcomes is a critical benefit for the health plans, health systems, and employers these companies serve as they enter 2023.

We know that all stakeholders within the healthcare industry continue to struggle with a proliferation of point solutions and that the focus on both systemic and unit costs will only increase from what we saw in 2022. This “vendor-fatigue” and the constant overlap in scope and disjointed data sources do not allow for real organizational sponsorship and synergy, driving low adoption and engagement. For our portfolio this reality has led a focus on an extremely tight alignment with our companies’ buyers, and the simple, black and white delivery of value. We close 2022 with a group of solutions-providers that can quickly deliver value with exceptionally low needs (and costs) for structural integration by customers.

Healthcare is still most effective when it is highly personalized and, whenever possible, local, and the patient is the center of the entire system. Treating the patient over their symptoms is the best way to achieve the Triple Aim and lower the costs of care for all. Longitudinal care through the patient journey proves to be the most effective way to reduce costs and improve patient care and their experience.

We are starting to see some difficult headwinds approaching in 2023. We expect a continuation of high COVID testing and spend in the first half of 2023 due to high seasonal influenza and RSV rates in what is being labeled the ‘Tripledemic.’ Medicare Advantage plans are also dealing with lower STAR Ratings due to the removal of pandemic guardrails and the updates to the methodology for 2023. While the headlines may tell a grim story about the past year, we at Leverage Health have seen innovation continue to help move healthcare forward.

In 2023, we expect cost of care to again be among the most critical focal points for U.S. Healthcare. The health marketplace is seeing more focus on true integration and usable solutions, or on end-to-end ecosystems that can offset downstream spending while improving patient experience and outcomes.

As we think about our portfolio of companies, we are hyper-focused on solutions that integrate into the clinical workflow, support and expand a trusted payer/provider/patient relationship, and favor system level transformations over symptom level point solutions.

As always, we are grateful for your support and friendship, and welcome the opportunity to offer our guidance as you consider your organizational needs for 2023 and beyond.