ReviveHealth's Weekly Hash: 02.28.21

"If you ain't first, you're last" ... or so Ricky Bobby would have us believe. Not if the rising second opinion industry has anything to say about it. 

Continue reading to learn about Cleveland Clinic and Amwell's second opinion joint venture and stick around for insights on rising cost scrutiny and reputation risks. 

What’s on our minds this week:

INDUSTRY TRENDS

Predicted to reach $7B by 2024, the "second opinion" healthcare sub-industry is growing fast. The latest move this week is The Clinic, a joint venture between Cleveland Clinic and Amwell. Leveraging Amwell's telehealth platform, The Clinic gives health plans, employers, and consumers access to Cleveland Clinic's specialists for in-depth case reviews and second opinions on existing diagnoses. The results thus far? Nearly 30% of case reviews result in a diagnosis change, with 72% of treatment plans modified.

We're torn on this idea around the virtual ReviveHealth water cooler. On the one hand, The Clinic shows the potential for digital health channels to deliver clinical excellence at scale. It's a story of access, of consumer confidence. On the other hand, this model could potentially create confusion, care continuum disruption, and diminished trust. As health plans increasingly push members towards these offerings, we see yet another competitive and reputation threat emerging for AMCs and other leading provider systems.

— Shannon Hooper, Chief Growth Officer

INDUSTRY TRENDS

We've been talking for months about the impact COVID-19 has had on the finances of health systems, providers, and health tech companies. Now, the M&A train seems to be picking up steam.

Just this week, we saw HCA pick up 80% of Brookdale's home health and hospice businesses, Lifespan and Care New England announced plans with Brown University to merge, and Cigna bought MDLIVE. We anticipate more consolidation deals will come throughout the coming year. 

With a new administration in DC taking a closer look at cost and quality criticism of health M&A and statehouses across the country considering legislation to give state attorney generals more oversight to approve deals, those announcing deals need to clearly articulate the value proposition they will bring to staff and patients. Their ability to successfully close the deal will depend on it.

— Ryan Colaianni, Senior Vice President, Issues & Crisis Communications

HEALTH SYSTEMS

Health plans' Q4 profitability suggests patients may start to seek care again, squeezing payor profits to low-single-digits across the board. This trend comes on the heels of health plans like UnitedHealthcare reporting nearly double the earnings seen in Q2 2020 as they did in Q2 2019. 

If consumers resume routine care, both public health and providers benefit. However, low health plan margins may also give hospital cost critics an extra foothold in their cost scrutiny — as hospitals must now reveal pricing structures (effective January 1, 2021).

Hospitals must develop scenario plans to address pricing as scrutiny ramps up. We’ve written and talked about the “value crisis” for a couple of years now, and we think hospitals can elevate the public discourse from a cost conversation to a value conversation. 

— Luke Farkas, Director, Business Strategy & Growth

Who should distribute COVID-19 vaccines?

With limited vaccine supply and whisperings of retail clinics taking center stage in vaccine distribution, health systems must consider their role in healthcare's future state – whatever that may be. Listen to our latest No Normal Show podcast episode to hear Ryan Colaianni, Senior Vice President of Issues & Crisis Communications, ReviveHealth, discuss: 

• Findings from our latest consumer survey report, Who is the COVID-19 vaccine for?
• Health systems' future role in vaccine distribution
• Ways to coexist with retail while staying competitive
• What to prepare for if you decide to step back from vaccine distribution

Listen to the podcast →

Next Week: Intermountain Healthcare Joins Us on The No Normal Show

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