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Oak Avenue Well being expands digital specialty care with $130M deal for RubiconMD


Worth-based main care community Oak Avenue Well being picked up digital specialty care supplier RubiconMD for $130 million.

The deal permits Oak Avenue Well being to combine digital specialty care into its present care mannequin, which can considerably streamline the referral course of and higher handle prices whereas additionally enhancing the affected person expertise and offering complete care far past conventional main care, firm executives stated in a press launch.

The deal additionally consists of as much as $60 million, topic to achievement of outlined efficiency milestones, to be paid in money or money and inventory mixture, in accordance with Oak Avenue Well being.

RubiconMD’s specialist community of over 230 specialists covers all main specialties, together with cardiology, nephrology and pulmonology. The corporate, launched in 2013, primarily focuses on web-based eConsults, serving greater than 5,000 main care suppliers.

Gil Addo, co-founder and chief government officer of RubiconMD stated the 2 firms share “related cultures and values, in addition to a dedication to delivering high-quality affected person care and reducing prices.”

RELATED: Oak Avenue Well being tasks robust development in 2021 regardless of $64M loss in Q1

“This represents an necessary step ahead for Oak Avenue Well being’s platform and will probably be a differentiator within the expertise we offer our sufferers,” stated Geoff Worth, co-founder and chief working officer at Oak Avenue Well being, throughout a name with traders Thursday.

Oak Avenue Well being is targeted on rebuilding healthcare by driving extra assets into the first care setting, in accordance with Mike Pykosz, CEO of Oak Avenue Well being.

“Specialty care on this nation is damaged,” stated Worth in the course of the convention name, noting that specialty care is pricey for payers and sufferers, has a excessive stage of waste from duplicative assessments and unneeded procedures and is extraordinarily uncoordinated, leading to sufferers having a number of care plans.

“The typical affected person expertise to entry specialty care is poor; it is irritating, complicated and sluggish to navigate well being plan networks and soar by means of hoops for authorizations and billing,” Worth stated.

It is estimated that 40% of specialty visits are fully avoidable whereas, on the identical time, 1 in 4 sufferers who want care have poor entry to specialists, he stated.

To enhance sufferers’ entry to specialty care, Oak Avenue Well being has constructed high-value, native specialty care networks, executives stated. The acquisition of RubiconMD will combine and virtualize specialty care into Oak Avenue Well being’s care mannequin, which can allow all of its facilities to share a curated community of specialists nationally, Worth stated.

RELATED: JPM21: Oak Avenue Well being investing in tech, information science because it eyes additional growth of main care clinics

“This strategy has the potential to meaningfully enhance affected person care and outcomes, affected person expertise and comfort and Oak Avenue monetary efficiency,” Worth stated, noting that the mixing of digital specialty care builds on a profitable mannequin to carry psychiatry companies to all Oak Avenue Well being facilities.

“RubiconMD is a company that’s centered on bringing specialist experience to the first care setting utilizing expertise. They’ll supercharge our digital specialist community,” he stated.

RubiconMD supplies scientific insights from specialists on particular affected person instances, enabling main care suppliers to immediately handle and coordinate extra of a affected person’s care wants.

The mixing of RubiconMD’s platform will enhance the corporate’s patient-level economics and can result in vital price financial savings, in accordance with executives.

Specialty care companies are a considerable a part of the corporate’s general third-party medical spend, about 15% of whole prices. Oak Avenue anticipates a ten% discount in specialist spend by reducing duplicated or unneeded care, and expects to understand these price financial savings beginning within the second half of 2022, Worth stated.

The acquisition additionally might result in different medical expense financial savings, Worth stated, as hospitalization prices ought to lower as specialty care is built-in and coordinated earlier in a affected person’s illness development.

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