Health insurance companies are Headspace’s fastest-growing customer base, Katie DiPerna Cook, senior vice president of partnerships, said during an interview at the HLTH conference Tuesday.
Over the past two years, the digital behavioral health company said it has grown to cover 60 million enrollees and tripled its revenue generated from insurers over the past two years. Headspace in August announced it partnered with Intermountain Healthcare’s value-based care subsidiary Castell. The company wants to grow its value-based contracts with carriers, DiPerna Cook said.
“We’re not a point solution, we’re not a vendor; you should think of us as another provider in the network,” she said. “That’s how we want insurers to view us, and we have to get paid in a way that fits into a health plan’s payment structure.”
The majority of insurers contract with Headspace to offer behavioral health services to their commercial enrollees, DiPerna Cook said. Headspace has been growing the number of full-time behavioral health providers it employs in response to growing demand from insurers, she said. She declined to disclose how many providers were employed at the company.
“If we’re talking to a plan, and they want to expand access and bring more capacity to their region, we want to make sure we’re not potentially overlapping with some therapists who are contracted with them and contracted with us,” DiPerna Cook said. “As a value-based provider in mental health, we need to have clinical oversight and quality assurance.”
Headspace also aims to sign and leverage similar contracts with cities, such as Hartford, Connecticut, which last month announced it will pay an undisclosed sum to offer Headspace to all residents, students, and city and public school employees.
4:25 p.m. CT: Cigna buys digital health provider Bright.md
Cigna Group will pay an undisclosed sum for digital health company Bright.md, the companies announced in a news release Tuesday. Cigna’s Evernorth Health Services unit will integrate Bright.md’s asynchronous digital services into MDLive, a telehealth platform that covers 60 million commercial, Medicaid and Medicare enrollees. MDLive supports about 2 million virtual urgent care, behavioral health, tele-dermatology and primary care visits annually, MDLive Chief Medical Officer Dr. Eric Weil said during an interview at the HLTH conference.
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3 p.m. CT: Sutter Health to launch innovation center
Sacramento, California-based Sutter Health is opening an innovation center, CEO Warner Thomas announced at HLTH on Tuesday. The center will be based in San Francisco and is expected to open in early 2024, but the health system is still finalizing a specific location.
Through its work at the center, Sutter said it will partner with venture firms and early-stage digital health startups. The 23-hospital system will work with these companies on prototyping, testing and deploying products in a real-world healthcare environment.
Sutter will also use the center to advance its collaborations with some of its current digital health partners, including artificial intelligence company Ferrum Health. The system’s innovation team will work at the new center and help train clinicians in new innovations.
It’s all part of Sutter’s strategy to transform healthcare and make it more consumer friendly, Thomas said.
“It’s going to take partnerships and different approaches if we are really going to successfully solve the healthcare challenges of the country,” he said.
1:50 p.m CT: Amazon’s Neil Lindsay discusses past healthcare failures, future strategy
With a noticeably bigger presence at this year’s HLTH conference compared with last year’s show, Amazon has a clear mission in healthcare, said Vice President of Health Services Neil Lindsay. The longtime Amazon veteran was tapped in December 2021 to oversee all of its health efforts. Since then, the company has acquired primary care provider One Medical, launched Amazon Clinic and established a generic medication discount program through its Amazon Pharmacy business.
Read the interview.