Clover Health will sell its artificial intelligence-powered software to third-party providers and Medicare Advantage insurers through a new subsidiary named Counterpart Health.
The insurer said in a Wednesday news release that the physician enablement software, known internally as Clover Assistant, will help value-based care providers and Medicare Advantage insurers reduce patients' healthcare costs and identify chronic conditions such as diabetes earlier.
Related: Why Clover Health pays patients to visit providers who use its software
The software is available for sale under the brand name Counterpart Assistant.
The company lists on its Counterpart Health website five external provider groups as existing customers, including the Durham, North Carolina-based clinically integrated network Duke Connected Care and Sunnyvale, California-based technology company HealthTap.
The company has previously credited Clover Assistant for allowing it to effectively manage healthcare costs of its members while operating a wide-network preferred provider organization. Clover Health reported 79,500 Medicare Advantage members on its May 7 first-quarter earnings call.
Clover Health is focused on closing deals with customers this year over generating revenue, CEO Andrew Toy said about the product Wednesday at the Leerink Partners Healthcare Crossroads Conference.
Clover Health will ink shared savings relationships with Counterpart Assistant customers, who will pay a recurring platform fee to use the tool and a tech-enabled services fee. It is launching upside-risk arrangements with customers to start and may consider expanding into full-risk arrangements in which it accepts uncertainty related to financial losses and gains, Toy said.
The company told investors during the J.P. Morgan Healthcare Conference in January that it aimed to sell its Clover Assistant tool to other payers and providers once it had achieved profitability. Toy said Wednesday the company is working toward achieving adjusted earnings before interest, taxes, depreciation, and amortization, or EBITDA, profitability this year.
Clover Health cut its first-quarter net loss by 73.6% compared with the year-ago period to $19.2 million and grew revenue by 7.7% to $346.9 million. The Medicare Advantage insurer spent last year reining in its medical expenses, cutting staff and outsourcing its insurance operations. The company also exited the Accountable Care Organization Realizing Equity Access and Community Health model this year.
Lauren Berryman contributed reporting.
