|
Fabric’s 4th Acquisition | Focused Models Outperform
September 19, 2024
|
|
|
|
|
Together with
|
|
|
|
“There are a lot of people that are a little gun-shy about doubling down on their convictions. For us, virtual care is not going away.”
|
|
Fabric CEO Aniq Rahman
|
|
|
|
Fabric is back at it again with another acquisition, this time scooping up the virtual care business of physician practice juggernaut TeamHealth.
Here’s the updated timeline leading up to Fabric’s fourth acquisition in 18 months:
- March 2023 – Florence launches with $20M to tackle ER capacity constraints
- May 2023 – Florence nabs Zipnosis from Bright Health
- Jan 2024 – Fabric rebranding and GYANT acquisition
- Feb 2024 – Fabric closes $20M Series A led by General Catalyst
- June 2024 – Fabric acquires MeMD from Walmart
- Sept 2024 – Fabric picks up TeamHealth VirtualCare
That’s an unusually hot start for a startup still looking forward to its second birthday, but Fabric CEO Aniq Rahman walked Business Insider through the method behind the madness.
- After bringing a consumer mobile experience to the ER, Fabric acquired Zipnosis to add asynchronous telehealth capabilities and accelerate its roadmap to new sites of care.
- That apparently worked like a charm, so Fabric picked up GYANT’s conversational AI to serve as a patient entry point to its other offerings, then followed that up by grabbing MeMD and its 30k corporate/payor partners.
The latest move with TeamHealth VirtualCare officially gives Fabric access to over 100M lives in managed care contracts with payers, as well as a 50-state network of clinicians.
- TeamHealth also broadened Fabric’s medical group with multi-specialty experience, including cardiology, sports medicine, OB/GYN, and family medicine.
- On top of that, the health systems working with TeamHealth VirtualCare will transition to Fabric, providing plenty of surface area to start cross-promoting other services.
Put it all together, and Fabric’s strategy of acquiring both capabilities and customers has led to it having a rare amount of each for such a young company – not to mention an eight-figure ARR (reported during the GYANT acquisition) that’s probably well on its way to adding another digit.
The Takeaway
Fabric is leaning in on virtual care at a time when massive players are bowing out completely, creating an ecosystem of solutions that pushes the telehealth economics in a positive direction that’s hard to achieve with narrower strategies. That M&A playbook isn’t a secret, and given where we’re at in the investment cycle, Fabric probably has quite a few companies knocking on its door looking to be the next solution in its portfolio.
|
|
|
Curate, Create, & Share at the Point of Care
It’s hard to find a more unique vantage point on AI than Playback Health co-founder Dr. Langer, whose role as the Chair of Neurosurgery at Lenox Hill allows him to actually use the platform he helped create. Head over to Dr. Langer’s latest blog to see how Playback is helping him spend more time caring for patients and enabling providers to “Curate, Create, & Share” at the point of care.
|
|
K Health’s First-of-its-Kind AI Knowledge Agent
K Health’s AI Knowledge Agent is a first-of-its-kind GenAI system purpose-built for the clinical setting, with a familiar feel hiding some major innovation under the hood. Discover how the AI Knowledge Agent is bringing new levels of personalization to answering patient medical questions and changing what it means to have a “digital front door” in the process.
|
|
Bridging Care Gaps for Underserved Populations
Is your health system, rural health clinic, or federally qualified health center struggling to reach patients with obstacles to receiving in-person care? This Clear Arch Health whitepaper explores how combining RPM with VBC can help facilitate proactive interventions, address social determinants of health, and get the most out of new CMS reimbursement pathways.
|
|
- Focused Model Outperformance: Humana’s latest study on 462k Medicare Advantage beneficiaries showed that senior-focused primary care organizations engaged in population-based contracts deliver better outcomes than broader models. Analysis of 2021 data showed that patients of senior-focused orgs received 17% more primary care visits than others in the same ZIP code, with the largest differences among Black and dual-eligibles. Focused orgs also produced better results managing diabetes and hypertension, as well as fewer ED visits and hospitalizations.
- Journal Publishers in Hot Seat: A class action antitrust lawsuit was filed against the six largest academic journal publishers – Elsevier, Wolters Kluwer, Taylor & Francis Group, John Wiley & Sons, Springer, and Sage – for colluding to profit off of scientific research. The litigation reads like the culmination of frustrations that have been coming to a boil for years, alleging the publishers consolidated ownership of 53% of all medical journals while leaving peer-reviewers out to dry and fleecing universities for “the maximum the market will bear for access to that scientific knowledge.”
- UIHC Scales Nabla to All Clinicians: University of Iowa Health Care will be one of the first academic medical centers to scale ambient AI across its entire clinical workforce after a successful pilot with Nabla led to a 26% reduction in burnout. Nabla will help eliminate documentation burden and enhance well-being for 3,000+ clinicians, while also collaborating with UIHC to develop specific features for nursing workflows to ensure those benefits extend to the entire clinical staff.
- Big Moves From MSK Leaders: Two of the fastest horses in the digital MSK race announced major updates to compete for new business. Hinge rolled out the Enso 3, adding revamped hardware and new personalization features to the FDA-cleared electrical nerve stimulation product line that’s already supported over 100k members. Not to be outshone, Sword debuted its new Outcome Pricing model that ties the cost of its programs to their effectiveness in improving the health of users – music to employers’ ears.
- More Patients Seek AI Health Advice: Patients are turning to AI chatbots for medical advice more often than many experts anticipated, sparking concerns about the accuracy of information they’re receiving. A KFF survey found that one in six adults are now using AI to find health advice at least once a month, rising to a quarter of adults under age 30. AI’s ease of use and seemingly authoritative answers are prompting higher usage despite the fact that 56% of AI users aren’t confident that the health information they’re getting is accurate.
- Elevance Cracks Down on Off-Label Scripts: Bloomberg got the scoop that Elevance is taking an unusually hard line on doctors that improperly prescribed Ozempic to treat obesity by falsifying patient medical records to receive coverage. The national payor is reportedly clawing back over $1 million from about 150 providers, and in one case is demanding $125k from a single doctor for falsifying 125 off-label Ozempic treatments.
- Inova Plays NICE With Hyro: Inova Health is integrating Hyro’s communications capabilities with NICE’s CXone customer experience platform to improve patient and staff satisfaction through new AI features. Hyro’s AI voice and chat assistants will be embedded within Inova’s newly upgraded NICE platform to automate routine tasks and provide more self-service options. Hyro will also be showcasing its tech at next week’s Digital Front Door Day virtual summit headlined by former One Medical CEO Amir Dan Rubin.
- Seniors Worry About Healthcare: A national survey of 5,000 adults (half over the age of 65) revealed widespread dissatisfaction with the U.S. healthcare system, and 82% of seniors felt we’re not prepared “for the growing and changing needs of our country’s aging population.” While 52% of older adults see at least three different physicians each year, only half of them reported that their PCP coordinates with the others. Seniors also worry more about Alzheimer’s and dementia than any other diseases, yet just 40% said their regular provider routinely evaluates their cognitive functioning.
- Nirvana Series A: Nirvana closed $24.2M of Series A funding to bring patients and providers more transparency prior to their visits. By verifying patient coverage using a tool embedded on provider websites, then using AI to interpret which parts of their policy apply to the visit, Nirvana can deliver detailed cost estimates for each appointment at the time of booking.
- Cardiac Scale Measures Up: Results from the SCALE-HF trial show that Bodyport’s Cardiac Scale could significantly improve the effectiveness of home heart failure monitoring compared to traditional weight-based reporting, while drastically reducing unnecessary alerts. Among 329 participants with HF and over 238 participant-years of follow-up, the Cardiac Scale’s congestion index predicted a far higher rate of HF events versus the standard weight rule (70% vs. 35%), with nearly half the alerts per participant-year (2.58 vs. 4.18).
|
|
RPM Designed to Streamline Your Workflow
Discover Withings’ suite of connected devices and user friendly platform where you can benefit from dedicated tech support, ensuring continuous monitoring and minimizing any disruptions in patient care.
|
|
Navigate the Future of Healthcare AI at Elevate
Join Medallion at Elevate on October 30th and experience the top minds in healthcare coming together to share bold ideas and connect in an informal, down-to-business setting. This was hands-down the best virtual conference we attended last year, and the lineup for 2024 is packed with execs from orgs like from VillageMD, Multiplan, and Community Health Systems. Take advantage of Elevate by registering here.
|
|
Join the Nabla Team!
Nabla is expanding its team, and it’s on the lookout for an exceptional VP of Sales to bring aboard. This role will be instrumental in shaping the go-to-market efforts of a company dedicated to bringing joy back to the practice of medicine. Learn more and apply here.
|
|
|
|
|
