|
Omada IPO, AI for VBC, and Who Watches the WeightWatchers?
May 12, 2025
|
|
|
|
|
Together with
|
|
|
|
“If you can safely and effectively solve someone’s care needs without dragging them into your waiting room, why on earth wouldn’t you?”
|
|
Omada Health CEO Sean Duffy
|
|
|
|
The IPO winter might finally be over after chronic care startup Omada Health filed to go public just a few short weeks after Hinge broke the ice.
The digital health darling is best known for its virtual diabetes management programs, but has grown into a comprehensive offering for hypertension, MSK (courtesy of its 2020 Physera acquisition), and a GLP-1 Care Track that drives sustainable results through behavior change.
The S-1 vital signs are mostly encouraging:
- Omada generated $55M in Q1 revenue in Q1, up 57% YoY.
- Gross margin is strong and getting stronger at 60%.
- 2024 revenue climbed 38% to $170M.
- Profitability remains elusive with a $47M loss last year.
Omada has more than 2,000 customers, primarily employers and health plans, with 679k members enrolled in at least one of its programs.
- Members engage an average of 30 times per month, and over half are still active at the one-year mark.
A key part of Omada’s growth story is its partnership with Cigna, which made the GLP-1 Care Track a core component of Evernorth’s EncircleRx program for employers looking to manage the explosion of interest in the drugs.
- Most of Omada’s 2024 revenue came directly from Cigna (55%), a double-edged sword considering that investors don’t exactly love having that many eggs in one basket.
Looking ahead, Omada plans to keep producing more evidence that its behavior change interventions make a meaningful impact on long-term success with GLP-1s.
- The first wave of digital health IPOs – think Teladoc and Amwell – banked on convenience over outcomes and eventually got burned.
- Omada is setting out to prove that the second wave can truly move the needle on outcomes and costs, making them non-negotiables rather than nice-to-haves.
The Takeaway
There’s a lot riding on these IPOs. If Omada and Hinge can stick the landing, it could be the spark that reignites investor confidence in digital health. No pressure, we’re all rooting for you.
|
|
The First 30 Days: What to Expect With AI
Implementing AI documentation tools promises significant benefits, but how do you ensure a smooth transition? Playback Health has you covered with this comprehensive 30-day roadmap outlining what to expect, industry best practices, and its own proven implementation approach.
|
|
2025 State of Payer Enrollment & Credentialing
With increasing costs and shifting regulations, outdated processes won’t cut it. Medallion’s new report breaks down the biggest challenges, emerging trends, and how automation is transforming the landscape. Get the insights you need – read the full report today.
|
|
- Clarium Series A: Clarium landed $27M in Series A funding to fortify health system supply chains against everything from tariffs to hurricanes. The “supply chain resiliency platform” unifies real-time data from hospital ERPs, inventory systems, and supplier feeds to predict disruptions and suggest orders for avoiding downtime. Definitely a hot button topic right now, and Clarium already counts big names like KP, Stanford, and Sutter as partners.
- WeightWatchers Chapter 11: Diet and exercise have become a tough pitch in the age of GLP-1s, prompting WeightWatchers to file for Chapter 11 bankruptcy in an attempt to shed the $1.2B debt load it’s been carrying. The restructuring allows Weight Watchers to remain publicly traded as it builds out a better digital experience and leans in on telehealth to prescribe the same medications that have been eating away at its core business.
- AI Essential for VBC: New research from Phyx Primary Care found that AI “may be essential for thriving” in value-based care. That’s based on an analysis of 120 physicians across 19 practices, who leveraged Navina’s AI Assistant to synthesize fragmented patient data into proactive insights at the point of care. Physicians that used the AI for 30+ days saw an impressive 40% reduction in clinical review time for complex patients and a 32% decrease in burnout, which contributed to improved VBC performance for the practices (+0.153 increase in RAF, +1.9 point improvement in Star quality ratings).
- First At-Home Cervical Cancer Test: Teal Health secured FDA approval for the first at-home cervical cancer test, which gives patients an alternative to the dreaded in-office pap smear. The Teal Wand screening device allows patients to collect their own sample, submit it for analysis, and access results through an online portal. They can then set up a virtual visit with a Teal provider to review next steps or coordinate a referral if needed.
- Americans Want Reform: Jarrard’s State of Healthcare 2025 report showed that 76% of U.S. adults believe hospitals are focused primarily on revenue, a sharp increase over 23% in 2021. Chief complaints toward the overall industry were that it isn’t affordable (45%), isn’t equitable (20%), and that it’s too hard to access care (13%). Most Americans now feel that the healthcare system needs significant reform or a complete redesign (63%), versus 57% in January.
- Babyscripts + Withings: Babyscripts is teaming up with Withings Health Solutions to tackle the leading cause of maternal mortality in the U.S. – hypertensive disorders of pregnancy, including preeclampsia. Members of Babyscripts’ virtual maternity care program will now have access to Withings BPM Pro 2, the first FDA-cleared cellular blood pressure monitor that captures patient-reported outcomes the moment a high reading occurs. The extra context allows providers to detect early warning signs of HDP, which can develop silently but escalate quickly.
- Persivia Raises $107M: Healthcare data analytics firm Persivia just bagged a $107M growth investment as it prepares to scale its modular CareSpace platform to more providers. CareSpace goes beyond surfacing data by leveraging AI to generate and prioritize insights, allowing care teams to respond to urgent issues and manage complex populations more effectively. The round arrives on the heels of Persivia securing a patent for said AI.
- Patients Are Stressing Costs: An Included Health survey of 2k U.S. adults showed that financial anxiety is at an all-time high as Americans struggle to access treatment. Financial stress was reported by the vast majority of Gen Z (71%), Millennials (68%), and Gen X (69%), compared to 55% of Baby Boomers. The cost of care itself was the most common barrier to mental well-being, with a third of all respondents reporting that healthcare affordability has negatively impacted their mental health in the past year, and 29% citing it as the main obstacle to seeking professional help.
- FDA Turns to AI for Product Review: The FDA has found a novel solution to the shortage of reviewers for medical product applications: put generative AI to work. The agency this week said it completed a successful pilot test of AI-assisted scientific reviews and plans an “aggressive” rollout of AI across all its centers using a secure, unified platform. GenAI will be used to open bandwidth for scientific reviewers to spend less time on “tedious, repetitive tasks” that slow down the review process.
- Health System Margins Tighten: Strata’s March Hospital Benchmark data showed that operating margins for U.S. health systems narrowed slightly to 0.9% in March, after holding steady at 1% in both January and February. Non-labor expenses continued to rise faster than other categories, due in part to double-digit increases in drug and supply expenses year-over-year. Patient demand was up nationwide as outpatient visits outpaced inpatient admissions, with gross outpatient revenues spiking 10% YoY.
|
|
Tia Turns to Nabla for Patient-Centered Care
Tia’s mission is to drive the highest standard of care for women, which is why it partnered with Nabla to strengthen the connection between its patients and providers. See why Tia’s clinicians trust Nabla’s ambient AI assistant to keep care centered on patients by streamlining medical documentation.
|
|
Simplify RPM & Maximize Patient Engagement
Engaging patients at critical moments is essential for success. With Withings Health Nudges feature, care teams can send tailored messages to the screen of the blood pressure monitor— offering personalized support when they need it most.
|
|
- Create Efficient Primary Care Access With K Health’s Clinical AI: Keeping up with patient access feels like a losing battle? Hartford HealthCare, Cedars-Sinai, and Hackensack Meridian Health found a new approach. K Health partners with health systems to scale high-quality 24/7 primary care access without sacrificing quality. Learn how K Health’s peer-reviewed clinical AI and Virtualist model are transforming how leading systems deliver care.
- Humans of Healthcare – AltaMed’s Multilingual Community: AltaMed, the nation’s largest Federally Qualified Healthcare Center (FQHC), is partnering with Abridge to serve its majority-multilingual population. Everyone deserves access to cutting-edge healthcare technology, no matter what language they speak. Learn more here.
- How Navina Is Transforming Healthcare Data: As healthcare becomes increasingly complex, escalating data challenges make it difficult for physicians to stay fully informed on their patients’ health status. Navina is changing the way physicians interact with patient data by transforming fragmented patient records into succinct summaries with AI-powered diagnosis suggestions at the point of care. Download the white paper to see how practices are leveraging Navina to enhance VBC performance and improve the clinician experience.
|
|
|
|
|
