Oscar Health Inc., the digital health-insurance company well known to New Yorkers thanks to a subway advertising campaign, is going public in a deal that could value the company at up to $8 billion.
However, “we watched Oscar’s roadshow presentation as well as accompanying product demo, and were impressed by a fairly comprehensive set of tech-enabled user experiences and Oscar’s ongoing focus on rethinking every building block of [the] healthcare insurance supply chain,” he wrote in the note. Costs are so excessive that medical bills contribute to roughly 66% of all personal bankruptcies in the U.S.“It doesn’t have to be this way,” according to the Oscar prospectus. “According to a report published in the Journal of the American Medical Association in 2019, nearly 25% of healthcare spending in the U.S. is wasted, the result of a system plagued by misaligned incentives, lack of coordination, and administrative complexities.
The company believes it’s the third biggest for-profit health insurer in the 18 states it operates in. The company may also benefit from the shift to telehealth that has accelerated during the coronavirus pandemic and saw 62% more telehealth visits per 10,000 members in March 2020 compared with the year-earlier month. It may also benefit from an overall positive reception of other recent telehealth IPOs, including Teladoc Health Inc. TDOC, -13.74%, Lemonade LMND, -2.77% and American Well Corp.
The company intends to make “significant investments” to further market, develop and grow the business, with a focus on its technology platform and member-engagement engine. That effort will mean hiring more people. As a public company, it is also expecting higher legal, accounting and compliance costs than has been the case as long as it was private.
Source: News Formal (newsformal.com)
this is terrible news