With it being a fairly quiet news day, we wanted to profile a name you may not be familiar with, but is worth a look: Evolent Health (EVH). It has been quietly making new highs and has been in a steady uptrend for some time.
Evolent Health is an IT healthcare consulting/technology firm. It has developed a platform (called Identifi) which enables healthcare providers to migrate from a fee-for-service (FFS) reimbursement payment model to value-based payment model. The move to value-based payments is accelerating, driven by pricing pressure in traditional FFS health care and a market environment that is incentivizing value-based care models.
The market is growing as it's estimated that approximately 10% of health care payments were paid through value-based care programs in 2014 and this could grow to approximately 50% by 2020.
Evolent provides an end-to-end platform for providers to transition their business model to succeed in value-based payment models. The transformation of the provider business model will require the ability to aggregate and understand disparate clinical and financial data, standardize and integrate technology into care processes, manage population health etc. Evolent's Identifi platform helps clients with all of this.
Evolent made some M&A news earlier this week, Evolent announced it will acquire New Century Health's business for up to $217 mln. New Century Health partners with specialist providers and health plans to provide them with the clinical decision and population health management tools to ensure that cancer and cardiology patients receive the highest quality, most affordable care. Using its proprietary technology platform, New Century Health brings together clinical capabilities, pharmacy management and physician engagement to assist its customers in managing the large and complex specialties of cancer and cardiac care.
From a general sense, Evolent says it continues to see considerable interest from provider organizations looking to move substantially into value-based care as well as existing risk-bearing organizations focused on improving performance. Evolent also continues to see considerable wins and momentum in the Medicaid market. Establishing a major presence in key markets such as Miami-Dade, Palm Beach, Fort Myers, Pensacola and Tallahassee creates a strong, long-term growth opportunity for Evolent in Florida and beyond. Evolent is also excited about its recent partnership with Torrance Health IPA and Torrance Memorial Integrated Physicians in California.
In sum, Evolent Health is a way to get exposure to a big trend in healthcare: Helping healthcare providers migrate from a fee-for-service (FFS) reimbursement payment model to value-based payment model. And the move to value-based payments is accelerating, driven by pricing pressure in traditional FFS health care and a market environment that is incentivizing value-based care models.