The majority of Sharecare’s income comes from the sale of software and services to employers and health insurers
The fragmentation of the healthcare system is a big problem; Since different systems and providers cannot or do not want to work together, patients really suffer as a result. This leads to higher care costs and poorer outcomes because the patients with the most fragmentation in care have an average total cost of almost double that of the patients with the least fragmentation.
Solving this problem is Sharecare’s mission. a digital health platform that helps people manage all of their health data in one place.
Akshay Sharma, Executive Vice President of AI at Sharecare, recently explained in a podcast what the company is doing with VatorNews.
“Healthcare is extremely fragmented, which means your data can be in many different places and it’s very difficult to get it into a single point of view. And it’s not just the data that is isolated, care is also isolated. So what? Sharecare is taking this fragmented version of the healthcare ecosystem and trying to bring all of this together into a single point of view for the consumer by working with all relevant stakeholders, ”he said.
“By combining and aggregating this data from multiple sources, we can create a personalized health and wellbeing experience for the person. This is exactly what Sharecare is about: It is a digital health and wellness platform. “
The company offers what is known as the RealAge test, a health assessment tool that assesses a variety of behaviors and existing conditions of its members in order to provide them with a measure of their physical health.
“With RealAge as the basis for a person, our algorithms deliver data-Hazards Dialogue with the member, creation of content-Rich, personalized experience that provides them with relevant benefit programs, resources, and providers for those in need of medical care-Be Support. As members change their behavior, the platform refines its predictive analytics to provide increasingly compelling recommendations, ”the company wrote in its filing with the SEC.
Sharecare takes data from smartphones, eligibility and entitlements, social determinants of health, and medical records along with itself-reported Data to recommend personalized resources, tools, information and programs to each individual member.
Members also get access to lifestyle or disease management and coaching programs, including diabetes management and smoking cessation; Well-Be Solutions such as financial health and anxiety management; and maintenance navigation tools like find-a doctor, Prescription Savings, Clinical Decision Support, and Medical Records.
“Our product design philosophy uniquely positions us to drive meaningful engagement while collecting a critical mass of behavioral data to which we apply AI to more accurately personalize recommendations to predict and influence positive outcomes for each individual.”
How does Sharecare make money?
For the first nine months of 2020, the company had revenue of $ 240.4 million, 3% less than the same period in 2019. Revenue comes from software development, licensing, or the sale of software and services. is divided into three legs, depending on who is being sold to: company, provider or consumer.
The largest of the three streams is corporate revenue, which includes: Providing health management programs for employers and health insurers for their workforce or the insured population. This includes digital engagement, telephone coaching, incentives, biometrics and patient care.
This revenue is recorded per member per month or is based on member contribution, which is determined by multiplying the contractually negotiated member rate by the number of members who are eligible for services during the month.
Corporate customer revenue for the first three quarters of 2020 was $ 142.4 million, or 59% of total revenue. Company revenue decreased $ 9.1 million, or 6%, year over year.
The second largest leg is the revenue of the provider, which mainly consists of based on the amount of health document requests the company fulfills for the doctors on its platform. The revenue also comes from subscription fees for services that involve performance and risk-Attitude Tools, compliance with billing contracts, and improved patient care.
The company had sales of $ 59.5 million, or 25% of total sales, to vendors. This source of income increased 1.3% from 2019 to 2020.
After all, the company makes money off of consumer solutions, including his Suite of digital products and medical expertise that provides members with personalized information, programs and resources to improve their health and wellbeing-Be. This revenue comes primarily from advertising sponsorship and content delivery. Content delivery revenue is captured when the content is delivered to the customer, while advertising sponsorship revenue is captured when the contractual page views or impressions are delivered to the customer.
“By contributing to the vast amount of content and targeted programs on our platform, healthcare professionals, sponsors, and partners have the rare opportunity to incorporate their brands into our member experience and market themselves in a highly relevant and engaging environment, focused insights into the Patient acceptance, engagement and behavior change, “the company wrote.
Overall, consumer solutions generated $ 38.5 million, or 16% of total revenue, in the first nine months of 2020. Year-on-year it increased by 1.4%.
Sharecare was founded in 2010 by WebMD founders Jeff Arnold and Mehmet Oz in partnership with Harpo Productions, HSW International, Sony Pictures Television and Discovery Communications.
It had raised $ 425 million in funding before announcing plans to go public in February via a $ 3.9 billion SPAC deal.
(Image source: sharecare.com)