The holy grail of basic services can be in a subscription model for $ 9 per month
Editor’s note: Allon Bloch will be joining us on July 14th as we continue our Future of Mental and Behavioral Health 2021 virtual series. Use “inventhealth” for a free ticket! At this year’s event were high-ranking VCs and C-level executives from leading mental and behavioral companies such as BetterHelp, K Health, BetterUp, Ginger, Amwell, Doctor on Demand, Neuroflow, Octave Health, Just Answer, Kaiser Permanente, Bessemer Ventures and more.
K Health co-founder and CEO Allon Bloch joins Bambi Francisco Roizen on the VatorNews podcast series. Prior to founding K Health in 2016, Bloch founded Wix, a website building platform for SMBs, and is a publicly traded company valued at $ 16 billion under the ticker symbol WIX, and Vroom, an online car dealer, is a publicly traded company $ 5 billion worth of the ticker symbol VRM. K Health has raised $ 273 million in funding. Most recently, last January, K Health raised $ 132 million from GGV Capital and Valor Equity Partners, with the participation of pension fund Kaiser Permanente, LTS Investments, 14W, Max Ventures, Pico Partners, Marcy Venture Partners, Primary Venture Partners and BoxGroup.
– Allon’s focus has always been on using data to solve major societal problems, with an emphasis on calcified industries.
– K Health is a free app to have chatbot conversations about your health; People can also use it to talk to a licensed clinician for $ 19 (as long as a doctor is available – so not just 15 minutes!) / 7 to a doctor. You can also get refills for medication. Most people use the app for acute illnesses. The app compares your symptoms against millions of medical records to point out what is wrong.
– K Health currently has 5 million users (the company does not disclose free versus paying members). K Health aggregates data from its users, but initially started with an Israel-based HMO with two million members.
– K Health is currently an adjunct to insurance because the insurance can handle significant medical expenses while K Health can be used for out-of-pocket expenses. According to a 2020 study, the average annual deductible for employer-based coverage for a family is around $ 4,000, but outside of an employer the average deductible for family insurance is $ 8,439 for each exchange plan.
– K Health is primarily aimed directly at the consumer but has a partnership with Anthem.
– The challenge with the current archaic health system: 1) The majority of payment structures are still chargeable, which creates incentives for unnecessary tests, procedures and treatments. 2) Many people have PCP in theory, but not in reality because doctors are not available on call. 3) There are additional care stories like urgent care that are expensive. 4) Many conditions or concerns can be resolved remotely compared to a clinic, let alone the emergency room.
– Allon’s approach to reinventing primary care has been to focus on the biggest problem in health care. For him it was the 24/7 problem. “We have to think about the inefficiency and I’ll start with 24/7 and the ability to track.”
— K Health has hundreds of doctors on a salary. Doctors are paid like traditional doctors, but see fewer patients. Doctors can stay with a patient for as long as they want with no incentive to see 20 a day, as is the norm in most practices. K Health also works with doctors who want to work 25-30 hours. In addition, doctors don’t have to spend time on non-medical things like administration.
Listen to the podcast to learn more about how K Health ensures quality and the results Anthem seeks, as well as K Health’s pricing model.
This podcast is sponsored by BetterHelp and VatorNews listeners get a 10% discount for the first month at BetterHelp.com/Vator. This podcast is also provided by Octave, your mental health and emotional wellbeing partner. Learn more at FindOctave.com. Also thanks to NeuroFlow, which works with hundreds of health organizations to provide world-class technology and services for the effective integration of behavioral health. Learn more at neuroflow.com)