The idea is to design healthcare like other industries where the price is known in advance
There’s a lot wrong with the U.S. healthcare system, including soaring prices and poor performance compared to the rest of the world, but perhaps the worst is a lack of transparency: when a patient goes to the doctor, they’re nI always really know what the price of medical services will be until you get the bill. Then the sticker shock sets in.
No other market works like this. Under no circumstances do we buy anything without knowing what it costs, except in healthcare, which is why Angie O’Connell, Executive Vice President, Chief Strategy and Innovation Officer at Transparent Health Marketplace (THM), has a strong drive for price transparency. , told me.
The idea behind THM is to bring this transparency to the healthcare system by operating a market that connects payers and providers of health services for employee compensation.
“Market forces are always at work, but market forces are not always seen. When Adam Smith first formulated his economic concept of the ‘invisible hand of the market’ in 1759, he must have been thinking about our healthcare system in the 21st century,” she said.
“The real problem is not that there are no market forces at work, the real problem is that there is no market. A marketplace provides real-time pricing information, connections, availability, planning, and payments, similar to what the travel industry does. Competition modulates prices, improves quality and increases availability. Our name says it all: Transparent healthcare market. We think Adam Smith would be proud. “
On Tuesday, the company announced an oversubscribed Series C preferred equity financing round of $ 30 million led by ARTIS Ventures. New investors, including Phase 2 partners, as well as existing institutional and individual investors will also take part in the round. This last round brings THM‘The total was increased to $ 57.4 million.
The THM marketplace, founded in 2016, enables providers to connect with payers on an open marketplace. Providers can tell insurers what they want to pay for services, and insurers can contract out for that amount.
“Today in the United States we are at a fundamental crossroads in terms of healthcare. There is tremendous social and political pressure to move the entire system to Medicare for all payer government models,” said O’Connell.
“We think this is the wrong direction. The right direction and our solution is to fundamentally change market forces and enable them to function. Our solution is no less bold than ultimately destroying large parts of the healthcare industry.” market “.”
The company solves three problems in the current healthcare system, the first is this It’s backward-wired, so patients don’t know the price of a service until they receive an invoice. To solve this, the company has has developed an intelligent pricing algorithm that enables it to precisely rate and personalize services before they are provided to every individual patient need.
The second limitation is thatIn order to buy prices and services, there has to be a marketplace platform that connects buyers and sellers. THM built its platform to be 100% compatible to operate within what O’Connell called the “giant multi-trillion healthcare information exchange matrix”. Finally there is the fact that All functions have to be connected, planned, evaluated and paid for in real time. This is not how the health system works today. For this reason, THM has designed its solution so that it can book trips, buy products or plan restaurant reservations.
“We have solved all three problems and believe that we have removed the fundamental barriers to system transformation, experience enhancement, process acceleration and new benefits that we cannot yet imagine,” she said.
Thanks to its platform, THM is able to shorten weeks of appointment planning to days in seconds, support outdated call centers, help providers fill out calendars, reduce the costs of caring for payers and get patients back to work faster and faster . It can also see in real time Providers competing for patients, changing prices in real time, and bookings taking place.
The company currently operates in California and works with physical therapy and imaging providers. However, there are plans to expand into new types of providers, regional markets and new industries.
The new funding will also be used to expand the company’s management team Strengthening network growth and expanding jurisdiction. A considerable part is spent on further software development in order to accelerate the roadmap and infrastructure of THM. Along with the funding, it was also announced that Stuart Peterson, Founder and Managing General Partner at ARTIS Ventures, has joined the Board of Directors of THM.
“Stuart is passionate about healthcare transformation and has successfully invested in companies around the world for many years. He brings great business knowledge and industry knowledge, a real understanding of the business model we are developing and its potential for the future Shaping THM is pleased that Stuart brings his experienced track record to the THM Board of Directors and looks forward to his continued participation, “said O’Connell.
THM’s ultimate goal is to scale a market in which medical services can be offered for sale and to put THM tools in the hands of a wide variety of payers, providers, and consumers of health products and services.
“We intend to expand the market to a wider range of additional medical services and industries. Success will be an easily accessible, upscaled, multi-jurisdiction platform that delivers efficiency and ease of use to consumers, providers and payers with measurable results.”