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In the Media

03.17.13 DIY Health Reform

Proof of How Easy it is to Slay the Healthcare Cost Beast

As I laid out in Healthcare’s Trillion Dollar Disruption, there is a massive opportunity to profit from the shift from volume to value based healthcare. Forward-looking organizations are doing that all over the country. WellPoint acquired CareMore for $800 million due their proven model. An example their proactive healthcare model that contrasts with the mainstream reactive model are patients with Congestive Heart Failure (CHF). It’s well understood that a sudden weight gain is an early warning indicator of a high risk health complication that typically costs $30,000 to address.

Since CareMore’s model aligns financial incentives with health outcomes, they give their CHF patients wireless scales that send the patient’s weight back to clinicians to a system that monitors CHF patients weight. Reduced blood flow causes fluid build up and weight to increase. Reduced blood flow leads to many negative consequences if not immediately addressed. CareMore shared an example of an elderly woman who had a sudden weight gain she hadn’t noticed. After stepping on the scale in the morning and grabbing her morning coffee, she received a call from CareMore. The nurse asked when the woman could come in. Since she was unable to drive and her daughter wasn’t available, they sent a car to pick her up and then treated her. Total cost: $600. Total savings: $29,400. For that patient, she avoided an unpleasant complication. Priceless.

CLICK HERE to read the article on Forbes