Today I’m thrilled to announce that I’ve joined OODA Health, an early-stage healthcare technology company, to lead their marketing team. After four great years at InsideView, I’m excited for a new challenge in a new domain. OODA’s mission is to transform healthcare administration by enabling real-time payments between providers, payers, and patients that lowers costs and improves the patient experience.
Healthcare costs dominate the headlines and the debate stage for good reason. Healthcare waste and overhead continues to climb — to the tune of $760 billion per year (source: JAMA). Much of this staggering waste is from administrative costs such as claims processing, billing, and collections.
Just a few of the eye-opening stats that scream for the need for change:
Patients are confused and frustrated by surprise medical bills. We’ve all received what we thought were medical bills that state in clear print at the top, “this is not a bill.” We likely stack them in a pile until we get our final bills so we can actually pay them. How many bills do you get in a year? Are you just slightly annoyed, or are you really upset? The answer probably depends on how complicated your medical care is.
Behind each of those statements, technically called an EOB (Explanation of Benefits), occurs a lot of back and forth communication between your medical providers and insurance plan to settle the claim. I spoke with a few midsize providers where the number of billing administrators on staff is the same as the number of physicians. In the industry, it’s well known that payers (insurance plans) and providers (physicians and hospitals) do not get along, and decades of escalation and mistrust have driven them back and forth complexity and increased costs. A strange fact: fax machines are still alive and well in healthcare, as they are the primary conduit for sharing patient medical records to justify services. Not the most secure way to share sensitive data!
Our vision is a healthcare system liberated from waste, focused on delivering affordable and high-quality care.
Typically, providers collect only 40%-70% of the balances that patients owe, largely due to patient confusion and system complexity. 79 million Americans are plagued by healthcare-related medical bills and debt. The administrative expense and bad debt from collections is a tax on everyone. It’s no wonder that healthcare costs in the US have increased to 18% of GDP, the highest in the world. As the son of a physician and nurse, I’ve always had an affinity for healthcare. But I was initially skeptical of the ability to change this situation. This is why some politicians have proposed a single-payer insurance system.
But there is real hope in the form of technology delivered by OODA Health that’s driving change and collaboration between payers and providers to improve the patient experience and lower costs. Check out this one-minute video from Blue Shield CA announcing their new patient billing experience powered by OODA Health.
OODA Health is actively partnering with many leading health plans and medical providers, including Anthem, Blue Cross Blue Shield of Arizona, Blue Shield of California, Blue Cross Blue Shield of Massachusetts, Dignity Health, a part of CommonSpirit Health, Hill Physicians Medical Group and others. We have a shared vision to change healthcare administration — and the way to do it. Yesterday, we hosted an advisory council in San Francisco with senior executives from these partners. It’s clear there’s strong alignment and commitment to make change happen.
We believe our healthcare system needs to put patients first. We also believe that collaboration and the right partnerships are the foundation for change to liberate the healthcare system from waste and deliver high-quality and affordable healthcare. Our founding team and investors have a track record of building successful healthcare technology companies.
Next week we’ll be at HLTH, a major industry conference for healthcare innovation. Our CEO and co-founder, Giovanni Colella, will moderate a panel discussion with the CEOs of Anthem and Blue Cross Blue Shield of Arizona about driving new member experiences through disruption and collaboration.
There’s a lot more to come. It’s an exciting time to be in healthcare, and we can address big issues. I look forward to being a part of the solution!
Learn about how you can partner with OODA Health to improve your members’ experience and your revenue management.