Rajiv Singh, CEO of Accolade, details Accolade's revenue structure during an a16z panel on healthcare business models.
Insight
Singh: Healthcare platforms should replace carrier support numbers to drive engagement
“The second thing we really have to do is in that early stage of deploying that customer, we have to be great at understanding their data, creating those personalized recommendations, and then finding a way via both consumer-based marketing techniques as well a…”
Assertion Supported
Singh: High-deductible health plans only temporarily reduce healthcare costs
“The unfortunate reality is, the consumers never, didn't really get smarter as a part of joining the healthcare system as an economic buyer, and costs would go down for a year, and then start to slowly but surely drift back up.”
Assertion Not checkable as stated
Singh: Accolade cuts employer healthcare spending by 5% to 7% initially
“We're really attacking the entire volume of healthcare spend, and so, you know, we've seen cost savings in the first year, five to seven percent.”
Assertion Not checkable as stated
Singh: Accolade saved 2.9% in first year on 100,000-member exchange population
“We just got our first set of data on a 100,000 member population. That's 2.9% savings in the first year.”
Assertion Supported
Singh: Companies with as few as 200 employees are adopting self-insurance
“And, you know, the number of thousand employees used to be the boundary for employers to move to self-insured. That number's going lower and lower every year. The number of employers who are saying, hey, in this fully insured model, my carrier's not necessaril…”
Disclosure
Singh: Accolade moved all customer contracts from shared savings to fixed fees
“We've, in fact, moved all of our agreements To take a percentage of our revenues on a fixed basis, but we do want to be aligned with the customer's needs, and so we do that by saying, we'll measure ourselves on engagement.”