Clover Earnings and Symplr Acquisition

Quick insight on Clover (CLOV) and Symplr

Recent earnings and acquisition in the healthcare technology space for the week of May 17, 2021

Clover Health

Clover Health is a San Francisco-based Medicare Advantage insurer. The company’s in-home care model utilizes technology, including data analytics and machine learning, to identify its highest-risk members. It then finds solutions to lower their risk of adverse health events.

• Their propriety platform called Clover Assistant (CA), is designed to improve outcomes for its members. It effectively stores and processes patient records and provides recommendations to enhance the quality of its services and control costs

• 21% growth on a year-over-year basis.

• However, it incurred a sizeable net loss for the quarter at $48.42 million. Looking ahead, it expects its membership numbers to fall between 68,000 and 70,000

• Clover posted a Q1 net loss of $48.4 million, much worse than its net loss of $28.2 million in the prior-year period.

Clover’s strategy is focused on entering direct contracts with doctors treating patients in the traditional Medicare fee-for-service program and managing the care of those populations. The expectation is that private entities who enter into these risk-sharing contracts will be incentivized to deliver care at a lower cost. The latest earnings report stated that Clover has contracted with 1,800 providers across eight states since the program launched in April, adding 65,000 members.

These 65,000 additional members are much lower than the 200,000 members that Clover promised potential investors were “already” contracted before the company went public via SPAC in January.

But scaling in direct contracting is proving more difficult than expected. CLOV is at an almost all-time low when it closed on Friday, May 21, 2021

GRC industry company movement

Symplr, a global leader in enterprise healthcare operations including governance, risk management, and compliance ("GRC") SaaS solutions, backed by Clearlake Capital Group, L.P. (together with its affiliates, "Clearlake") and SkyKnight Capital (together with its affiliates, "SkyKnight") has signed a definitive agreement to acquire HealthcareSource HR Inc. ("HealthcareSource" or the "Company") from Francisco Partners.

HealthcareSource is the leading software provider of talent management solutions and services specifically for the healthcare industry.

There is an industry trend in patient safety solutions and GRC where the lines are blurring. The solution providers are looking to offer a consolidated solution for ‘everything” such as credentialing, policy management, vendor management, patient experience, workforce management, and many others. Decision-makers may have a different perspective when evaluating these solutions, but the market is moving fast towards a consolidated model.