Virgin Pulse, a health customer relationship management and engagement platform and HealthComp, a benefits and analytics platform, announced Thursday the completion of their $3 billion merger.
WHY IT MATTERS
The unified company aims to reduce healthcare costs and improve outcomes by delivering a comprehensive health platform-as-a-service that they say improves member decision-making and behavior.
According to the announcement, the combined technologies, which include artificial intelligence-driven analytics, will:
Result in an average savings of up to $3,000 per employee per year through flexible health plan designs.
Drive members to return to the platform an average of six times daily with a sustained engagement rate of up to 50% through concierge-level experiences.
Lower inpatient costs by 48% for members and deliver a 3:1 value-on-investment for clients through whole health advocacy, support and navigation.
THE LARGER TREND
Virgin’s Homebase for Health platform for employers integrates plan management, plan design, payments, preventative care, health navigation and digital therapeutics while HealthComp offers concierge-level services, analytics and cost management.
Earlier this year, Virgin Pulse added Headspace, which expanded outside the U.S., into its AI-enabled Homebase for Health platform to provide members access to the digital mental health application. It also upgraded the platform with workforce wellbeing tools and advanced social determinants of health data.
In September, the companies announced they would merge to create an extensive employer-focused health platform that would eliminate waste, friction and preventable risks.
“This combination with HealthComp creates a new category in the health space that will change the way employers address the two-fold challenge of reducing costs and improving member outcomes,” said Chris Michalak, who has served as Virgin Pulse’s director and CEO, and is now the CEO of the combined entity, when the companies announced the deal.
ON THE RECORD
“We are stronger together as one purpose-driven organization with the technology, talent, and opportunity to radically change how people engage with and navigate the healthcare ecosystem,” said Chris Michalak, CEO of Virgin Pulse and HealthComp. “This combination will deliver on the ultimate vision of the Homebase for Health platform, and I’m looking forward to making a bigger impact on the lives of millions of people.”
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