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The Medicare-focused health insurer Clover Health has launched a new venture to sell its technology platform.
The company, which serves seniors enrolled in Medicare Advantage, announced Wednesday that it will start offering its clinical decision support tool known as Clover Assistant to other insurers and providers through a new subsidiary called Counterpart Health.
It’s a strategy that another young insurer, Oscar Health, has tried with mixed results. But if successful, it could help Clover diversify its revenue beyond Medicare Advantage to less regulated areas. In recent years, Clover has reined in growth plans to focus on breaking even. It served about 80,000 members across five states as of March 31, fewer than in past years.
Andrew ToyEarlier this month during the company’s first-quarter earnings call, Clover CEO Andrew Toy hinted at the new venture when he said that Clover had invested heavily in its technology and other capabilities, and that it “makes sense” to offer it to third parties.
Clover Assistant will be sold externally under the name Counterpart Assistant. The tool analyzes data from different sources to provide insights doctors can use to better care for their patients, and Clover claims its tech helps clinicians identify diseases earlier and reduces emergency department visits and hospitalizations to lower total costs.
The company will offer the tool under a software-as-a-service and shared savings model, according to the announcement. Clover said it already has some customers, including Duke Health’s accountable care organization Duke Connected Care, and a few healthcare provider groups in New Jersey, Clover’s biggest market, and Georgia.
Clover, which went public in a SPAC deal backed by billionaire investor Chamath Palihapitiya in 2021, has never turned a profit. It reported a net loss of $213.4 million on revenue of $2 billion in 2023. Its accumulated deficit reached $2.2 billion.
Earlier this month, Clover said it expects to reach full-year profitability on an adjusted EBITDA basis in 2024.