Virgin Pulse and HealthComp to merge and create comprehensive employer health platform
The merger will create a technology and data-powered health platform-as-a-service organisation to take on some of the industry’s biggest challenges. The combined entity will aim to improve health outcomes and lower costs for members and employers by empowering better information and decision making. It will deploy innovative and flexible health plan designs that drive improve member health outcomes, engagement and awareness across the most important aspects of a person’s healthcare journey, all powered by advanced and technology and data platform that leverages AI.
“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. Our two companies have a shared mission to improve individual outcomes by engaging users early and often, and making health and wellbeing more accessible, affordable, and personal for all,” said Chris Michalak, Virgin Pulse CEO. “Together, we are addressing a problem that has plagued the industry for years – a misaligned, complex benefit structure that results in unmet needs and escalating costs. We are eliminating waste, friction, and preventable risks by putting members and their needs at the centre of the ecosystem.”
HealthComp CEO Chad Harris added: “Self-insured employers pay for almost half of the nation’s healthcare expenditures and now require more innovative and affordable solutions. With concierge-level service, rich analytics, and expert medical cost management, HealthComp ensures that employers can make informed benefits decisions that align with the needs of their employees and businesses. Powered by Virgin Pulse’s daily wellbeing engagement and data-driven personalisation, this transaction creates an end-to-end platform that will radically lower costs and improve member outcomes.”
Chris Michalak will serve as CEO of the combined entity, where he will continue building upon the Homebase for Health vision and expanding the value proposition. The combined entity will serve more than 20 million members and address costs for more than 1,000 self-insured employers. HealthComp’s powerful analytics will also benefit Virgin Pulse’s health plan and health system clients by providing closed-loop data on health outcomes and the benefit of investing in member experience and wellbeing programmes.
The merger is expected to close in Q4 2023, subject to regulatory approvals and satisfaction of all closing conditions under the definitive agreement. Financial details of the transaction have not been disclosed.
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