Clarify Health Acquires Embedded Healthcare, Behavior Change Platform

What You Should Know:

– Clarify Health, leading cloud analytics and value-based payments platform company, just announced its acquisition of Embedded Healthcare  – a behavior change platform company created by notable healthcare leaders such as Dr. Ezekiel Emanuel to scale value-based care for health plans.

 – The announcement marks the company’s second acquisition in 6 months and represents Clarify Health’s deep commitment to further build out its technology and cement its leadership in value-based care.

Bringing behavioral economics to the physician office

Today, payers and providers are investing millions of dollars in new tools, systems and infrastructure; however, it’s still an uphill battle to drive adoption and change clinical practice.  As a result, the healthcare system is inefficient with large savings opportunities. Spun out of University of Pennsylvania’s Healthcare Transformation Institute, Embedded Healthcare uses targeted data and incentives to guide behaviors, Embedded’s platform is proven to deliver value for all stakeholders — especially patients. In a recent study of Embedded’s effect on physician behaviors, the platform was proven to change 10% of physicians’ decisions in under nine months. Those physicians selected higher-value sites of care for elective procedures, reducing the cost of care by tens of thousands of dollars per physician.

Acquisition Impact

As Clarify continues to drive healthcare toward value-based payment innovation, there is a need for more transparent analytics, more precision in understanding patients’ needs, and an increased ability to appropriately reward providers for the quality and outcomes they deliver.  The combination of Embedded’s cutting-edge behavioral science platform with Clarify’s unified Value Solution will increase provider engagement and incentivize behavioral changes, critical for improving payer-provider collaboration and scaling the adoption of value-based payment models to improve healthcare outcomes and create savings.

“Clarify and Embedded Healthcare complements each other in a way that will help the industry achieve higher quality healthcare. Clarify’s insights identify opportunities for value across the delivery system, and Embedded has created the incentive framework and behavioral nudges that drive change into the daily decisions of providers, regardless of what payment models they’re in today. Combined, we bring to market unique capabilities and analytics that will accelerate high-value clinical behavior, reframe a positive payer-provider relationship, and displace ineffective models,” said Keith Florance, President of Embedded Healthcare, who will be joining the Clarify team as SVP of Payer Solutions.

As part of the acquisition, the entire Embedded Healthcare team is joining Clarify Health. Ezekiel Emanuel, Amol Navathe, and Simeon Schwartz will remain closely involved as strategic advisors. Financial details of the acquisition were not disclosed.