IORA Health Case Study Discussion

Iora Health

“Why is there so little innovation in this sector when there are such big problems to solve?” -Christopher McKown Co-founder Iora Health

Disruptive Innovation in Health Care Where do they typically start? What prompted the Iora innovation to happen? Why did Dr. Fernandopulle leave Renaissance Health? “Every day I lose a little piece of my soul” “Changing healthcare is going to require de novo providers”

Principal-Agent in Healthcare How does Iora resolve the Shopping Problem?

Unique Principles “What are trying to do is all about conferring agency on patients” “get the payment system out of the way and focus on just delivering the right sort of health care.” Per member per month fee plus a fixe practice mgmt fee “The docs here don’t have a lot of ego” IT system that is a “joy to use” Culture-driven service organization Hug factor

Business Principles Specifically chose to operate as a for-profit VC backed company “ Get an extra 5% of HC spending in primary care and reduce 20% of costs on the back end” Health coaches Economic agency is not an effective lever Mental health should never have been divorced from physical health Built IT system in house

Questions to consider What types of sponsors make the most sense? Self-employed employers Unions Government employees Health plans? Humana Medicare Advantage Are they saving money?

Questions to consider Is this sustainable? Can it expand beyond primary care? What are the major threats to Iora? Implications for Health Systems?

“We are well designed to solve major problems in healthcare” -Neil Patel Associate Medical Director Iora Health