The Healthcare Landscape: Insights on Elevance Health and Strive Health's Innovative Partnerships

The Healthcare Landscape: Insights on Elevance Health and Strive Health's Innovative Partnerships

Introduction:

The healthcare industry is constantly evolving, with various organizations seeking innovative ways to deliver high-quality care while reducing costs. In this article, we will explore two notable players in the healthcare field - Elevance Health and Strive Health - and delve into their recent partnerships aimed at improving Medicare beneficiaries' care.

Elevance Health's Medicare Segment:

Elevance Health (ELV) is a carrier with a significant presence in the Medicare market. Interestingly, while ELV's commercial and Medicaid memberships dominate their overall membership, their Medicare segment has experienced steady growth. From 1,946,000 to 2,059,000 members, ELV's Medicare Advantage membership grew by 5.8% year over year. However, their Medicare Supplement membership declined slightly by 1.7%, from 942,000 to 926,000 members.

Financial Performance:

ELV's financial performance in Q2 2023 showcased positive results. Overall operating revenue increased by 12.7%, from $38.5 billion to $43.4 billion year over year. This growth indicates a favorable market response to ELV's offerings. Additionally, ELV's loss ratio improved slightly, decreasing from 87.1% to 86.4% year over year. This decrease signifies a more efficient management of benefit expenses in relation to premium revenue.

Expenses and Operating Profit:

ELV's expenses as a percentage of revenue saw an increase from 19.0% to 20.9% year over year. These expenses encompass both operating expenses and the cost of products sold. Despite this increase, ELV's overall operating profit grew by 12%, from $2.35 billion to $2.63 billion. This positive growth in operating profit suggests effective cost management strategies implemented by the organization.

Strive Health's Partnership with Southern California Kidney Consultants:

In another corner of the healthcare landscape, Strive Health, a Denver-based organization, has formed an innovative partnership with Southern California Kidney Consultants (SCKC). SCKC is the largest nephrology group in Orange County, California. Together, these organizations aim to provide higher-quality and cost-effective kidney care to Medicare beneficiaries in Southern California.

The Partnership's Goals:

Under this partnership, Strive Health and SCKC share financial benefits, management responsibilities, and governance of risk contracts with Medicare, Medicare Advantage plans, and Independent Physician Associations (IPAs). The primary objective is to enhance patient outcomes while reducing costs in the kidney care domain. By combining their expertise and resources, Strive Health and SCKC strive to make a significant impact on the lives of Medicare beneficiaries in Southern California.

Actionable Advice:

• 1. Collaboration is Key: The partnerships formed by Elevance Health and Strive Health highlight the power of collaboration in the healthcare industry. By joining forces with other organizations, healthcare providers can pool their resources and knowledge to drive positive change.

• 2. Focus on Cost Management: ELV's success in improving its loss ratio and operating profit underscores the importance of effective cost management. Healthcare organizations should continuously evaluate their expenses and explore strategies to optimize their financial performance.

• 3. Prioritize Patient Outcomes: Strive Health and SCKC's partnership prioritizes improving patient outcomes in kidney care. Healthcare providers should always keep patient well-being at the forefront and seek innovative approaches to enhance the quality of care delivered.

Conclusion:

The healthcare landscape is constantly evolving, with organizations like Elevance Health and Strive Health spearheading innovative partnerships to improve care delivery for Medicare beneficiaries. By understanding the financial performance of these organizations and the goals of their collaborations, we can glean insights on effective strategies for success in the healthcare industry. By prioritizing collaboration, cost management, and patient outcomes, healthcare providers can navigate this ever-changing landscape and make a lasting impact on the lives of patients.