A part of the HCDT&I series, Credit Suisse https://www.credit-suisse.com hosted Zane Burke, CEO and Scott Doolittle, CFO from Quantum Health https://quantum-health for a fireside conversation.
By way of background, Quantum Health.com is a consumer healthcare navigation company providing employees of self-insured employers a more effective and satisfying healthcare experience. The company is one of the leading competitors of Accolade (ACCD, Outperform).
From a pure employee navigation/engagement perspective, Quantum sees the TAM as >$10 bin with <5% penetration which represents a significant opportunity for expansion. According to management, demand is primarily driven by the need to take complexity out of healthcare, further propelled by several macro-level catalysts.
Management emphasized that the space did not need the COVID-19 event to pull forward adoption like digital health, since demand already existed prior to the pandemic. Overall, Quantum sees significant opportunities from both market penetration and other market adjacencies, where the company can raise visibility with other stakeholders outside of their core base of employers. By building a clicks-and-mortar presence, Quantum is confident that it can further close gaps of care for providers.
Quantum Health typically signs standard 3-year agreements under a PMPM model with clients. The company usually offers some sort of performance guarantee, whether that is related to ROI for the employer or engagement/satisfaction rates for employees. About 10-15% of fees across their entire book of business are at risk, generally based around savings and outcomes.
Quantum Health measures engagement on both an organizational and member level. On an organizational level, Quantum generally asks new prospects prior to implementing the company’s solutions about their expectations for budget or trends on an actuarial-validated basis. Quantum then compares that baseline to actual performance under the Quantum model in the first year to look at the delta between costs, net of fees, and savings.
On a member level, Quantum has seen a real engagement with 80% of households, which the company notes is significantly higher than the <4% engagement seen in some rebranded navigation companies.
Moreover, Quantum saw that 88% of their employers’ members have an active relationship with their PCP, which translates into Y/Y improvements and as for preventive visit utilization, the company maintains NPS in the mid-70s.
To ask questions, or provide feedback, or news, email Jailendra Singh at Jailendra.singh@credit-suisse.com or call 212-325-8121.