As part of their CIO Series, Credit Suisse https://www.credit-suisse.com hosted Rajeev Ronanki-SVP & Chief Digital Officer at Anthem (ANTM) https://antheminc.com at a virtual meeting with a small group of investors to discuss Anthem’s digital health strategy.
Given its scale and size, Anthem has access to massive datasets, including claims data for +70 min lives, EMR clinical data for + 15 min lives, and lab data for +18 min lives. Notably, the data doubles every 70-80 days.
Using existing data as a foundation, Anthem is combining AI and machine learning algorithms to create further insights for their core business and adjacent growth opportunities so the health insurer can deliver better experiences for their members and other stakeholders.
Currently, over 65% of Anthem’s interactions with stakeholders are digital, which compares to less than 1% just five years ago. In the next three years, however, Anthem expects 90% of their interactions to be digital.
Anthem’s consumer engagement platform, Sydney which launched about 2.5 years ago, offers consumers a personalized healthcare experience resulting in improved engagement at lower total costs. Mr. Ronanki describes Sydney as a one stop shop for various consumer services as well as everything related to care management. Sydney has over 10 min registered users, which is roughly half of the eligible Anthem population. Anthem’s goal is to get close to 100% of eligible Anthem members on Sydney by 2023.
Sydney is also available to non-Anthem members in what is called Sydney Care which offers consumers a convenient and inexpensive way to access quality care from a smart phone available 24/7/365.
Through their Joint Venture with K Health and Blackstone, Anthem has also launched an offering called Hydrogen Health which is going to focus on virtual primary care. Mr. Ronanki believes that virtual primary care has the potential to reboot primary care and give physician practices the tools needed.
As for digital health consolidation, Mr. Ronanki expects there to be further developments across digital health as companies decide on whether to buy, build, or partner. Anthem, however, has taken the view that the care delivery infrastructure is more about connecting all of the dots to make the experience as seamless as possible.
Mr. Ronanki does not believe that Anthem needs to own the care delivery infrastructure. Rather, the company’s approach is more about virtualizing the care delivery infrastructure and connecting to the demand since Anthem has a global view of supply and demand, and can continually optimize various factors (e.g., price, availability, convenience).
In regard to the potential impact on Anthem’s digital strategy from non-traditional healthcare players (e.g., Apple, Google, Amazon), Mr. Ronanki believes that some of the emerging entrants to healthcare will be more complementary.
Overall, for the most part, Anthem is positioning to work together with disruptive technologies and third party vendors to improve the customer experience and financial/clinical outcomes when the values are aligned.
With respect to Amazon, while there haven’t been any discussions, Mr. Ronanki notes that given Anthem’s open platform, an Amazon Care option available through Anthem is “theoretically possible.”
For more information, ask questions, or to provide feedback, or want to provide news, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.