Credit Suisse https://www.credit-suisse.com hosted Maayan Cohen, Founder & CEO of Hello Heart https://helloheart.com for a virtual meeting with a small group of investors.
By way of background, Hello Heart is a clinically-based smartphone solution for patients to track, understand, and improve their chronic conditions. Users are able to build healthy tracking habits and improve their health in real time with an easy to use smartphone application.
Hello Heart primarily sells to large, self-insured employers, but has recently expanded into more health plans and Medicare programs. Similar to other virtual chronic care management companies, Hello Heart offers their solution based on a Per-Participant-Per-Month (PPPM) revenue model. Contracts are typically three years in length with many becoming evergreen and with automatic renewals once expired.
Since 2017 when Hello Heart began selling to self-insured employers, the company has tripled their revenue each year as the business has continued to scale. Currently, Hello Heart has 32 Fortune 500 clients with 1.5 min covered lives from these 32 large employers. Ms. Cohen notes that a key differentiator of Hello Heart is that it truly uses a software-only solution without human coaches.
Hello Heart’s list price is $40 PPPM and offers discounted pricing based on the number of members enrolled. Hello Heart also offers Performance Guarantees (PG) based on clinical outcomes and ROI. Because of the purely digital platform, Hello Heart generates high gross margins of +70%. Further, Hello Heart was cash flow positive in 2020 and is very financially stable, but there are plans to spend more capital on growth moving forward.
Hello Heart maintains impressive enrollment rates in their addressable member populations with an average enrollment rate of ~45% (10x higher than other wellness solutions). Further, the platform generates sustained engagement over time with consumers by using artificial intelligence and user experience excellence.
The Hello Heart solution does three things: a) tracks and understands all health factors, b) Uses personalized AI-driven digital coaching that reduces blood pressures, and c) Helps catch risks in time.
After a rigorous clinical review, CVS selected Hello Heart to be included in their Point Solutions Management digital formulary. Ms. Cohen notes that having CVS Caremark as a channel partner unlocks the largest channel of digital therapeutics with 93 min covered lives. Hello Heart had their first CVS channel Clients launch on 1/1/2021.
Outside of the CVS Point Solutions Management program, Hello Heart also has several other channel partners most of which are wellness platforms. For instance, Hello Heart has commercial partnerships with Castflight, Welldoc, and Virgin Pulse. On the PBM side, CVS is Hello Heart’s preferred partner, which Ms. Cohen believes will be a strong long term partnership.
For more information, ask questions, or to provide feedback or news, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.