Recently, Credit Suisse https://www.credit-suisse.com, hosted 20 investors for an in-person Miami Bus Tour. As part of the tour, investors were invited to attend meetings with CareMax (including a tour to one of their Medical Centers), Convey Health Solutions, and Telehealth Executives at Baptist Health.
Given Credit Suisse’s “Restricted” status on Cano Health during the trip, Credit Suisse met 1×1 with the company (primarily during the visit to one of their medical centers).
Credit Suisse analysts offer industry level thoughts and discuss the key takeaways from the individual meetings in the note Healthcare Technology & Distribution : Miami Bus Tour Takeaways which includes several photos.
After the tour and visits to the medical centers in particular, analysts now have better appreciation for the “member engagement” model of value-based care providers. Both Cano and CareMax highlighted their proprietary technology platforms, which provide their providers a 360 degree view of their members along with actionable insights to empower better care decisions and drive member engagement.
By integrating superior member engagement and various wellness programs (including various social services}, these companies are building long term relations with members something traditional industry stakeholders have struggled to achieve.
Cano’s average MA member age is 74 (50% duals), while CareMax’s average MA member age is 72 (65% duals). When a member joins these value-based care providers, they make a proper health assessment along with documentation to arrive at the appropriate risk coding (could be higher or lower than previous risk scores).
However, given the superior member engagement and deep internal expertise in coding, documentation and quality assurance with these providers, risk scores on average tend to increase. Nevertheless, both Cano and CareMax argued that the MLR improvements demonstrated by these companies is driven more so by an improvement in cost PMPM and less by increase in risk scores.
CareMax is not seeing any tightness in the physician/nurse pipeline. The company sees a secular shift in doctors looking to practice with greater earnings certainty and less administrative burden.
While there is some wage inflation in hourly positions like medical assistants, transportation, and sales, etc., it is in the single digits range which management expects to subside as the extended unemployment benefits end. Cano Health noted that there is a tight labor market but most of the pressure is in more of the front desk type staff and less so in nurse practitioners/physicians.
Quick Tidbits from the Discussion with Baptist Telehealth Executives 1) Our presenters were not bullish on Zoom’s LT prospects in Telehealth highlighting Zoom’s key issues being their inability to capture data, integrate with workflow solutions, etc. 2) The presenters were excited about Amwell’s Converge Platform, 3) Baptist Telehealth visits percentage currently hovers in the 15-17% range, with some seasonality, and 4) Baptist prefers not to use the provider network offered by companies such as Amwell due to the cost and decentralization of the care that comes with that process.
For further information on the detailed takeaways from the note “Healthcare Technology & Distribution : Miami Bus Tour Takeaways” which also includes photos, ask questions, provide feedback or news, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.