Accolade (ACCD) https://www.accolade.com, held their annual customer event Evolve21, where the company announced the launch of two new solutions and a rebranding of existing products. Credit Suisse https://www.credit.suisse.com, offers key takeaways on this action.
ACCD has unveiled two new solutions including Accolade Care and Accolade One. ACCD has also refreshed existing solutions, including Accolade Expert MD (previously 2ndMD) and Accolade Advocacy.
While Accolade Advocacy comprises the existing suite of full benefits navigation, the solution also incorporates Accolade Care. Accolade comprises the existing suite of full benefits navigation, the solution also incorporates Accolade Care, Accolade Expert MD, and several add-ons (member services, disease/case management, and provider services and utilization management). ACCD’s refreshed solution set is expected to have a material impact on the business in CY22/FY23.
Additionally, ACCD’s whole suite of solutions (Accolade One in particular) seems to be set up for success in a post-COVID environment where care moves to a hybrid model with an emphasis on outcomes, cost savings, and convenience. ACCD is certainly not alone in this endeavor to become a comprehensive platform of care and navigation, but the company is certainly close to, if not leading the pack.
ACCD unveiled Accolade One—representing a notable expansion into value-based care. While value-based models have largely been concentrated in Medicare populations, ACCD is targeting the 110 min people covered in the employer market with this new solution.
Accolade One combines primary/specialist care, urgent care, mental health, expert opinions, and chronic care management on top of a data-driven approach to healthcare navigation. Accolade One represents a distinct product relative to what existing customers have and will require an upsell, but ACCD has already seen interest from customers.
ACCD has held back on further financial details of Accolade One but alluded to providing more information on the October 7th earnings call. However, ACCD did note the financial implications of managing risk associated with Accolade One does not change their LT EBITDA margin targets of 15-2%.
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