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New reports Peterson Institute for Health Technologies It suggests that virtual physical therapy services could reduce healthcare spending for payers who invest in them. With billions of dollars being pumped into these companies, the valuation could boost business for those that have been cautious about purchasing these services for their residents.
The analysis looked at three types of solutions: app-based exercise therapy solutions, physical therapist-led solutions, and solutions that extend RTM. Physical therapist-led solutions in particular demonstrated comparable results to in-person treatment at a lower cost, justifying their increased adoption. For those with private insurance, PHTI suggests these solutions could save between $737 and $1,306 per user in the first year. Companies in this category include: Sword Health, Hinge Health, About Omada Health, Vori, and RecoveryOne.
There are a few details worth noting: PHTI based its conclusions on an economic analysis of back pain treatments. It also made some assumptions about population uptake and whether easier access might encourage people to seek treatment before it becomes too expensive to treat their problem. The report also noted that all of the solutions studies it looked at were at moderate or high risk of bias.
Less than two months ago, PHTI released a scathing report arguing that digital diabetes management tools like Teladoc, Omada, and DarioHealth aren’t worth the money, and the report was criticized for placing too much emphasis on A1c results in assessing clinical effectiveness and economic impact.
Executive Director of PHTI Caroline Pearson He said the positive rating is due in part to the fact that digital physical therapy solutions can replace existing care, whereas other types of digital health tools add costs and would need to demonstrate savings elsewhere to justify their case.
So what did companies think this time? Predictably, several companies, including Sword and RecoveryOne, issued statements expressing their delight at PHTI’s support for their solutions.
But Volli offered some insight into how the model could be improved to yield even more savings.
“The impact on worker productivity and absenteeism, savings on prescription drugs and savings on emergency room visits do not appear to be factored into the model,” the CEO said. Ryan Grant “Overall, this report is a good first step to show that virtual-first solutions can have a significant impact in terms of cost savings. Depending on the variables considered in the analysis, the savings could be much greater than reported,” they wrote in an email.
Carolyn Jusickis the chief medical officer of Omadasaid it believed the report was oversimplified, saying: “PHTI inappropriately places companies like Omada, which only provides care led by physiotherapists, in the same category as companies that appear to provide care led by health coaches.”
Omada’s diabetes solutions were criticized in the previous PHTI report, and the company also noted what appear to be differences in the two companies’ methodologies.
American Physical Therapy AssociationOn the other hand, released a mostly positive statement, emphasizing the need for virtual solutions to augment existing models and address issues of affordability and access. Like Omada, it also emphasized the importance of medical care provided by physical therapists.
Have something to say about the latest PHTI report or related topics? My inbox is open: [email protected].
Axena wins increased funding and other rounds
Axena Health The company announced it has raised an additional $9.4 million to further commercialize the Leva Pelvic Health System, a smartphone-connected biofeedback device that teaches users pelvic floor strengthening exercises to treat urinary and fecal incontinence, bringing its Series A funding to $30.8 million.
Axena was founded last year. Renoviais the company that developed the REVA device but ran out of money. With new evidence of positive clinical outcomes, new funding, and positive coverage decisions by several insurance companies, Cigna, Highmark Blue Cross Blue Shield, Blue Shield of North DakotaThe company’s salespeople have been knocking on obstetrician-gynecologists’ doors for the last year. Jim O’Connor The company told STAT that business is going well. The company saw sales of more than $500,000 in the first quarter of 2024, with even bigger numbers expected for the remainder of the year. The company hopes to use the new funding to expand into new geographies. The company is also investing in developing treatments that can be used in low- and middle-income countries.
In other funding news:
- Virtual Musculoskeletal Care Company Sword Health The company raised $130 million in primary and secondary sales, valuing it at $3 billion. (Read more on TechCrunch)
- Digital Stethoscope Company Eco Healthwhich recently received FDA clearance for its algorithm to detect low ejection fraction, a sign of heart failure, raised $41 million in a Series D round (more details at Axios).
“Little Tech” wants to speak out about AI
As leaders in Washington consider what regulations to impose on artificial intelligence, startups are doing all they can to voice their concerns, reports STAT’s Mohana Ravindranath.
Like a big company Microsoft Companies are using their lobbying power and money to steer regulations in their best interests, but there are concerns that startups’ voices will be ignored and that the rules will be too onerous for smaller companies without large compliance teams.
Venture capital firms Y Combinator and Andreessen HorowitzFunds that invest in health tech companies have attended Congress and lobbied behind the scenes. Consumer Technology Association Met with the bipartisan Digital Health Caucus and provided educational briefings.
Read more from Mohana about startup engagement in Washington DC.
What we’re reading
- What the OpenAI whistleblower isn’t saying?, the platform
- Blood in the Machine: Understanding the Real Threat Generative AI Possesses to Our Jobs
- AI mimics dead and dying people, raising new questions about grief, Associated Press
