Becker's Hospital Review

30 CFO / FINANCE Oscar Health, Bright Health, Clover Health post losses exceeding half a billion dollars in 2021 By Alia Paavola D espite seeing revenue gains and sig- nificant membership growth, three of the largest health insurtech providers — companies that blend technological inno- vations with traditional insurance — posted losses exceeding $570 million in 2021. Oscar Health saw its membership grow 49 percent year over year and as a result saw its revenue grow to $1.8 billion in 2021, near- ly quadruple the $462.8 million recorded in 2020. Despite this growth, the health in- surtech posted a net loss of $571.4 million in 2021, compared to a net loss of $406.8 million recorded in 2020. Oscar attributed the net loss to a growth in its operating expenses, which grew from $865 million in 2020 to $2.4 billion in 2021. "We maintain a disciplined focus on efficiency and we believe we remain well-po- sitioned on our path to profitability for our insurance business in 2023," Oscar said in its financial report. Other major health insurtechs saw the same trend in 2021. For example, Bright Health Group saw its commercial membership grow significantly to 611,078 members in 2021, up from 145,459 members in 2020. But Bright Health posted a net loss of $1.2 billion on revenues of $4 billion in 2021. is compares to 2020, when the health in- surtech posted a net loss of $248.4 million on revenues of $1.2 billion. "Despite a challenging 2021, we have convic- tion in our strategy to continue driving align- ment and integration of care delivery and fi- nancing at the local level," Bright Health said in its earnings release. Clover Health also posted a net loss in 2021. e health insurtech posted a net loss of $587.8 million on $1.5 billion in revenue in 2021. is compares to 2020, when Clover Health posted a net loss of $136.4 million on revenues of $672.9 million. Clover Health more than doubled its membership in 2021 to 129,996, up from 58,056 members in 2020. "We are really excited about where Clover sits today and our prospects in the future," Clover Health CEO Vivek Garipalli said in a news re- lease. "is year, we are expecting significant growth in revenue and lives under manage- ment while at the same time we believe we are driving operating efficiencies and improved [medical cost ratios]." n Biden administration's plan to close, build VA hospitals: 6 takeaways By Marissa Plescia T he Biden administration released a plan March 14 to restructure the veterans' healthcare system, which includes the closure of hundreds of hospitals and clinics and the construction of several new facilities. Six takeaways: 1. The plan would result in 140 more multispecialty com- munity-based outpatient clinics, 48 more inpatient part- nerships, 27 more standalone community living centers, 14 more healthcare centers, 14 outpatient partnerships and 12 more standalone residential rehabilitation treat- ment programs, according to The Washington Post. There would be three fewer VA medical centers, 86 fewer com- munity-based outpatient clinics and 86 fewer other outpa- tient services clinics. 2. The plan removes aging hospitals with unused inpatient beds but replaces them with inpatient and outpatient clin- ics nearby, according to the Post. Additionally, while some facilities may lose services like emergency care or surger- ies, they may gain mental health or urgent care clinics. New nursing homes will also be built in areas where veterans are moving, primarily in the South and Southwest. 3. The proposal is driven by a main force: The Department of Veterans Affairs is spending billions of dollars to maintain old facilities, according to the Post. About 70 percent of the VA's healthcare facilities were built more than 50 years ago. The health system needs $61.6 billion for construction. 4. Additionally, veterans are moving to different loca- tions and are in need of different care, according to the Post. The veteran population is decreasing in the Northeast and parts of the Midwest but increasing in the South and Southwest. Many will need more outpatient and long-term support, like nursing home care. The VA predicts more veterans will live in rural areas and will have more chronic health conditions. Additionally, there is expected to be a growth in female veterans, who need gynecological care. 5. Some lawmakers are opposed to the plans to close sev- eral facilities, such as Sen. Jon Tester of Montana. "I will fight tooth and nail against any proposals that blindly look to reduce access to VA care or put our veterans at a dis- advantage," he said in a statement, according to the Post. 6. The proposal will be sent to the Asset and Infrastructure Review Commission. If lawmakers disagree with the pro- posal, Congress will have to take a vote, in which lawmak- ers must accept all of the changes or none, according to the Post. n "Despite a challenging 2021, we have conviction in our strategy." Bright Health Group

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