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INTERNET | Internet Software & Services / Healthcare
parsleyhealth.com

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Founded Year

2016

Stage

Series B | Alive

Total Raised

$37.68M

Last Raised

$26M | 2 yrs ago

About Parsley Health

Parsley Health is a high-tech modern medical practice that combines cutting-edge diagnostic testing with the latest in nutrition and lifestyle interventions. Centers are located in NYC, LA and SF. Using an outcomes-driven approach, Parsley Health pairs doctors and patients for the long-haul, monitoring and supporting patient health longitudinally. By redesigning primary care to focus on the root cause of disease, the Parsley model has been proven to reverse and cure chronic conditions, improving health and wellbeing while reducing lifetime health care costs.

Parsley Health Headquarter Location

126 5th Ave 2nd Floor

New York, New York, 10011,

United States

Latest Parsley Health News

Why the hottest primary care startups aren't chasing Medicaid

Jun 14, 2021

But low-income populations on state-run assistance programs aren't key parts of their plan, the companies tell Insider. Closely watched companies like Oak Street Health and Iora Health are chasing the growing and lucrative market of caring for seniors 65 and up who are on Medicare. Rival One Medical  said in June it's buying Iora in a $2.1 billion deal that'll expand the publicly traded primary care company's business beyond those who are commercially insured. These companies typically offer online booking as well as in-person and video and text-based telehealth services to patients who pay a membership fee, or whose insurer or employer covers the cost of their care. But the more than 72 million people on state-run Medicaid programs won't be able to access many of these services any time soon. And health equity experts warn that failing to include them could widen disparities that only grew during the pandemic. One Medical, for its part, has already been scrutinized for allowing ineligible patients to skip ahead in COVID-19 vaccination queues earlier this year. It's not just because Medicaid reimburses at a lower rate than other insurance programs, industry experts say—it's also because Medicaid enrollees flow in and out of the program, and because their health problems tend to be more immediate instead of longer-term conditions associated with aging like diabetes and heart disease . It's also harder to show you've saved money when you're treating acute conditions, experts said. "We need to guard against creating tiers in our healthcare system," said Ann Greiner, president and CEO of the lobbying group Primary Care Collaborative. "They exist, and we want to make sure we don't exacerbate them." Why primary care companies aren't chasing Medicaid A handful of companies, like the Alphabet-backed Cityblock Health , are developing health services including primary care specifically for low-income populations. Women's health startup Tia is also partnering with Dignity Health, which already works with Medicaid programs, to accept Medicaid in Arizona. But many others — including Parsley Health, Crossover Health, and One Medical — told Insider they do not currently accept Medicaid payment and have no immediate plans to do so. One Medical, however, does waive its annual membership fee. In its early years, Parsley is mostly focused on chronic disease, according to the company. And One Medical's business model isn't yet set up to align with Medicaid's payment requirements, the company said. Crossover Health did not clarify why it wasn't pursuing the Medicaid market. It's also likely in part because of lower reimbursement rates. "Medicaid pays providers too little," said Regina Herzlinger, a Harvard Business School professor who studies consumer-driven healthcare. Herzlinger added that low income patients should — but don't — have access to the same providers as as patients insured by employers or Medicare. And lower rates might cause investors to balk, SCAN Group CEO Sachin Jain said. Jain is the former CEO of CareMore, a subsidiary of Anthem, which previously explored treating Medicaid patients. When investors assess health-tech companies, they're looking at revenues and margin opportunities, Jain said. "The truth is, the revenues associated with taking care of a Medicare population are just higher," Jain said. But it's not just about the money. Because Medicaid eligibility is typically determined by income, people come on and off, making it hard to maintain a longterm primary care relationship, Jain said. And older populations often have higher rates of chronic conditions that constant monitoring by primary care companies can help manage, including by averting expensive procedures down the line. For someone who might be eligible for Medicaid because of their income and need immediate treatment for cancer, it can be more difficult to show the benefit of more preventive care, Jain said. "It's not necessarily easy to modify cancer care costs, whereas with other kinds of diseases you can avoid a hospital admission by better managing someone's condition," Jain said. Shoring up healthcare for patients with expensive, difficult-to-manage conditions like diabetes or kidney disease also makes it easier to demonstrate both to patients and payers that their model saves money and improves health, Oak Street's chief medical officer Griffin Myers said. Oak Street offers in-person and virtual behavioral and primary care visits, transportation, and pharmacy services largely to senior patients. "We have a very, very, very specifically engineered program," Myers said. "If you took our model and started enrolling healthy eight-year-olds, it would be the biggest, stupidest waste of time." Widening the health gap Still, health equity advocates warn that membership-based primary care companies could widen the gap between the types of digitally-friendly health services available to low-income and uninsured patients and the patients on plans that partner with these companies. Primary Care Collaborative's Greiner warned that without improving Medicaid reimbursement rates, primary care tech companies won't have an incentive to improve healthcare for low-income patients. She said her group and other health equity advocates have urged Congress and the Centers for Medicare and Medicaid Services to bump up the rates. They've supported bills that could increase patients' access to the data plans, Wi-Fi and devices that some of these primary care companies rely on for video calls, she added. Especially during the pandemic, patients who can't access video have had to use audio-only calls for doctors' visits. "We do have concerns about the equity dimension," Greiner said. Cityblock Health's cofounder and head of product Bay Gross said the majority of the company's Medicaid patients have mobile devices equipped to access digital health, but that connectivity and Wi-Fi are common barriers. But digital services may always be out of reach for some low-income patients, Joan Alker, a Georgetown University research professor and executive director of the Center for Children and Families, said. "There are going to be some folks who are, for a variety of reasons, not connected," Alker said, including that they're experiencing homelessness or are unable to pay for the technology. While tech-based services like telehealth can be useful, Alker said, "they can never be the only solution." SCAN's Jain warned that it's not clear yet that these services like apps, telehealth visits, and texts from providers meaningfully improve health outcomes — and especially not for Medicaid populations, which often have higher concentrations of children, pregnant women, and acute conditions. If these companies can demonstrate that their high-tech services lowers the number of hospitalizations, length of stays and prevents the progression of chronic disease, it could start to move the needle. "Those are the things that actually make a difference to people and families," Jain said. Was this article valuable for you?

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Research containing Parsley Health

Get data-driven expert analysis from the CB Insights Intelligence Unit.

CB Insights Intelligence Analysts have mentioned Parsley Health in 2 CB Insights research briefs, most recently on Mar 29, 2021.

Expert Collections containing Parsley Health

Expert Collections are analyst-curated lists that highlight the companies you need to know in the most important technology spaces.

Parsley Health is included in 6 Expert Collections, including Wellness Tech.

W

Wellness Tech

1,159 items

We define wellness tech as companies developing technology to help consumers improve their physical, mental, and social well-being. Companies in this collection play across a wide range of categories, including food and beverage, fitness, personal care, and corporate wellness.

D

Digital Health 150 (2019)

150 items

2019's cohort of the most promising digital health startups transforming the healthcare industry

H

Health & Wellness Assessment

6,379 items

Companies developing or offering products/services that aid in the assessment, screening, diagnosis, or monitoring of one's state of health/wellness. Includes specialized diagnostic centers and physician groups (but excludes diversified facilities and providers).

D

Digital Health 150 (2020)

150 items

The winners of the second annual CB Insights Digital Health 150.

D

Digital Hospital - 2020

98 items

Startups recreating how healthcare is delivered

D

Digital Health

10,007 items

Companies that use or incorporate digital technology into their health and wellness product/service offerings.

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