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Why Anthem + Beacon Health Options is a Gamechanger

Hi all you cool cats and kittens. Over the past month, I’ve heard of one mega deal in the mental and behavioral health space that has been overshadowed by COVID-19. It is my assertion that this lone M&A transaction will have longstanding implications on the healthcare startup ecosystem. Mental health is an aspect of health and wellness that I care deeply about. I previously served on the Board of Directors for a local mental health non-profit, NAMI Northern Virginia where I met some of the kindest humans helping individuals and families. It is there I realized that 1 in 5 U.S. adults experience mental illness each year and suicide is the 2nd leading cause of death among people aged 10-34 years old. We are suffering a mental health crisis in this country that requires continued innovation. And yet, psychiatrists and mental health providers are consistently underpaid relative to their peers, leading to further access to care issues (see below).

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3 Questions Every Startup Asks About Payers

I have recently seen a number of digital health startups recruiting for individuals to lead payer strategy and business development. This initially led me to two reactions. First, word of caution to those looking to fill the role, it is completely different to work for a payer versus successfully sell into one. Don’t just fall for someone who worked at UnitedHealthcare or Aetna, those are a very far cry from a startup (no offense). Ideally, you hire someone with experience from both. Second, far too many startups lack the robust understanding of the payer market in their existing leadership team, which could be eventually become their Achilles’ heel.

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Choose Your Own Adventure: Venture Capital or Private Equity

I write about startups and right now, it’s a particularly challenging time for them. Not the kind that front-line healthcare workers or grocery store staff are experiencing, but a challenging time nonetheless. Because of all the pain and stress in the world, I find that startups have a hard time attracting sympathetic crowds. Just check out the title of a recent NYTimes article.

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