Lessons from Livongo and Teladoc will help solve the next generation of healthcare challenges

Homeward's Amar Kendale, former chief product officer at Livongo and Teladoc, discusses how the industry must combine technology and new care models to improve access and make value-based payment successful. Massive market and demographic changes that are currently taking place will hasten the transition to value-based healthcare. An illustration would be the prediction made by the Medicare Payment Advisory Commission (MedPAC) that Medicare Advantage membership will soon surpass that of regular Medicare for the first time. Our healthcare system is undergoing a broad shift away from a focus on volume (precipitated by traditional Medicare, which operates on a fee-for-service model) to value (precipitated by Medicare Advantage, which rewards health outcomes), as more people than ever before are becoming eligible for Medicare. Large health plans are increasingly driven to develop cutting-edge strategies to maintain people's health as these value-based payment models gain traction as a result of the expansion of Medicare Advantage. This justification prompted CVS Health to intend to purchase Oak Street Health for $10.6 billion and $8 billion, respectively.