Duane Fitch, Plante Moran’s healthcare management consulting leader, spoke with Fierce Health about the financial trends in insurtech and what state regulators can learn from Bright Health’s financial woes. Bright Health revealed on March 1 that it had overdrawn its credit and would need to secure $300 million by the end of April to stay afloat. Bright was among a group of insurtechs that all went public in the same year, alongside Clover Health, Oscar Health, and Alignment Healthcare.
Fitch and other industry experts contend that the healthcare and financial industries need to examine why insurtech finds itself in its current position and make systemic changes that might prevent another similar meltdown. When sharing guidance for providers, Fitch notes, “Part of the lesson here is getting back to the fundamentals and accelerating the pathway to viability, as evidenced by operating earnings and positive cash flow and other important foundational metrics.”
Read more to discover how the healthcare insurance industry seeks to create value while accelerating the pathway to viability.
