Devoted Health Series B

This is the Devoted Health Pitch Deck used to raise a total of $300M. Well, hang on. That’s a lie. There’s only 3 slides in their deck. But if you’re interested, I’m sharing just in case.

The reason there isn’t the whole deck is not available is that “Business Insider obtained” the pages, i.e. some sneaky fecker leaked them.

---

 

 

Devoted figures that Medicare Advantage plans typically generate margins of about 5%. It said that by its fifth year of operation, it would generate margins of 14.6% on members who enrolled in its first year.

To get there, Devoted in part plans to make money by owning its own medical group, in addition to the insurance operation.

“By delivering clinical services, Devoted both lowers the total cost of care for Devoted’s Medicare Advantage plan and also earns revenue and margin for Devoted’s Medical Group,” one slide said.

 

 

Through January, Devoted had enrolled 2,114 members in the Florida counties where it is initially offering plans, according to the Centers for Medicare and Medicaid Services.

The slide shows its projections for getting to more than 100,000 members. Yeah, sure thing mate.

They explain why Devoted thinks they can generate better margins than other Medicare Advantage health insurers.

According to an interview Business Insider did one expert said Devoted wasn’t drawing a perfect comparison between itself and other Medicare Advantage plans because it was using just one group of members.

“It’s apples-to-pineapples at best,” David Anderson, a researcher at Duke University who previously worked at a health insurance plan, told Business Insider after reviewing the slide. “They’re choosing what they believe is their best cohort.”

Anderson described the projections as “extraordinarily optimistic” but said the company could save the health system a lot of money if it pulls this off.

“If they can do this, good for them because they will have found a way to provide good healthcare at a significantly lower cost,” Anderson said.

Katherine Hempstead, a senior policy adviser at the Robert Wood Johnson Foundation, told Business Insider it was difficult to parse the financial projections without knowing whether Devoted would expand its footprint or how the company plans to use its Devoted Medical Group.

“I don’t think they’re just pulling numbers out of a hat. They know a lot,” she said. “There’s just an unbridled enthusiasm in the insurance segment.”

Deck Collection

See the rest of the collection here:

BACK TO THE DECK COLLECTION