" To summarize the Clover Assistant / Tech Platform / Direct Contracting session:
- Understanding current adoption of the Clover Assistant is sketchy at best
- There’s no real data supporting how Clover Assistant reduces medical spend
- Direct Contracting is an early but potentially meaningful regulatory change
- If Direct Contracting takes off, it seems plausible that companies supporting it will do very well
- Clover looks like its pivoting to an MSO model to chase this growth
Clover sounds an awful lot like a regional provider-sponsored Medicare Advantage plan that raised a bunch of VC money to build a cool tech platform to support the providers and scale the approach nationally.
Unfortunately while Clover was building out the tech it has screwed up on the MA plan and tanked its quality ratings.
The MA plan hasn’t demonstrated it can scale anywhere beyond New Jersey — where its friendly providers are — and Clover appears to be shifting its focus to drive future growth by becoming a tech platform / MSO for primary care docs in the nascent Medicare Direct Contracting space. That move certainly may work out well and Clover could take off in that space, but the
concept seems more belief-driven than fact-driven at this point based on whats shared in the investor deck.
The investor deck as a whole seems at best misleading as to current state of the business."
