The United States has one of the highest costs of healthcare in the world. In 2021, it is projected U.S. healthcare spending reached $4.1 trillion, which averages to over $13,000 per person. As a clear outlier on enormous spending versus other wealthy countries that is unfortunately not delivering better patient outcomes, one company is finding a way to improve the quality of patient care while making healthcare simpler and more affordable. Evolent Health works with hospitals to attempt this seemingly impossible task by delivering clinical and administrative solutions to payers and providers.
The company supports health systems and physician organizations as well as health plans to move their business models from traditional fee-for-service reimbursement to value-based care. Evolent operates through two segments – Health Services and Clinical Solutions. Its Health Services segment houses its administrative simplification solution and certain supporting population health infrastructure, while its Clinical Solutions segment includes its specialty management and physician-oriented total cost of care solutions through its New Century Health and Evolent Care Partners brands.
Evolent is currently undertaking a comprehensive strategy for growth across both its addressable market and its overall share, whilst leveraging several transformational industry trends. It has embedded multiple drivers of growth through increases in covered populations, partners expanding into new lines of value-based care, cross-selling additional solutions, as well as capturing value through a variety of risk-sharing arrangements.
Evolent is also planning to capitalize on growth in government-driven programs. As the number of people managed by these programs in the United States has seen significant growth. The company will also continue to expand its offerings to meet evolving market needs, and more broadly, it anticipates that continued acquisitions of niche vendors will help boost technical capabilities.
Equipped with multiple avenues to future growth, coupled with only capturing a small fraction of the addressable market, Evolent is well-positioned to extend its share of an enormous opportunity.