In Categories: Economic Impact

New model makes every dollar performance-based, with the majority tied to health outcomes for diabetes reversal

SAN FRANCISCO, California – November 14, 2018: Virta Health, the first company to safely and sustainably reverse type 2 diabetes without the use of medications or surgery, today announced a unique value-based care model that puts 100% of its fees at risk.

Healthcare has moved increasingly towards value-based care, but change has been slow, and at-risk components are typically small, without always being tied to improved health. Virta’s model is unique in that every dollar is earned by meeting performance benchmarks, and the majority of payment is tied to health outcomes.

“We founded Virta to not only reverse type 2 diabetes in millions of patients, but also to substantially lower the cost of chronic disease for payers and society as a whole,” said Sami Inkinen, Virta co-founder and CEO. “Now that we have both clinical trial and commercial results demonstrating diabetes reversal and cost savings at scale, we are ready to align our economic incentives with those of patients and payers by putting 100% of our fees at risk. I am hopeful that the rest of the healthcare industry will follow and transition away from fee-for-service based health care.”

Under Virta’s new payment structure, employers and health plans pay an enrollment fee only after an engagement milestone is met, ensuring patients stay active during the critical early stages of treatment. After that, every dollar, and the majority of overall payment, is at-risk and tied to health improvement based on diabetes reversal metrics such as HbA1c reduction—without per member per month payment or implementation fees. Virta estimates $9,600 per patient in medical and pharma savings in the first 24 months for payers, setting up a unique opportunity for payers to bring diabetes reversal to their populations nearly risk-free.

“Virta’s peer-reviewed health outcomes, high-patient satisfaction, and engagement levels initially got our attention,” said Hassan Azar, SVP of total rewards at US Foods, one of Virta’s customers. “What makes them even more impressive as a business partner is their willingness to put 100% of their fees at risk. Very few companies do this.”

This payment model is made possible through Virta’s peer-reviewed outcomes, which demonstrate diabetes reversal in 60% of patients completing one year of the Virta Treatment. For the first time, Virta is also releasing data from patients in its commercial population who participate in the Virta Health Registry. Of these patients, 61% achieve diabetes reversal and 77% of diabetes-specific medication prescriptions are eliminated at one year within the cohort. Retention remains exceptionally strong, exceeding clinical trial data, with 90% of patients remaining active at one year.

Virta’s pricing structure also better aligns with its use of Continuous Remote Care to deliver its interventions. The traditional fee-for-service health care model built for infrequent provider visits every 3-6 months is not compatible with Virta’s model of giving patients unlimited access to and support from its technology-enabled Virta medical providers. Continuous remote care is critical for reversing type 2 diabetes and safely removing medications as metabolic health is restored through Virta’s individualized therapies.

“Virta’s model provides a unique opportunity for payers to easily access a treatment that can get people healthy while actually saving money,” said Dr. Robert Ratner, former Chief Scientific and Medical Officer of the American Diabetes Association. “Payers get their money’s worth, because they only pay if patients see improved health. This is extremely rare in the healthcare industry, where maximizing profits has historically driven costs.”

For more information about Virta Health, its peer-reviewed outcomes, and the health and economic benefits of the Virta Treatment, visit www.virtahealth.com.

About Virta Health
Virta Health delivers a clinically-proven treatment to safely and sustainably reverse type 2 diabetes and other chronic metabolic diseases without the use of medications or surgery. At one year, 60% of patients in our clinical trial achieved diabetes reversal, 94% of insulin users reduced or eliminated usage altogether and 83% of patients remained active in the trial. Results extended beyond diabetes reversal, with sustained improvements in blood pressure, inflammation, cardiovascular markers, insulin resistance and weight loss. For enterprises, Virta estimates $9,600 in savings on medical expenses per patient over the first 24 months while tying treatment fees to successful outcomes. The Virta Treatment, delivered through a technology-enabled online clinic, will help millions of people get their lives back while making type 2 diabetes a thing of the past. To learn more, visit www.virtahealth.com or follow us on Twitter @virtahealth.

Media Contact
Paul Sytsma
Virta Health
Email: press@virtahealth.com

7 Comments

  1. So what’s the new pricing structure? Don’t see it in the article.

    Reply

    1. Virta Health

      We are having specific pricing conversations once in discussion with our employer and health plan partners. With that being said, in general we want to make sure we can reliably deliver return on investments in well under 1 year. The average person with type 2 diabetes costs payers $16,000 per year or 4 times more than someone without T2D. We can help remove a lot of that cost to create an economic win for payers. With at-risk fees, we provide an “all-upside” option for payers.

      Reply

  2. Dietmar Gann MD FACC FACP FCCP Diet of Hope .org November 17, 2018 at 2:17 pm

    While I fully support Virta, I disagree with your statement that that Virta was the first company to safely and sustainably reversed diabetes without drugs or surgery. My company Diet of Hope has been able to accomplish the same for the last 10 years. I will send you some of our publications. We have treated thousands of diabetics.

    Reply

    1. Virta Health

      Thanks for your note. We have forwarded your comment to our internal team. And congrats on helping your patients get healthy! We are always excited to see others having success, too.

      Reply

  3. I am 73 and have had T2D for 5 yrs. I believe I got it from taking Crestor (I have never been overweight and no family has had it.) I have been trying to reverse it since January 2018 on the Keto diet. I am on Metformin 1000 mg twice a day. I don’t seem to be able to lower my fasting bg to under 100 and lately, even tho I am now only eating one meal a day (dinner between 6-7pm and no more than 20 g carbs), my fasting bg seems to be rising! 7 days ago I got a Libre Freestyle continuous monitor and for the past 3 days my morning and all day readings range between 140-160! When I do eat supper it spikes to 285. Do you have any idea who I might be able to discuss this with? Can I become a Virta patient?

    Reply

    1. Virta Health

      Hi Elena, unfortunately we aren’t able to provide specific medical advice in this forum and we aren’t currently able to accept patients over the age of 69. We would encourage you to find a medical provider in your area that can support you and your health goals.

      Reply

  4. I appreciate all the research and sharing of data from your trials. Changing the existing thought process of individuals accustomed to the past medical system approach and those providing so called “professional direction” is a monumental task.
    What is completely lacking is a referral process to a medical profession willing to accept a malpractice risk to direct patients to a ketogenic, lifestyle altering approach. Neil Sol began 1800Doctor in Atlanta, GA. He could get few subscribers, yet, in time, as referrals started coming, his service flourished. Virta, Denver Diet Doctor, IDM, etc, all have proper approaches. They are, however, pretty self serving.
    At 72 years of age and one of the past developers, director and instructor for Professional Fitness Instructor Training, located at and in conjunction with the Baylor Sports Medicine Institute in Houston, TX, I have no desire to begin such a journey. Did I mention PAST.
    There is, however, a great need for a referral system. LCHF need not muddle uphill. Coordination through an entrepreneurial effort could accelerate a much needed assistance to all those suffering in our current non-health system

    Reply

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