Virta Health Puts 100% of Fees at Risk with Announcement of New Pricing Structure

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