US health insurance co Elevance closing Israeli center

After five years of presence in Israel, American health insurance giant Elevance Health Inc. has decided to… It ceased its activity here, the Globe learned. The development center, formerly called Carelon, and run by Udi Goori, handles the development of strategic digital health solutions for Elevance, and employs about 40 people with special knowledge and training in artificial intelligence and data processing in the medical field.

Besides technological development in the field of digital health, the center was also responsible for cooperation with Israeli startups. Through the center, deep collaboration has been created between Elevance and companies such as K, TytoCare, VIM Diagnostic Robotics, MDI Health, and others, all concerned with the patient journey in the health system. In the case of some companies, Elevance has helped integrate their products into the US health system, and for TytoCare in particular, the association (which will continue) is important, and includes installing thousands of its home health care devices with Elevance customers.

Additionally, Elevance recently implemented a boost and accelerator program for younger startups to help them understand the needs of the U.S. health system in-depth.

Losing contact with Elevance is a major blow to Israel’s digital health sector. The distance from the American market and the fact that most Israelis do not know the American health system from the inside makes it difficult for them to understand its needs. Collaborating with Elevance has helped them make their value propositions more precise, as well as demonstrate value and form connections with the US health system. The blessing is that the center’s employees will be able to transfer their knowledge of the system to other companies, perhaps companies they will find themselves.

Share price decreases 15%

The reason for the closure of the Israeli center is not clear, but it seems that it is not related to the political and security situation in the country or disappointment in the quality of the center’s outputs, as, as far as we know, its activity was limited. Extensive and successful. Besides working with startups, Israeli group Elevance has built the company’s digital platform for chronic disease counseling and management, a support program for patients discharged from hospital, and has also published articles on medical topics.

The reason for this move may be related to problems in the company itself. Elevance has a market capitalization of $95 billion, and last month its stock price fell 15% after weak quarterly financials and a cut in its guidance, a result of a decline in the number of its subscribers from the government insurance system Medicare.

When asked by Globes about closing the development center, Elevance responded: “As part of a general corporate process due to changes in conditions in the healthcare market, Elevance Health has made the difficult decision to close the Carillon Israel Center. We thank and appreciate our employees in Israel for their dedicated work.” “For their achievements, we are committed to supporting them throughout the process.”

Published by Globes, Israel Business News – en.globes.co.il – on November 15, 2024.

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