The news: Primary care provider Vera Whole Health is merging with healthcare pricing transparency and navigation company Castlight Health in a $370 million all-cash deal, per a joint press release.
More on Vera Whole Health and Castlight Health:
What this means for the duo: A navigation platform like Castlight Health’s should make it easier for Vera Health’s employer clients to understand their health benefits.
A navigation platform like Castlight Health’s could fit neatly into provider network Vera’s offerings:
Ensuring employees understand which health benefits are available to them is key to boosting chronic disease management and reducing long-term employer costs:
Zooming out: The Vera-Castlight Health merger is likely a sign that the digital health IPO boom is slowing down. Instead, companies like it could increase consolidation this year to remain attractive to clients.
For context, in 2014, Castlight Health was one of the first digital health companies to take the public leap. Since then, the pandemic-induced demand for virtual care services has convinced companies like Amwell and Oak Street Health to go public in order to rapidly scale, too.
However, now that there are far more digital health solutions on the market this year, employers and insurers have more options to wade through, and it’ll likely only get more difficult to nab employers’ attention.