The government remains the largest single payer of health care in the United States. Instead, wearables, calorie-counting apps, and nutritional supplements have proven more attractive to those who are looking for a quick return.Īs Slavitt puts it, this is technology that 'chases the wrong problem.'Īnd despite what investors think, financial returns from these more popular start-up ideas might also be limited. Many investors in Silicon Valley don't take on these challenges as they involve working with the federal government, both as a payor and potentially as a regulator. If it can deliver, the payor shares a portion of the amount saved. The idea is that a company can put forward a proposal to a payor - like the government or an employer - describing how it will bring down costs. The company sees a path to make money by taking on the risk of these populations, and delivering better, more affordable care. Cityblock isn't treating patients yet, but its goal is to help low-income Americans with costly and complex needs access a range of services, including housing and support.Ĭityblock isn't a purely philanthropic enterprise. His first investment, in an Alphabet spinout called Cityblock, is in the ideal space. 'We need to talk about real human problems,' he said. People with chronic conditions, like diabetes and heart disease, account for 86 percent of America's health care costs. While running the Centers for Medicaid and Medicaid, Slavitt did not lie awake at night worrying whether the prototypical Fitbit or Apple Watch user met their step goals. He declined to share his limited partners or the funding amount at this stage, as he's still in the process of recruiting partners to join him. CNBC caught up with him about his new fund, which is still in the development phase. Slavitt has now returned to his home town right outside Minneapolis, Minnesota, to invest in ideas that will improve the health care system. 'We need to stop investing in the third Fitbit for the 50-year-old upper-class person and start innovating for people who have common diseases and conditions, but live in communities with low access to care,' he said.

While traveling the country, he refined his investment thesis after hearing from everyday Americans about their health woes and anxieties. His answered questions, broke down policies, and urged anyone who attended to write their senator to block the Republican health bill. On a tour of the country, Slavitt made appearances in towns ranging from Cleveland, Ohio to Reno, Nevada. When members of Congress declined to hold town halls to educate their constituents about the pros and cons of the health bill, Slavitt showed up instead. Slavitt made a name for himself as the entrepreneur-turned-Medicare chief who took on Republican lawmakers seeking to repeal the Affordable Care Act. Personal Loans for 670 Credit Score or Lower Personal Loans for 580 Credit Score or Lower Best Debt Consolidation Loans for Bad Credit

Andy slavitt