Evolent Health beats share expectations

Evolent Health is the latest digital health firm to go public and fetch more than expected, according to Reuters, having raised $195.5m in an upsized IPO that puts the price of each share at $17. The figure is higher than the $14 to $16 range set out by the firm, and the 11.5 million shares are greater than the 10 million planned in the first instance.

The firm works with hospitals that pay doctors not for treatment but for keeping patients healthy

Judging by the aforementioned figures, the firm, which assists progressive healthcare systems in leading, building and owning their own path to value-based care, is worth some $950m. “Evolent provides the integrated technology, tools and team to advance value-based care,” according to the Virginia-based firm, namely by keeping to a strategic roadmap “that defines target markets, assesses needed clinical and operational capabilities, and is supported by a detailed business case.”

The firm works with hospitals that pay doctors not for treatment but for keeping patients healthy, as part of what Evolent calls a “progressive” healthcare system. Founded in 2011 by its principal two shareholders, UPMC Health Plan and The Advisory Board Company, Evolent ranked twelfth in Forbes’ list of America’s Most Promising Companies and third in Glassdoor’s list of Best Places to Work in 2015.

The firm is to list on the NYSE under the symbol ‘EVH’ and follows a number of similar such digital health firms, including Doximity, Best Doctors and Healthgrades, which, whilst different services, have each benefitted as a result of the shift to digital in healthcare. Last year, venture funding for digital health companies tipped the $4.1bn mark, equivalent to the previous three years combined, and, judging by the year so far, the upward trend looks set to continue.