Blue Cross Venture - Blue Health Intelligence Proving to Be Very Costly And Received Another 9 Billion From Undisclosed Source
Posted May 10 2012 1:06pm
So far according to this article it has been hard to quantify the real dollar amounts that have been saved. We all know there’s a lot more data out there of course with the creation of the venture. Recently it was announced that the firm that manages the Blue Cross venture was moving to San Francisco to start up an incubator so is this a sign of perhaps where some of the funding may have come from? With starting an incubator this is a sure sign that they are looking for more code for analytics.
(Crain's) — A venture of the Blue Cross & Blue Shield Association that analyzes health care information on 110 million people has raised more than $9 million in equity, as insurers comb patient records for ways to cut costs and improve medical care.
Blue Health Intelligence uses claims data that has been stripped of identifying information to study health care trends, using records covering nearly one-third of the U.S. population.
Founded in 2006, the venture is backed by the Chicago-based association and 18 of the 38 insurers that use the Blue Cross name, which is licensed to them by the association.
Despite showing promise, Blue Health Intelligence has proven to be a costly endeavor, with $31 million in revenue and $43.6 million in expenses in 2010, the most recent year available, according to the tax return for the nonprofit association.
The $9.4 million in capital was disclosed last month by Blue Health Intelligence in a filing with the U.S. Securities and Exchange Commission, which does not identify the source of the money. The funding still leaves the venture short of its goal of raising $13.1 million, according to the filing.