Sach Jain is the CEO and co-founder of Carrum Health, which is intent on playing a role in the shift from fee-for-service to value-based care.
Why did you start this company?
We founded Carrum Health to change how we pay for healthcare in the U.S.. Our mission is to move the healthcare system away from the perils of fee-for-service payment model and accelerate its shift to value-based care.
What specific need/problem are you seeking to address in healthcare?
Healthcare costs in the U.S. are on a trend that is out of control. Just recently a KFF report highlighted that employers are paying north of $20,000 per employee on their health benefits. 40-50 percent of this total spend is on planned surgeries. In our legacy fee-for-service payment model, there is no accountability for either the cost or quality. Prices for the same procedure can vary up to 10X with limited correlation to quality. We want to change it.
What does your product do? How does it work?
Carrum Health is driving the transition away from fee-for-service to value-based care where providers are accountable for both cost and quality. We deliver a benefit that self-insured employers can offer their employees in addition to their health plan coverage. By establishing partnerships with providers at leading healthcare systems across the nation, and pre-negotiating all costs associated with specific surgical procedures, we are bringing the highest quality care at a lower and predictable cost; ultimately delivering better outcomes to patients.
Carrum’s innovative solution is gaining recognition nationwide – HBS made Carrum the subject of a case-study that they are currently teaching and a well-known health policy think-tank, Catalyst for Payment Reform also featured one of Carrum’s customers in their case-study to highlight innovation happening in healthcare payments.
Is this your first healthcare startup? What’s your background in healthcare?
Prior to Carrum, I was part of Booz & Co. (later acquired by PwC ), where I was an adviser to some of the nation’s biggest health plans and health systems. My expertise was focused on helping them navigate the changes brought on by healthcare reform, especially related to value-based care models such as bundled payments.
I have recruited a world-class team to help us scale the company. Our leadership team has experience at companies like Livongo, Allscripts, Walmart eCommerce, PayPal, Color Genomics, GoPro, the Centers for Medicaid & Medicare Services, and even The White House.
What is your company’s business model?
Carrum Health directly connects progressive, self-insured employers to top-quality regional healthcare providers through the industry’s first comprehensive bundled payment solution. Our innovative platform re-imagines how health care is paid for and delivered; improving the value of health benefits for employers and their members.
Who is your customer? How do you generate revenue?
Our primary customers are self-insured employers and benefit consulting firms. We have more than 100 employers using our platform, such as U.S. Foods. We will also be announcing a few other exciting client launches in the coming months, so stay tuned!
Photo: Yuri_Arcurs, Getty Images