Evolent Health today registered for a $100 million initial public offering for its value-based healthcare software platform as it looks to capitalize on its estimated $10 billion market.
Arlington, Va.-based Evolent, founded in 2011, said it plans to list on the New York Stock Exchange under the "EVH" symbol.
The company’s platform is designed to help healthcare providers migrate from fee-for-service reimbursement to "payment models that reward high-quality and cost-effective care," or value-based models, according to Evolent’s registration filing.
"By partnering with providers to accelerate their path to value-based care, we enable our provider partners to expand their market opportunity, diversify their revenue streams, grow market share and improve the quality of the care they provide," according to the filing.
Evolent said it thinks the addressable market is $10 billion, "based on health insurance expenditures, the total percentage of payments providers receive under value-based contracting, the size of the provider-sponsored health plan market and the fees we believe we can charge."
"We believe this opportunity will grow to over $46 billion by 2020 driven by health insurance expenditures increasing from approximately $2.1 trillion in 2013 to approximately $3.2 trillion in 2020, the total percentage of payments providers receive under value-based care models growing from 10% to 50%, and the provider-sponsored health plan market representing 15% of total health plan membership," the company said.
Evolent’s fiscal 2014 losses grew 59.5% to -$52.3 million, on sales growth of 150.4% to $100.9 million, according to the filing.
