Accolade

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Accolade - Key Business Drivers

Six key drivers for Accolade's business are its personal advocacy solutions (technologies), customer relationship/satisfaction, increased membership, financing/investment, clinical expertise, and cost of health for employers.

METHODOLOGY

We began our research by looking for sources with pre-compiled information on the key drivers for Accolade's success. After thoroughly reviewing Accolade's website, news reports, press releases, and industry reports, we could not find pre-compiled information.

As a result, we opted to leverage information obtained through the above strategy to attempt to determine the factors that make Accolade successful, by drawing inferences from information that point to the company's growth over time as a measure for success. Below are six key drivers for Accolade's business, as deduced from available information about the company.

KEY DRIVERS FOR ACCOLADE'S BUSINESS

#1: PERSONALIZED ADVOCACY SOLUTION (ACCOLADE TECHNOLOGIES):

According to GeekWire, technology is the reason for Accolade's growth and success. By recognizing that healthcare is a complex industry without much technology at the core of it, Accolade is committed to using technology to change the healthcare system. The company's success through technology is due to its efforts in "building an open, accessible technology platform" that addresses the concerns of healthcare professionals and providers, as well as their clients through applications and online dashboards.

Accolade's cloud-based platform integrates and personalizes employer health and benefits programs, offering a simplified experience thereby increasing engagement. The platform holds a wide range of client data which includes lab results, biometrics, medical and Rx claims, point solution data, risk scoring, among others. These sets of data offer personalized healthcare recommendations by health assistants.

Accolade's technologies include Maya Intelligence Engine, Accolade Mobile, Accolade Ecosystem, Accolade Online, Accolade IQ, and Accolade InView.

#2: CUSTOMER RELATIONSHIP/SATISFACTION:

Accolade takes pride in "building long-term, one-to-one relationships" with its members, and addressing all of their needs and concerns. For the company, compassion is the foundation for establishing trust with members, while providing seamless, personalized support that influences healthcare decisions. The company's customer service helps and guides its members through the intricacies of the healthcare system. Its health assistants support members, addressing concerns such as inquiry and any issues related to benefits, eligibility, claims, and billings.

According to Crunchbase, Accolade consistently achieves Net Promoter Scores of 70 and higher, with 98% consumer satisfaction ratings.

#3: INCREASED MEMBERSHIP (NUMBER OF CUSTOMERS/MEMBERS):

According to a GeekWire article, as of 2016, Accolade had been serving more than 800,000 members. However, in a March 2018 press release by Accolade, the number of members reached 1.1 million. In another press release on August 29, 2018, Accolade reported that its total membership increased to more than 1.5 million.

#4: FINANCING/INVESTMENT:

In 2016, Accolade received $70 million in funding from Andreessen Horowitz and Seattle-based Madrona Venture Group, bringing the total funding raised as of that time to $90 million. The fund was to be used to improve the Accolade technology platform, sales & marketing initiatives, and research & development for the company's drive in innovation. Then, in 2018, Accolade announced that it had received an additional $50 million in funding, to be used to expand the company's workforce, entrance to new market opportunities, and expand its Personalized Advocacy solution offerings for its members. According to Crunchbase, Accolade has raised a total of $217.3 million funding from eight rounds.

#5: CLINICAL EXPERTISE:

Accolade takes pride in the clinical model which it provides its members with. The Accolade clinical team has multiple and advanced degrees, with vast experience and specialization, which includes oncology, pediatrics, and behavioral health, among others. This team comprises nurses, doctors, and clinical specialists utilizing evidence-based support for any condition.

Among several activities, the Accolade clinical team coordinates and communicates with healthcare providers to close the gaps in care and guarantee continuity across care settings. Additionally, Accolade offers integrated clinical services and programs to provide consistent support, which includes case management, high-cost claimants, nurse triage, disease management, Rx support, maternity, behavioral health, pre-admission & post-discharge support. With this, Accolade is assured of better engagement among members, recording 90% high-cost claimants annually and a 6.1% reduction in ER visits.

#6: COST OF HEALTH FOR EMPLOYERS:

According to PR Newswire, a study was conducted by the global professional firm, Aon, comparing medical utilization and financial results among some of the largest and most competitive benefits programs in the United States using IBM MarketScan Research Database. Based on the study, Accolade personalized advocacy achieved "substantial and sustainable healthcare cost savings" — between $527 and $782 per employee per year — across entire employee population of all ages, conditions, spend categories, and health profiles. It confirmed that to reduce healthcare cost, it needs to engage the whole population, and provide a deeply personalized experience through people and technology. According to Accolade, its programs allow for 4.4% cost savings in the first year, reaching 15% savings in the fifth year.
Sources
Sources

Quotes
  • "Accolade is a personalized health and benefits solution that dramatically improves the experience, outcomes and cost of healthcare for employers, health plans and their members. With a unique blend of compassionate advisors, clinical experts and intelligent technologies."
  • "Accolade consistently achieves 70 and higher Net Promoter Scores, 98% consumer satisfaction ratings, and up to 15% employer cost savings. "
  • "Accolade has been recognized as one of the nation’s 25 most promising companies by Forbes, a fastest-growing private healthcare company by Inc. 5000, and is consistently rated a Top Workplace across the country."
  • "Accolade has raised a total of $217.3M in funding over 8 rounds."
Quotes
  • " In a nutshell, the company’s service guides customers through the ins and outs of the healthcare system."
  • "Accolade is one of a growing number of companies working to change the healthcare system using technology. Companies including Microsoft, Apple and notably Amazon have are increasingly moving into the healthcare space, and investment in healthcare companies is on the rise."
  • "Against that backdrop, Accolade has announced a series of milestones. It unveiled its AI-fueled healthcare personalization platform last year and in March it raised $50 million, topping $200 million in venture investment. On Wednesday, the company said it now serves 1.5 million employees and their families in the United States. Accolade’s employee base has grown to 900 people, with plans to add another “couple hundred” in the next year. About 100 of the company’s current employees are based in the Seattle region."
  • "Hilton credited the company’s progress to two main factors: Building an open, accessible technology platform, and seeking to create a customer experience that people actually enjoy."
Quotes
  • "It’s time to make healthcare work for everyone – simply, efficiently, and seamlessly. That’s the beauty of Accolade."
  • "And we connect the vast world of healthcare technology innovation, enabling highly efficient and personalized healthcare support for each individual. Simpler is better for everyone – for employees, their families, and their employers."
Quotes
  • "Accolade reduces the complexity and expense of healthcare by empowering individuals and organizations to make better decisions, both medical and financial. One of the most important segments of Accolade’s customer base is made of large and mid-sized enterprises who pay for their own healthcare costs for their employees."
  • "The key to this cost management is Accolade’s ability to pair every employee and plan member with a personal healthcare advisor. The advisor forms a trusted, personalized relationship with the member and serves as their guide throughout the healthcare process — from questions and support around benefits and bills, to healthcare questions and needs."
Quotes
  • "The Series E round was led by Silicon Valley powerhouse Andreessen Horowitz, and Seattle-based Madrona Venture Group participated as well. Accolade says it will use the money to improve its technology platform, research and development capacity and sales and marketing initiatives. "
  • "“We can grow like crazy, we can build a bunch of technology that delivers a ton of value and we can change the way healthcare works in this country,” Singh said about what the company can do with the newest investment."
  • "Accolade helps its more than 800,000 customers on various health plans and health systems save approximately 5 to 15 percent on healthcare costs, he said."
Quotes
  • "More than 500,000 healthcare consumers (members) joined the Accolade member base in the first half of 2018. Accolade has welcomed several new employer customers that range in size from 1,000 employees to more than 200,000, and it now provides personalized advocacy services to more than 1.5 million people in the U.S. "
Quotes
  • "Accolade, the single point of entry to personalized health and benefits, will apply this capital to take advantage of new market opportunities, grow its workforce, and expand its Personalized Advocacy solution used by more than 1.1 million U.S. employees and their families today."
Quotes
  • "magine the power in having an independent team of nurses, doctors and clinical specialists providing personalized, evidence-based support for each of your members, regardless of condition, acuity, or stage of care. Preparing them for visits and procedures."
  • "Working in lockstep with Accolade Health Assistants is our team of doctors, nurses, behavioral health clinicians, pharmacists, social workers and clinical leaders. Members of the Accolade clinical team typically hold multiple advanced degrees and bring decades of experience in their areas of specialization, including emergency medicine, oncology, obstetrics, diabetes, behavioral health, pediatrics and many others."
  • "Our integrated care management programs are at the center of our total health management approach for the members we serve. Unlike traditional care plans that treat each condition separately, "
  • "Accolade offers integrated clinical services and programs that put the member at the center of care, providing consistent support to promote compliance and optimize self-management skills."
Quotes
  • "According to a rigorous independent comparison study by global professional services firm Aon, Accolade personalized advocacy enables self-insured employers to achieve substantial and sustainable healthcare cost savings – ranging from $527 to $782 per employee per year – over a matched multi-employer control group."
  • " the study compares the medical utilization and financial results of two self-insured employers using Accolade's personalized advocacy solution to a precisely matched control group selected from the IBM MarketScan® Research Database. The control group comprises some of the largest and most competitive benefits programs in the country."
  • "Accolade achieves cost savings for employers of any size. It is highly rewarding to have such prominent actuaries analyze and substantiate our model with such rigor and precision."
  • ""This analysis represents one of the most rigorous comparison studies conducted on employer healthcare cost drivers and savings," said Aon Senior Vice President Todor Penev, Fellow of the Society of Actuaries and Member of the American Academy of Actuaries. "The results demonstrate that Accolade's customers have experienced cost reductions through personalized advocacy beyond what typical employers have accomplished for the same period."
Quotes
  • "Our Health Assistants are experts in your benefits plans, which means they can support members with any inquiry or issue related to benefits, eligibility, claims or billing. "
  • "Accolade Health Assistants relieve the stress of open enrollment for employees and HR Benefits Leaders, too. Health Assistants help members understand what’s new, what’s changing, how plans compare, election timeline requirements, and provide resources and enrollment guidance."