US healthcare payers are using corporate venture funds to bulk up on data and analytics start-ups. The move points to a major industry shift as payers prepare to compete with nontraditional data-savvy challengers such as Amazon and Oscar Health. Recent deals include Optum’s investment in Mindstrong, as well as the joint Humana and Cigna investment in Omada.
Reynold Strossen is a partner with Bain’s Healthcare practice and Caitlin Dowling is a manager with the firm’s Healthcare practice. Reynold and Caitlin are based in Bain’s New York office.