Clover Health
{{Short description|U.S. healthcare company}}
{{Infobox company
| name = Clover Health Investments, Corp.
| logo = Clover Logo Green RGB.jpg
| logo_caption =
| logo_alt =
| type = Public
| traded_as = {{NASDAQ|CLOV}} (Class A)
| industry = Health care
| fate =
| predecessor =
| successor =
| founded = {{Start date and age|2014}}, in San Francisco, United States
| hq_location_city = Franklin, Tennessee
| hq_location_country = United States
| key_people = {{ubl|Andrew Toy (CEO)|Vivek Garipalli (executive chairperson)||Conrad Wai (CTO)}}
| area_served = Arizona, Georgia, Kansas, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, Vermont
| num_employees = 458
| num_employees_year = 2021
| website = {{URL|cloverhealth.com}}
| footnotes = {{cite web |last1=Chapman |first1=Lizette |title=Clover Health tops $1 billion value with Alphabet backing |url=https://www.bloomberg.com/news/articles/2017-05-10/clover-health-raises-130-million-valuing-it-at-1-2-billion |website=Bloomberg |access-date=August 18, 2021 |date=May 10, 2017}}{{Cite web|url=https://www.healthcarefinancenews.com/news/clover-health-co-founder-andrew-toy-take-reigns-ceo-2023|title=Clover Health co-founder Andrew Toy to take reins as CEO in 2023}}{{Cite web|url=https://www.beckerspayer.com/payer/clover-health-launches-livehealthy-rewards-program.html|title=Clover Health launches LiveHealthy Rewards Program}}{{Cite web|url=https://www.healthleadersmedia.com/payer/clover-health-appoints-conrad-wai-cto|title=Clover Health Appoints Conrad Wai as CTO}}{{cite web |title=Clover Health Investments Corp - Company Profile and News |url=https://www.bloomberg.com/profile/company/CLOV:US |website=Bloomberg |access-date=September 27, 2021 |language=en}}
}}
Clover Health Investments, Corp. is an American health care company founded in 2014. The company provides Medicare Advantage (MA) insurance plans and operates as a direct contracting entity with the U.S. government. The company manages care for Medicare beneficiaries in 11 states and started trading publicly on January 8, 2021.
History
Vivek Garipalli and Kris Gale co-founded Clover Health in 2014. Garipalli previously founded and operated a chain of hospitals in New Jersey called CarePoint Health.{{cite web |last1=Clark |first1=Kate |title=Alphabet-backed Medicare Advantage startup Clover Health raises $500M |url=https://techcrunch.com/2019/01/29/alphabet-backed-medicare-advantage-startup-clover-health-raises-500m/?guccounter=1 |website=TechCrunch |access-date=August 18, 2021 |date=January 29, 2019}}
More than 7,200 people were insured by Clover Health by 2015 and the company had more than 39,000 members by 2019, reporting revenues of $427.4 million and a net loss of $60.57 million.{{cite web |last1=Herman |first1=Bob |title=This Medicare Advantage startup isn't doing so hot |url=https://www.axios.com/this-medicare-advantage-startup-isnt-doing-so-hot-1513301537-0b8fe655-4c4c-4737-ad28-f4aeb5d7416e.html |website=Axios |access-date=July 20, 2021 |date=April 12, 2017}}{{cite web |last1=Reuter |first1=Elise |title=Medicare Advantage startup Clover Health plans big expansion |url=https://medcitynews.com/2020/07/medicare-advantage-startup-clover-health-plans-big-expansion/?rf=1 |website=MedCity News |access-date=July 20, 2021 |date=January 21, 2021}}
In 2016, the company was fined $106,095 for misleading its members about where they could receive care.{{cite web |last1=Small |first1=Leslie |title=CMS fines Clover Health for 'misleading' marketing tactics |url=https://www.fiercehealthcare.com/payer/cms-fines-clover-health-for-misleading-marketing-tactics |website=Fierce Healthcare |access-date=August 18, 2021 |language=en |date=June 1, 2016}} According to Bloomberg, Clover Health paid the fine and updated its marketing materials.{{cite web |last1=Chapman |first1=Lizette |title=Silicon Valley Is Trying to Reinvent Health Care, Starting in New Jersey |url=https://www.bloomberg.com/news/articles/2016-12-07/silicon-valley-is-trying-to-reinvent-health-care-starting-in-new-jersey |website=Bloomberg |access-date=July 20, 2021 |date=December 7, 2016}}
Gale left the company in 2017.{{cite web |last1=Truong |first1=Kevin |title=After rocky 2017, unicorn Clover Health charts path forward with new exec team |url=https://www.bizjournals.com/sanfrancisco/news/2018/08/28/unicorn-clover-health-executive-changes.html |website=San Francisco Business Times |access-date=September 27, 2021 |date=August 28, 2018}}{{cite web |last1=Small |first1=Leslie |title=Clover Health co-founder to step down from his post |url=https://www.fiercehealthcare.com/payer/clover-health-kris-gale-departure-medicare-advantage |website=Fierce Healthcare |access-date=September 27, 2021 |language=en |date=December 11, 2017}} Clover Health launched a home-based primary care program for homebound members in 2017 and partnered with Spiras Health and Upward Health in 2021 to expand the program, designed to reduce costs and hospitalizations.{{cite web |last1=Famakinwa |first1=Joyce |title=Clover Health Announces In-Home Primary Care Expansion, Becomes New Target for Reddit Traders |url=https://homehealthcarenews.com/2021/06/clover-health-announces-in-home-primary-care-expansion-becomes-new-target-for-reddit-traders/ |website=Home Health Care News |access-date=August 18, 2021 |date=June 9, 2021}}
In 2018, Clover Health partnered with MindMate, an app developer that makes games designed to maintain or improve cognitive function in older adults.{{cite web |last1=Takahashi |first1=Dean |title=How Clover Health partnered with MindMate app to help elderly with brain games |url=https://venturebeat.com/2018/12/25/how-clover-health-partnered-with-mindmate-app-to-help-elderly-with-brain-games/ |website=VentureBeat |access-date=July 20, 2021 |date=December 25, 2018}}
In 2019, Clover Health launched Clover Therapeutics, a biopharmaceutical company that uses data collected from Clover's plan members to research and develop therapies for chronic diseases related to age. The company partnered with Genentech to study the relationship between genetics and the risk of ocular disease.{{cite web |last1=Truong |first1=Kevin |title=Medicare Advantage startup Clover Health launches drug development arm |url=https://medcitynews.com/2019/07/medicare-advantage-startup-clover-health-launches-drug-development-arm/?rf=1 |website=MedCity News |access-date=July 20, 2021 |date=July 20, 2019}} In March 2019, the company said it needed to shift its focus to health care industry experience and reduced its staff by approximately 20 percent.{{cite web |last1=Farr |first1=Christina |title=Alphabet-backed Clover Health is cutting tech jobs after realizing it needs more health-care experts |url=https://www.cnbc.com/2019/03/27/clover-health-is-cutting-staff-to-make-room-for-more-health-experts.html |website=CNBC |access-date=August 18, 2021 |language=en |date=March 27, 2019}}{{cite web |last1=Reuter |first1=Elise |title=NJ legislators call for probe of insurance unicorn |url=https://medcitynews.com/2020/02/nj-legislators-call-for-probe-of-insurance-unicorn/ |website=MedCity News |access-date=August 18, 2021 |date=February 19, 2020}}
In February 2021, the short seller Hindenburg Research released a report alleging Clover Health was under investigation by the Department of Justice, and that it had failed to disclose the investigation to investors before going public.{{cite web |last1=Lin |first1=Connie |title=Clover Health under fire from Hindenburg, the research firm that took down Nikola |url=https://www.fastcompany.com/90601578/clover-health-under-fire-from-hindenburg-the-research-firm-that-took-down-nikola |website=Fast Company |access-date=July 20, 2021 |date=February 4, 2021}} Share prices fell by twelve percent following the release of the report.{{cite web |last1=Warner |first1=Bernhard |title=Following a bruising short-seller report, Clover Health discloses SEC investigation |url=https://fortune.com/2021/02/05/hindenburg-short-seller-clover-health-sec-investigation/ |website=Fortune |access-date=July 20, 2021 |date=February 5, 2021}} The company responded to the report and said it did not need to disclose the inquiry because it was determined to be immaterial in filings with the Securities and Exchange Commission by lawyers of Clover Health, the initial public offering underwriters, and third-party attorneys. Following the report, the SEC opened an investigation into Clover Health.{{cite web |last1=Kelly |first1=Kate |title=SPACs Went Up, Then Down, but They're Not Out |url=https://www.nytimes.com/2021/08/21/business/dealbook/spac-market-future.html |website=The New York Times |access-date=September 27, 2021 |date=August 21, 2021}} In April, Clover Health began working as a direct contracting entity with CMS, which allows the company to negotiate contracts with doctors treating patients using fee-for-service Medicare options. About half of the company's total beneficiaries were added through this contracting service. In June, Clover Health became the target of traders as a “meme stock”, causing share prices to fluctuate.{{cite web |last1=Hirtenstein |first1=Anna |title=Clover Health's Stock Price Surges After Becoming New Reddit Darling |url=https://www.wsj.com/articles/clover-healths-stock-price-surges-after-becoming-new-reddit-darling-11623152190 |website=Wall Street Journal |access-date=July 21, 2021 |date=June 8, 2021}} Share prices rose 20% in one day after the company cautioned investors against purchasing shares due to being part of a short squeeze on hype from Reddit retail investors.{{cite web |last1=Dailey |first1=Natasha |title=Clover Health jumps 20% as Redditors cheer company's acknowledgement that the stock is the target of a short squeeze |url=https://markets.businessinsider.com/news/stocks/clover-health-stock-price-jumps-redditor-rally-chamath-palihapitiya-2021-6 |website=Business Insider |access-date=July 20, 2021 |date=June 22, 2021}}
In 2023, Andrew Toy became CEO after Vivek Garipalli transitioned out of the role at the end of 2022. Garipalli stayed on with the company as its executive chairperson.{{cite web |last1=Lagasse |first1=Jeff |title=Clover Health co-founder Andrew Toy to take reins as CEO in 2023 |url=https://www.healthcarefinancenews.com/news/clover-health-co-founder-andrew-toy-take-reigns-ceo-2023 |website=Healthcare Finance |access-date=February 8, 2023 |date=August 9, 2022}}
=Funding and IPO=
From 2015 to 2017, Clover Health ran a series of venture capital funding rounds, receiving funding from First Round Capital,{{cite web |last1=Lynley |first1=Matthew |title=Clover Health, A Data-Driven Health Insurance Startup, Raises $100M |url=https://techcrunch.com/2015/09/17/clover-health-a-data-driven-health-insurance-startup-raises-100m/#.opbaqx:uCAv |website=TechCrunch |access-date=July 21, 2021 |date=September 17, 2015}} Sequoia Capital,{{cite web |last1=Lynley |first1=Matthew |title=Data-Driven Health Insurance Provider Clover Health Raises Another $35M |url=https://techcrunch.com/2015/12/16/data-driven-health-insurance-provider-clover-health-raises-another-35m/ |website=TechCrunch |access-date=July 21, 2021 |date=December 16, 2015}} and Greenoaks Capital.{{cite web |last1=Rauber |first1=Chris |title=San Francisco health insurance startup nabs $160 million in Series C funding |url=https://www.bizjournals.com/sanfrancisco/blog/2016/05/clover-health-insurance-funding.html |website=San Francisco Business Journals |access-date=July 21, 2021 |date=May 20, 2016}} A Series D funding round in 2017 included support from Alphabet Inc's investment company GV and led to Clover Health being valued at more than $1.2 billion and achieving “unicorn” status.
In October 2020, the company announced that it had reached a $3.7 billion deal with Chamath Palihapitiya and would go public through a merger with a special-purpose acquisition company. Clover Health began trading on the NASDAQ under the ticker CLOV on January 8, 2021. The company ended its first day on the public market with a value of about $7 billion.{{cite web |last1=Schubarth |first1=Cromwell |title=Clover Health goes public after merger with SPAC led by Chamath Palihapitiya |url=https://www.bizjournals.com/sanjose/news/2021/01/08/clover-health-ready-to-start-trading-on-nasdaq.html |website=Silicon Valley Business Journal |access-date=July 20, 2021 |date=January 8, 2021}}
=Short seller report and "meme stock" status=
Less than a month after it began trading, Clover Health was the subject of a "blistering" short seller report by research firm Hindenburg Research{{Cite web |title=Short seller Hindenburg takes on a celebrity-backed health insurer, triggering a retail investor reckoning |url=https://fortune.com/2021/02/04/short-clover-clov-stock-chamath-palihapitiya-nikola-evs/ |access-date=2022-03-23 |website=Fortune |language=en}} that drove its stock down by 15%. Responding the following day, the company disclosed it was under investigation by the U.S. Securities and Exchange Commission.{{Cite web |title=Following a bruising short-seller report, Clover Health discloses SEC investigation |url=https://fortune.com/2021/02/05/hindenburg-short-seller-clover-health-sec-investigation/ |access-date=2022-03-23 |website=Fortune |language=en}} Later in 2021, attracted by the significant short interest, Clover Health became a meme stock and its stock price rose significantly;{{Cite web |last=Carmichael |first=Taylor |date=2021-06-27 |title=Why Is Clover Health a Meme Stock Now? |url=https://www.fool.com/investing/2021/06/27/why-is-clover-health-a-meme-stock-now/ |access-date=2022-03-23 |website=The Motley Fool |language=en}} before falling back; as of June 2022 the share price remains significantly below where it went public.
Services
Clover Health offers Medicare Advantage plans in "largely rural or underserved areas".{{cite web |last1=Hirsch |first1=Lauren |title=Clover Health Is Acquired in a $3.7 Billion Deal |url=https://www.nytimes.com/2020/10/06/business/dealbook/clover-health-deal-chamath-palihapitiya.html |website=The New York Times |access-date=August 18, 2021 |date=October 6, 2020}} The company is led by chief executive officer Andrew Toy. As of August 2021, Clover Health had 129,000 beneficiaries, split between its Medicare Advantage plans and direct contracting coverage.{{cite web |last1=Moran |first1=Nick |title=Clover Health releases Q2 results: 6 things to know |url=https://www.beckershospitalreview.com/payer-issues/clover-health-releases-q2-results-6-things-to-know.html |website=Becker's Hospital Review |access-date=August 18, 2021 |date=August 12, 2021}} The beneficiaries are located in 11 states: Arizona, Georgia, Kansas, New Jersey, New York, Pennsylvania, Rhode Island, South Carolina, Tennessee, Texas, and Vermont.{{cite web |last1=Rinker |first1=Brian |title=After SPAC merger, Clover Health president eyes membership growth this year |url=https://www.bizjournals.com/sanfrancisco/news/2021/01/08/clover-health-debuts-on-the-nasdaq-growth.html |website=San Francisco Business Times |access-date=July 20, 2021 |date=January 8, 2021}}{{cite web |title=Notice of Direct Contracting Entities Participating in Performance Year 2021 of the Global and Professional Direct Contracting (GPDC) Model |url=https://innovation.cms.gov/media/document/gpdc-model-participant-announcement |website=Centers for Medicare & Medicaid Services |access-date=August 18, 2021 |date=April 8, 2021}}
Clover Health created a machine learning software platform called the Clover Assistant to offer care recommendations to primary care physicians and alert them about medical events, such as if a patient has picked up their prescription.{{cite web |last1=Reuter |first1=Elise |title=Clover's growth projections reveal direct contracting pivot |url=https://medcitynews.com/2020/10/clovers-growth-projections-reveal-direct-contracting-pivot/ |website=MedCity News |access-date=August 18, 2021 |date=October 9, 2020}} The platform aggregates health information and uses it with the machine learning process to deliver recommendations to care providers.{{cite web |title=Top 25 Innovators - Andrew Toy |url=https://www.modernhealthcare.com/awards/2019-top-25-innovators-andrew-toy |website=Modern Healthcare |access-date=July 21, 2020 |language=en |date=August 16, 2019}}{{cite web |last1=Winck |first1=Ben |title=Social Capital SPAC led by billionaire Chamath Palihapitiya will merge with Clover Health in $3.7 billion deal |url=https://markets.businessinsider.com/news/stocks/social-capital-spac-ipoc-clover-health-deal-chamath-palihapitiya-merger-2020-10-1029652323# |website=Business Insider |access-date=August 18, 2021 |language=en |date=October 6, 2020}}
Operations
The corporate headquarters are in Franklin, Tennessee, and the company has additional offices in San Francisco, California, Jersey City, New Jersey, and Hong Kong.{{cite web |title=Registration Statement on Form S-4 |url=https://www.sec.gov/Archives/edgar/data/1801170/000119312520272347/d69158ds4.htm#toc |website=Securities and Exchange Commission |access-date=July 20, 2021 |date=October 20, 2020}}{{cite web |title=Clover Health Careers |url=https://www.cloverhealth.com/en/about-us/careers |website=Clover Health |access-date=August 18, 2021}}
Chelsea Clinton and Demetrios L. Kouzoukas, the former Director of the Center for Medicare and Principal Deputy Administrator of the Center for Medicare and Medicaid Services (CMS) during the Trump administration, are both members of Clover Health's board of directors.{{cite web |last1=Hartnett |first1=Kara |title=Clover Health taps former CMS official for board |url=https://www.nashvillepost.com/business/health_care/clover-health-taps-former-cms-official-for-board/article_51803ebc-e162-596b-a372-d7907d6abe7a.html |website=Nashville Post |access-date=September 27, 2021 |language=en |date=April 15, 2021}}{{cite web |last1=Khemlani |first1=Anjalee |title=Clover appoints Trump official, industry vet to board amid market struggles, Medicare push |url=https://finance.yahoo.com/news/clover-appoints-trump-health-official-to-board-132343503.html |website=Yahoo! Finance |access-date=July 20, 2021 |date=April 15, 2021}}
References
{{Reflist}}
External links
- {{official|https://cloverhealth.com}}
{{Finance links
| name = Clover Health Investments, Corp.
| symbol = CLOV
| reuters = CLOV.O
| bloomberg = CLOV:US
| sec_cik = 1801170
| yahoo = CLOV
| google = CLOV
}}
{{Nashville companies}}
{{authority control|state=expanded}}
Category:Healthcare software companies
Category:Health care companies established in 2014
Category:American companies established in 2014
Category:Software companies established in 2014