Chronic diseases are composed of some of the most costly, deadly, and prevalent diseases in America. One of these chronic diseases is cancer, a disease where approximately 39.5% of all men and women will be diagnosed at some point in their lifetime. Some of the biggest challenges for medical providers in dealing with cancer patients is the care coordination and medical management that is required throughout the care process. This is because these patients likely have multiple doctors, multiple medication prescriptions, and general diagnoses, test results, etc. are scattered throughout multiple providers and are not consolidated in a singular holistic unit/database.
This is ultimately why total care coordination is essential for cancer patient care; the coordination of care for these patients across the healthcare spectrum will help providers better navigate their patients, granting a better experience and more holistic care for patients. Unfortunately, full care coordination is scarcely used in healthcare facilities, and according to the American Cancer Society, 25% of cancer deaths could have been prevented with improved care coordination.
Enter Preveta-a software startup focused on care coordination technology for oncology care usage and collecting valuable cancer patient data for pharma companies to utilize. Preveta fulfills the need for total care coordination in cancer care while simultaneously solving the prevalent issues of missing patient data in the vast healthcare system.
Preveta uses artificial intelligence and an analytical engine to produce an IT application that is designed to enable team-based patient care, specifically for at-risk cancer patients that are cared for by multiple providers and are transitioned between different care settings. When working with patients on a case-by-case basis, Preveta’s system will actively identify when a patient’s medical data is missing and will then formulate a workplan to address it. Next, the software will notify the care coordinator/medical assistant will call or have a conversation with the patients in order to obtain the missing information or specific data point; this allows for Preveta to push a complete patient profile that helps clinicians optimize clinical decision making. Preveta’s system is able to address missing data via care navigation while also being able to collect data that is not currently collected.
Preveta operates in a two-sided market and aims to capture two different types of consumers. The first type of consumers are the providers and clinicians that will utilize Preveta’s care coordination software in their operations and healthcare systems. For the revenue stream in care coordination, Preveta will take a modest portion of the care coordination billings along with the rights to the patient data.
The other consumers are pharma companies and buyers who are interested in the cancer data and patient insights that are collected from Preveta’s software. In helping providers close the data loop and fill in the missing data pieces through data-focused care navigation, Preveta can then monetize these insights to pharma, systems, and other buyers.
Preveta first came onto the startup scene at Techstars as part of its Los Angeles Class of 2020. According to the Techstars blog, Preveta is “transforming cancer care by arming clinicians with data and insights to improve outcomes, and blazing a trail for providers to deliver value-based care.”
Through searching and investing in the next big thing, TSVC bases its investment thesis on three primary pillars: the market, the technology, and the team.
Given Preveta’s two-sided market mentioned above, each market presents itself with ample opportunity. The care coordination market was an estimated $1.64B in 2016. While not a large market in and of itself, Preveta is one of the few players in this emerging sector of the giant healthcare market and given the fragmented nature of the care coordination market, Preveta is presented with a good opportunity for sustained growth. On the other hand, the Data-as-a-Service for cancer is a significantly larger market and will be the main revenue driver for Preveta. The oncology informatics market has grown due to the increasing oncology EHRs, focus on the reduction of medical errors, and the rise in the cost of cancer. Additionally, the continued support from the government in improving cancer therapies and lowering medical costs will foster market growth. Pharma is willing to pay $3K per oncology patient record, as this will help them answer important questions such as “why patients stop taking their medications” and “how many patients are missing data for treatment identification.”
The product that Preveta is creating is innovative and pioneering in its own right. Traditionally, use of Electronic Health Records (EHR) have been critical to improving data capture. However, EHRs often lack the data and functionality for full coordination and communication among separate healthcare teams, a requirement that is crucial for cancer patient care, given the multitude of steps and different people involved in their care. Preveta solves these issues by identifying these missing data and supports providers through improved care navigation for their patients. EHRs lack the abilities of Preveta to capture social determinant insights from patients, automate care plans and patient workflows, and collect and preserve valuable patient data that are not commonly available.
Lastly, the primary team consists of its two co-founders: husband and wife, Victor and Shirley Lee. CEO Victor is a seasoned professional with plenty of experience in leadership roles and in entrepreneurship. He obtained his BS in Biomedical Engineering and MS in Computer Science at Johns Hopkins and since then, he has launched two corporate startups, worked as the VP of technology at Advantage Solution, and served as the Director of Engineering at Booz Allen Hamilton where he built a $7M ARR data practice for the firm. VP of Clinical Strategy Shirley is a full-time nurse practitioner and is the Director of Chronic Care Management at Skyline Urology, lending her expertise in patient care and extensive clinical knowledge.
All in all, Preveta presents itself with plenty of untapped potential in two sound markets, possesses a unique and versatile software, and a fundamentally sound entrepreneurial team. With that said, TSVC strongly believes in Preveta and is excited to see how it can revolutionize the landscape of cancer care in the future.
https://www.cancer.gov/about-cancer/understanding/statistics
https://www.techstars.com/newsroom/announcing-the-class-of-techstars-la-2020
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