Clover has also missed internal financial targets, is actually reckoning with mounting losses along with also also has seen its Medicare star rating dip coming from 3.5 out of 5 to 3, which is actually a problem because lower scores result in reduced payments coming from the government.
yet the company is actually pushing ahead with some brand-new hires along with also also geographic expansion.
In September, of which brought on Varsha Rao, the former head of operations at Airbnb, as COO. along with also also the company is actually beginning to serve parts of Georgia, Texas along with also also Pennsylvania in early 2018, after thus far being unable to operate outside of brand-new Jersey.
The big-name venture capitalists, who have poured hundreds of millions of dollars into Clover, have plenty at stake inside company’s success, as does board member Chelsea Clinton. They’re all buying into an “entirely brand-new approach to health insurance,” as Clover proclaims on its website.
Sequoia Capital along with also also First Round Capital are among Clover’s top backers. In May, Alphabet’s venture arm GV joined a $130 million financing round of which put Clover inside billion-dollar start-up club. along with also also here’s what an investor at Greenoaks Capital said about Clover in May 2016, after leading a $0 million financing round.
“By combining a data-driven approach to improving health outcomes along with also also a genuine desire to delight its members, Clover offers a Medicare Advantage plan of which creates a truly positive impact on member health, while delivering a superior member experience along with also also value of which continues to get better along with also also better at a rapid pace.”
Clover was commenced in 2012 by Vivek Garipalli, who previously co-founded a brand-new Jersey hospital chain called CarePoint Health.
At CarePoint, Garipalli’s style involved cutting ties with large private insurers to make these hospitals out of network for most plans. of which meant insurers generally ended up paying higher rates, a scheme of which Aetna’s former head of national networks described as “taking advantage of members who seek emergency services.”
In 2013, a brand-new York Times investigation revealed of which Bayonne, one of the CarePoint medical centers, was the most expensive hospital in America, charging the highest amounts inside country for nearly one-quarter of the most common hospital treatments.
Those close to Garipalli say he knows the industry along with also also has the entrepreneurial drive necessary to battle entrenched interests. First Round’s Josh Kopelman was so struck by Garipalli of which in 2015, his early-stage firm wrote a $4 million check to Clover, the biggest initial investment of which had ever made.