3Fivetwo Healthcare

3Fivetwo Healthcare Acquisition Signals Strong Demand for Value-Based Cancer Care

Introduction

On 3rd, August 2023, Amgen (NASDAQ: AMGN) announced its plan to acquire 3Fivetwo, a privately-held company pioneering value-based cancer care models, for $1.3 billion upfront, and up to $1.1 billion in milestones. The acquisition is a significant move for Amgen, as it positions the company as a leader in the rapidly growing field of value-based oncology.

Value-Based Healthcare: A Growing Trend

Value-based healthcare (VBHC) is a healthcare delivery model that focuses on delivering high-quality, cost-effective care. In VBHC models, providers are rewarded for the value of the care they provide, rather than the volume of services they offer.

This model has gained significant traction in recent years, due to its potential to reduce healthcare costs and improve patient outcomes. According to a recent study by the National Bureau of Economic Research, VBHC models can reduce healthcare spending by up to 10% without compromising quality.

3Fivetwo's Value-Based Oncology Model

3Fivetwo has developed a unique value-based oncology model that has shown promising results. The model focuses on improving the quality and efficiency of cancer care, and has been shown to reduce costs and improve patient outcomes.

One of the key elements of 3Fivetwo's model is its use of data and analytics. The company collects data from a variety of sources, including electronic health records, patient surveys, and claims data.

This data is used to identify opportunities to improve care, and to develop personalized treatment plans for patients. 3Fivetwo also uses data to track patient outcomes, and to ensure that patients are receiving the highest quality of care.

Benefits of Value-Based Cancer Care

There are a number of benefits to value-based cancer care. These include:

• Reduced costs
• Improved patient outcomes
• Increased patient satisfaction
• More efficient use of healthcare resources

Value-based cancer care is a win-win for all stakeholders. Patients receive higher quality care at a lower cost, providers are rewarded for delivering value, and payers see reduced costs.

Conclusion

The acquisition of 3Fivetwo by Amgen is a significant development in the field of value-based cancer care. It signals strong demand for this type of care, and it positions Amgen as a leader in this growing market.

Value-based cancer care has the potential to transform the way cancer is treated, by reducing costs, improving patient outcomes, and increasing patient satisfaction.