Losing The War With Chronic Disease, 37% of Hospitals Unprofitable, Clover Health's $70 Million in EBITDA

Hey all,

Happy Monday! If you want a super depressing reality check then read the NY Times article on West Virginia nurse Sam Runyon. It’s a reminder how broken our food and health systems really are. 

Jacob Brody (Co-Founder & CEO, ZorroRX)

(New York Times) She’s a Foot Soldier in America’s Losing War With Chronic Disease

In Mingo County, West Virginia, where life expectancy is plummeting, nurse Sam Runyon battles the harsh realities of chronic disease, poverty, and food insecurity among her patients. Her work highlights the systemic barriers—limited healthcare access, processed food dependency, and economic hardship—that make managing conditions like diabetes and heart disease nearly impossible. Despite her efforts, many patients continue to deteriorate, exposing the broader failures of America’s public health system.Full Article

(Becker’s Healthcare) 37% of Hospitals Still Losing Money

Despite efforts to recover from the COVID-19 pandemic, 37% of U.S. hospitals are still operating at a loss, according to Kaufman Hall. Hospitals have been cutting costs, reducing reliance on contract labor, and adopting AI-driven technologies to improve efficiency, but rising expenses, including inflation and salaries, continue to outpace reimbursement growth. While the percentage of hospitals losing money has decreased from 40% last year, financial challenges persist, leading to layoffs, service cuts, and outsourcing. High-performing hospitals are widening the gap by investing in workforce development and technology, while others struggle to stay afloat. Hospital leaders are focusing on increasing revenue, improving patient flow, and expanding value-based care to navigate financial pressures in 2025. Full Article

(Fierce Healthcare) Clover Health Nets $70M Adjusted EBITDA 

Clover Health reported a significant financial turnaround with a $70 million adjusted EBITDA for 2024, marking a $112 million year-over-year improvement, but missed revenue expectations by 2%, leading to a 5% stock drop. While its insurance benefits ratio improved to 82.8%, quarterly insurance revenue stood at $331 million, and full-year revenue projections for 2025 are set at $1.8 billion. The company anticipates a 30% increase in Medicare Advantage membership, largely from plan switchers, but warns that loss ratios may rise in the short term. CEO Andrew Toy emphasized Clover’s strategic positioning, while CFO Peter Kuipers highlighted the insurer’s ability to equip physicians with better health data. The company is also looking to expand its AI-driven Counterpart Health platform but has not provided a timeline for its financial impact. Full Article