MINNEAPOLIS, MINNESOTA — Maybe I’ve been a journalist too long, but when a former top executive at one start-up starts a similar start-up and even poaches some of the talent, I smell trouble.
At least that’s what I assumed when Bloom Health Corp. recently announced it raised $5 million in Series A money. Not only does Bloom’s entire management team consist of RedBrick vets, the company’s stated raison d’etre is “to provide the expertise and tools to help employers figure out how much to spend on health care and equally important, how to control the costs over time.”
That sounds a lot like RedBrick Health. But alas, it appears that I’ve been too cynical and uninformed.
RedBrick CEO Kyle Rofling said the idea for Bloom originated out of internal discussions. With health care reform looming over Americans, RedBrick executives decided a new company was needed to help employers, workers and consumers understand how to navigate those changes, he said.
RedBrick’s core strength is health and wellness, helping people to become better health care consumers through specially designed incentive programs. Bloom’s business seems more focused on the financial side, advising people and companies on cost; for example, how to find the best plan out of the nonprofit “insurance exchanges” envisioned by Congress.
Um, okay. Guess I’ll understand more in time. Something also tells me Bloom and RedBrick are still trying to figure it out.
But this much is true: RedBrick and Bloom are partners, not adversaries. Rolfing is an adviser to Bloom and will most likely serve on its board of directors. Heck, they even share the same PR firm in Haberman Associates.
A Deep-dive Into Specialty Pharma
A specialty drug is a class of prescription medications used to treat complex, chronic or rare medical conditions. Although this classification was originally intended to define the treatment of rare, also termed “orphan” diseases, affecting fewer than 200,000 people in the US, more recently, specialty drugs have emerged as the cornerstone of treatment for chronic and complex diseases such as cancer, autoimmune conditions, diabetes, hepatitis C, and HIV/AIDS.
One thing they won’t share: investors. BlueCross BlueShield Ventures and Sandbox Industries funds Bloom while Kleiner Perkins Caufield & Byers, Highland Capital Partners, Fidelity Ventures, and Versant Ventures back RedBrick.
