Crossover Health expands into digital health delivery with Sherpaa acquisition

Crossover Health already offers onsite health clinics for large self-funded employers including Apple, Microsoft, Facebook and LinkedIn.

Now the San Clemente, California-based company is looking to expand into the digital realm with an acquisition of the virtual primary care technology platform developed by Sherpaa Health.

With the acquisition, company officials said they plan to help employers expand digital health offerings their onsite workforces and remote workers and allow them to engage with health providers on a more regular basis.

"This is not an add-on solution. This is creating a seamless physical and digital experience we haven't seen in the market," said Rich Patragnoni, M.D., chief medical officer of Crossover Health, told FierceHealthcare. 

Terms of the deal were not disclosed.

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Crossover was founded in 2010 as a solution for self-funded employers to help curb healthcare costs by ensuring their workforce received well-coordinated care aimed at improving outcomes and reducing costs.

The company said they have a roster of 25 clients, including 23 Fortune 500 companies and eight of the largest companies in the world. They most recently opened an 8,000-square-foot health center in the SOMA district of San Francisco in October. Beyond primary care services, Crossover also provides physical therapy, behavioral health services, acupuncture, massage, chiropractic care, vision care and health coaching.

They serve more than 180,000 employees and expect to serve more than 200,000 by the end of the year, Patragnoni said. But with the addition of the digital platform, they could see that number multiplied by a factor of three since they'll be able to reach remote workers. 

In Crossover's published outcomes studies and found over a 24-month period, employers saw a 20% decrease in spending for employees that engaged with Crossover including a 20% improvement in their pharmaceutical spend, largely through common swaps to generic alternatives. Patragoni said they've observed decreases in imaging and surgery costs among engaged employees as well but declined to disclose those results prior to publication. 

In general, Patragoni said, employers have seen between 50% and 90% engagement of their employees with Crossover's services depending on how long they've worked with the company.