Ethicos Health Revolutionizes Specialty Drug Coverage by Prioritizing Clinical Effectiveness
Nashville, TN – Ethicos Health has officially launched a groundbreaking platform aimed at addressing the escalating costs associated with specialty medications. The company’s innovative approach connects payment for these drugs directly to their real-world effectiveness, thereby allowing health plans and employers to manage expenses more efficiently. This launch follows the successful closing of a pre-seed financing round, attracting investments from notable firms such as Flare Capital Partners and SWL Healthcare Ventures.
Specialty medications are notorious for their high prices, often totaling tens of thousands to hundreds of thousands of dollars per patient annually. Many patients may not benefit from these costly therapies due to the highly specialized nature of these drugs. Ethicos Health seeks to mitigate this wastefulness by ensuring that both patients and payors only invest in clinically effective treatments, promising improved health outcomes and a significant reduction in specialty drug expenditure.
Mark McConnell, Co-Founder and CEO of Ethicos Health, emphasizes the company’s goal to align coverage decisions with the effectiveness of specialty medications on a per-patient basis. He critiques current practices that often rely on cumbersome administrative processes rather than clinical data.
“Previous attempts to streamline prior authorizations have only resulted in increased healthcare costs,” notes Mike Tudeen, co-founder of Two Sons Investments. Ethicos Health’s platform shifts the focus onto actual patient outcomes, allowing faster access for those on effective therapies and facilitating quicker transitions to alternatives for others.
As specialty medications now make up roughly 75% of the FDA pipeline, Ethicos Health believes that using clinical effectiveness as a basis for coverage decisions is vital for maintaining both access to essential treatments and the affordability of employer-sponsored healthcare programs.
In collaboration with transparent pharmacy benefit managers (PBMs) and health plans, Ethicos Health is pioneering new methods to manage costs associated with both GLP-1 and specialty drugs.
By transforming traditional prior authorization processes, Ethicos Health is setting a new standard for the healthcare industry, ultimately striving to deliver better patient outcomes while reducing unnecessary costs.
For more information, visit www.ethicoshealth.com or contact [email protected].
