Clover Health shares surge on new Iowa Clinic contract

Clover Health shares surged in postmarket trading following the announcement that its subsidiary, Counterpart, secured a multi-year agreement with the Iowa Clinic, a prominent healthcare group.

This partnership signifies a strategic move for Clover Health, aiming to enhance healthcare delivery for Medicare patients in the Midwest.

The Iowa Clinic, known for being an independent, physician-owned multi-specialty group, will incorporate Counterpart Assistant into its operations. This AI-enabled technology is designed to seamlessly integrate with physicians' workflows, thereby potentially improving the efficiency and effectiveness of patient care.

The technology will be accessible to the Iowa Clinic's network partners across the Midwest, potentially impacting a broad patient base. Under the terms of the contract, Counterpart will be compensated with a per-member, per-month fee.

Moreover, the agreement includes potential incentive payments that Counterpart could receive upon achieving specific care management objectives. These incentives align with the overarching goal of improving patient outcomes and the quality of care provided.

The Iowa Clinic boasts a substantial presence in the healthcare sector, with more than 250 physicians and healthcare providers across over 40 specialties.

The primary facility is located in West Des Moines, with eight additional sites throughout the Des Moines metropolitan area and multiple outreach clinics in rural regions. Serving a population of approximately 1.1 million patients, the organization facilitates around 450,000 visits annually.

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Source: Investing.com