In fact, the co-founder and CEO of San Clemente-based medical group Crossover Health has embraced the concept and believes it is not necessarily a forced move, but rather a moment to “totally commit with ferocity” to a new trajectory.
A major pivot in strategy is something that Crossover Health has experienced not once or twice, but four times, since its beginning as a consumer-facing health clinic in the Aliso Viejo Town Center in 2010.
The company began catering to consumers, before switching to self-insured employers. It then launched near-site clinics for its employer clients. Subsequently, it expanded into telehealth and population-level monitoring ahead of the pandemic.
Throughout that period, Crossover Health amassed a membership north of 400,000 and grew its team to more than 1,000 physicians and support members.
Following a $168 million funding round last month, the company finally realized its vision of where it is today, to become a health and wellness lifestyle company concerned with helping its members maintain health and live their best lives.
It’s for that reason and more that Shreeve was honored as one of five winners of the Business Journal’s latest Excellence in Entrepreneurship Awards, held May 6.
Now, Crossover Health is on the path to generate $165 million to $180 million in annual revenue, according to industry reports.
Shreeve is an emergency medicine physician by training.
He is a graduate of the University of Utah School of Medicine and completed his emergency medicine residency training at the University of Arizona Health Science Center.
In 2002, he co-founded Carlsbad-based Medsphere Systems Corp., the first open-source electronic health record for healthcare enterprises. The company’s focus was based on the Veteran’s Administration software system and influenced by the idea that community hospital, health systems and networks of primary care clinics could benefit from greater utilization of data and connectivity.
After departing from Medsphere, Shreeve became interested in healthcare delivery, primary care and various models of care. He was particularly drawn to the idea of value-based care that encompasses a range of services such as primary care, physical medicine and behavioral health and, ultimately, prioritizes health outcomes.
This defies the traditional, albeit archaic, framework of transactional or visit-based care models that have been the norm for far too long, Shreeve said.
The Secret Sauce
Crossover Health found its sweet spot in large self-insured employers that pay for their workers’ healthcare.
The company not only provides clients “the opportunity to pay for services differently,” but also gives them the ability to “redesign benefits around this care model and the advantages it creates,” Shreeve said.
It’s nabbed major clients over the years including Facebook and LinkedIn. It gained national prominence last August when it announced a multi-year, multi-site agreement with Amazon, and has already created 17 health centers in five cities across the US for the ecommerce giant’s employees and family members.
While the company has a classic entrepreneurial story arc, Shreeve likes to joke that it’s “an overnight success story 10 years in the making.”
“I always attribute our success to our core values we’ve been able to instill in our company” as well as our “medical professionals and support staff that really buy into this idea that healthcare can and should be different,” he said.
“We’re fortunate we literally get to touch people and their lives, and help in some of their most challenging moments. I think people derive a lot of satisfaction from that. That’s part of our secret sauce.”
The company plans to strengthen its brand through a series of efforts over the next few years.
Crossover Health is doing so with the support of new investors, and experts in the industry, such as Deerfield, Perceptive Advisors, OrbiMed Advisors, Foresite Capital, Avidity Partners, SharesPost100 Fund, Irving Investors, and PFM Health Sciences.
Some initiatives include rolling out new health and fitness courses for members, in addition to a health passport that documents COVID status and vaccination records, among other features.
One of its main goals is also to more than double its user base and reach 1 million members in 3 years.
It plans to continue to do so through its Commercial Advantage model, which “hearkens to what has been successful in the Medicare market, but for the commercial market,” Shreeve said.
In addition to exploring additional opportunities with self-insured employers, the company is also looking favorable on relationships with large insurance carriers, which could offer services to members or employers that are clients.
It’s an exciting time as the company launches into hyper-growth mode, and plans to do so as an OC-based company with “some of the best surf breaks on the West Coast,” Shreeve said.