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  • January 2022
  • Case
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Somatus: Value-Based Kidney Care (A)

By: Ariel D. Stern, Robert S. Huckman and Sarah Mehta
  • Format:Print
  • | Language:English
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Abstract

When Dr. Ikenna Okezie founded Somatus, a value-based kidney care provider, his goal had been nothing short of transforming kidney care delivery in the United States. Rather than relying on dialysis, a costly and intensive treatment for late-stage kidney disease, the Somatus model called for early identification of patients at high risk along with active management of the underlying conditions that accelerated kidney damage. But he had struggled to find health plans willing to take a chance on his unproven startup, especially in the highly concentrated dialysis treatment market. Thus, in 2017, Somatus agreed to manage traditional dialysis services for a group of hospitals in Virginia, focusing on improving the quality of care.
In 2018, Somatus won its first contract with a health plan, finally allowing the startup to implement its full care model. But the contract generated just 10% of Somatus’s revenues. Now, in December 2019, Okezie must decide whether to prioritize improving traditional dialysis services or continue to chase health plans willing to implement Somatus’s innovative kidney care model.

Keywords

Business Startups; Disruption; Entrepreneurship; Health; Health Care and Treatment; Health Disorders; Medical Specialties; Innovation and Invention; Disruptive Innovation; Management; Strategy; Business Strategy; Value; Value Creation; Health Industry; United States; Virginia

Citation

Stern, Ariel D., Robert S. Huckman, and Sarah Mehta. "Somatus: Value-Based Kidney Care (A)." Harvard Business School Case 622-009, January 2022.
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About The Authors

Ariel D. Stern

Technology and Operations Management
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Robert S. Huckman

Technology and Operations Management
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Related Work

    • January 2022
    • Faculty Research

    Somatus: Value-Based Kidney Care (B)

    By: Ariel D. Stern, Robert S. Huckman and Sarah Mehta
Related Work
  • Somatus: Value-Based Kidney Care (B) By: Ariel D. Stern, Robert S. Huckman and Sarah Mehta
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