15 connected strategy in the healthcare industry seen as a full-service diabetes platform, the company may want to consider expanding its service offerings to deepen its connected relationships with customers. virta health Company Overview & Evolution Virta Health was founded in 2014 with the goal of reversing type 2 diabetes in 100 mil- lion people by 2025 using a tech-enabled platform focused on nutritional ketosis.29 Since its early years, Virta has focused on providing diabetes patients with the care support and tools to reverse their condition and gradually stop medication treatment through a tech-enabled platform centered around individualized nutritional ketosis therapy (sus- tainable carbohydrate restriction).30 In terms of its service offerings, Virta aims to create a “virtual” diabetes reversal clinic through a mobile phone application. More specifically, patients manually enter key biomarker data into mobile applications such as blood pres- sure, weight, blood glucose levels (patients are sent glucose meters and a connected scale) and those uploaded metrics are monitored by a supervising physician to provide consultations/recommendations for medication adjustments.31 Patients are paired with health coaches to provide daily support to patients and answer any questions about the nutritional ketosis diet on-demand through the app.31 Virta provides patients with access to educational resources and specialized meal plans to help them stay on this specific diet.31 Additionally, patients are able to join a private patient community for discussion and support.31 In terms of revenue, from its founding, Virta has pursued two streams of revenue: di- rect-to-consumer model and a B2B model focused on self-insured employers and health plans (providing Virta as a covered benefit to employees/patients). The majority of its revenue comes from its B2B channels and a minority comes from patients who pay out- of-pocket (one-time $500 upfront fee and then $370 per month for the first year and $199 per month for subsequent years). Similar to Omada, Virta announced that it would have an outcomes-based billing model for its enterprise clients. In 2018, Virta changed its revenue model so that health plans and employers will pay Virta a fee only if the pa- tient is sufficiently engaged with its program after one month and the second payment comes after a year, only if patients lower their A1C levels by certain metrics.32 29 https://www.virtahealth.com/about 30 https://www.virtahealth.com/howitworks 31 https://www.statnews.com/2018/11/14/a-startup-for-diabetes-patients-will-only-get-paid-if-the-service-works/ 32 https://www.virtahealth.com/blog/rapid-growth-new-executives-customers-industry-validation