Tom Vanderheyden was the executive in charge of Harken Health, an innovative startup from Minnetonka-based UnitedHealth Group that drowned last year in red ink. Subscribers in Chicago and Atlanta were drawn by the startup's offer of free wellness classes and "all you can eat" primary care with no copay at company-owned clinics, but Harken suffered like others in the individual market under the federal Affordable Care Act. Vanderheyden has now landed at Eagan-based Blue Cross and Blue Shield of Minnesota, where he's the executive responsible for diversified businesses.
Q: What did you learn from the experience at Harken Health?
A: Impacting primary care was extremely beneficial for the quality of care that people received, the downstream cost impact and satisfaction. So, we really hit everything that we had ever aspired to hit. Now, that's all on the positive side.
On the negative side, it was ... the bottom of the hill in the individual market, with respect to just medical cost behavior against premium. So, that was the mix. And you may recall United's announcement to depart [most of] the individual market, and the pressure that that ultimately applied.
Q: Was the problem that Harken Health drew sick patients due to a network of doctors and hospitals that was broader than other health plans?
A: We were the only [broad network plan] available on the exchange that year. ... [But] our financial performance wasn't vastly different than any other market participant in Chicago.
A reason that I'm at Blue Cross is the mission-based mind-set. They've been around for 84 years here. They certainly intend to be around for another 84 years. … [They have a] very balanced diversification approach and that's very attractive when you're mission-minded. So, you're willing to ... navigate your way through the down times, knowing it's the right thing for the market and for the experience that people have with your brand.
Q: Is the nonprofit world a better place to launch a startup venture?
