The American health insurance giant that is closing its operations in Israel

After five years of activity, the American health insurance giant Alvans is expected to close its operations in Israel – as “Globes” learned. The development center, previously called Carlon and managed by Udi Gori, operated in the field of developing strategic digital health solutions for the insurance company, and employed about 40 employees with unique knowledge and training in the worlds of artificial intelligence and information processing in the medical field.

Besides developing technology in the field of digital health at the center itself, the development center was responsible for collaborations with Israeli start-up companies. Through the center, deep collaborations were created between Alvans and companies such as TytoCare, K Health, MDI Health, VIM Diagnostic Robotics and more – all companies dealing with the patient’s journey in the health system. In the case of some of these companies, Alvanes helped integrate its products into the American healthcare system, and especially for Taito, this is a significant relationship (which is expected to continue), which includes the installation of thousands of devices for the company’s insured.

In addition, the company recently conducted a nurturing and acceleration program for younger startups, to help them become more familiar with the needs of the American health care system.

The company’s stock lost 15% of its value in the last month

The loss of contact with the global insurance company is a significant loss for the Israeli digital health sector. The distance from the American market and the fact that most Israelis do not live as patients in it means that it is more difficult for them to understand the needs of the system. Collaborating with Alvans helped them to refine their value proposition, both in proving the value and in establishing relationships with the American healthcare system. The bright spot is that these employees will be able to go to the market and bring their knowledge from within the system to other companies, perhaps ones that will initiate on their own.

The reason for the closure of the activity is not clear, but it is probably not related to the political-security situation in Israel, or to disappointment with the quality of information and the information processing capabilities that can be found in Israel, since as far as is known, the activity of the center was extensive and successful. In addition to working with the start-up companies, Alvanes’ Israeli group built the company’s digital program for accompanying and managing chronic diseases, a support program after discharge from hospitals, and also published medical articles.

Apparently, the reason for the move is more related to the problems of the company itself. Alvanes is traded at a value of 95 billion dollars, and last month lost 15% of the value of its shares, following an unsuccessful report and a reduction in forecasts; This, following a decrease in the number of its subscribers coming from the government insurance Medicare.

Malvans stated in response to Globes’ question that: “As part of an overall move made by the company against the background of the changes in the health market, Alvans Health has made the difficult decision to close Carelon’s Israeli center. We thank and appreciate our employees in Israel for their dedicated work and the achievements they have brought, and are committed to supporting them throughout the process”.