Oncology Ventures: Investment in Daymark + Food Critic Comedy
Investing in data-driven innovation in oncology
Thesis for Oncology Ventures’ Investment in Daymark Health
Current State of Value-Based Cancer Care
Cancer costs are rising at an unsustainable rate.
Oncology is a $210B market, projected to exceed $350B by 2030, and remains the fastest-growing therapeutic area in healthcare. Cancer is employers’ top driver of healthcare costs. 42% of patients exhaust their entire life savings within two years of a cancer diagnosis.
Specialty oncology care is urgently shifting toward value-based models, driven by payer demand for cost control and improved clinical outcomes. While the shift toward value-based care (VBC) is accelerating, most oncology providers lack the infrastructure, financial incentives or clinical bandwidth to manage patients comprehensively across the care continuum.
This creates a widening gap between payer expectations and provider capacity.
Two million people are diagnosed with cancer each year in the U.S., putting immense pressure on an already strained system. While treatment still mainly happens inside the four walls of a clinic, patients spend over 8,500 hours per year outside of the clinic. They are left navigating pain and symptoms on their own, which contributes to a host of unnecessary complications.
The opportunity to fundamentally improve these challenges is within our reach.
Over 40% of cancer-related emergency room visits and hospital admissions are considered preventable. And, broader, proven models for high-value cancer care already exist. A few notable examples of localized, successful steps into VBC…
Through lay-navigators and focus on advanced care planning, a program at Stanford proved a 62% reduction in all acute spending, resulting in $9k in savings (in 6 months) and a ~23% reduction in total cost of care
Through community workers, health navigators and shared savings with Minnesota Oncology, BCBS of Minnesota proved a 10% total cost of care reduction with a significant decrease in emergency visits and hospital admissions
Huntsman Cancer Institute initiated a nurse practitioner led, in-home symptom management program, which led to a 55% decrease in 30-day readmissions, 45% reduction in emergency room visits and lowered total healthcare costs by 47%
Cleveland Clinic invested in navigation teams and data infrastructure, which led to a 30% increase in patients seen and a 7% rise in revenue
Daymark Health is Bringing VBC to Cancer at Scale
Daymark Health partners with health plans to provide in-home and virtual wraparound care to patients with cancer, addressing the clinical, mental health and social needs that matter most. With proven savings and deep clinical capabilities, Daymark extends oncology care beyond the clinic and ensures cost-effective, patient-centered care delivery.
Daymark’s tech-enabled care model offers 2x engagement (than digital only solutions) and savings, while seamlessly integrating with current utilization and care management initiatives. Daymark establishes real-time data flows with disparate data sources (e.g., claims, EMRs, prior authorizations) and applies proprietary analytics with underutilized data elements (e.g., imaging, labs, biopsy) to identify and risk stratify members.
The Company's community-based team of nurse practitioners, nurses, social workers and health partners works in tandem with a patient's oncologist and primary care provider. Their clinical team are experts at breaking down barriers to care (e.g. connecting members to relevant transportation, financial assistance and housing support).
Daymark assumes oncology risk when the oncologist is the primary coordinator of care. The value proposition to Payers is obvious - they see guaranteed savings and fewer avoidable admissions, leading to better care and outcomes for patients.
Oncology risk contracts are complicated. The best solution is one that can serve diverse regions, with minimal carve-outs. Some examples to make this possible include following high-value care pathways (e.g., NCCN guidelines), and optimizing biosimilars and drug pricing arbitrage opportunities.
Further, in this model, providers benefit from shared savings, extended teams and no downside risk. Dynamic provider partnerships create a stepping-stone for any practice to participate in high-value care, including integrated health systems and academic medical centers, where 2/3 of oncology spend happens.
Alongside CEO Dr. Justin Bekelman, who was the founding Director of the Penn Center for Cancer Care Innovation, Daymark has assembled an exceptional team of oncology and value-based care leaders. Roy Beveridge, former Chief Medical Officer of Humana and U.S. Oncology, joined Daymark as Executive Board Chair, and Ezekiel Emanuel, an architect of the Affordable Care Act, is their Clinical Advisory Board Chair.
Oncology Ventures is proud to partner with the Daymark team, and co-invest with Healthcare Foundry and Maverick Ventures, as they build the infrastructure for value-based oncology at scale.
Comedy!
I’ve always liked the restaurant scene. Not to use this platform as a time to brag, but… growing up I was a food critic for my high school’s newspaper. The sheer undeserved confidence. I was 15 years old and had been out to dinner maybe four times. Three of them were to our local TGI Fridays. The 4th was an Applebee’s, but my Aunt ordered for the table, so that shouldn’t really count.
I had no palette, no taste - but I had thoughts. And that’s what really matters. Nothing says future venture capitalist like that level of unwarranted self-belief. I’m sitting there in my Abercrombie & Fitch hoodie writing about ambiance. What ambiance? We were in a strip mall next to a PetSmart.
I took it so seriously. I brought a notebook to dinner. Most food critics naturally try to keep their identity a secret, to ensure an unbiased experience. I went exactly the opposite direction - bring over that free dessert and special treatment. I’m just here scribbling random thoughts “Service: 3/5. Waiter’s name was Brian. Seems like a pretty nice guy.”
I felt like those people who write restaurant reviews on Yelp. Just have absolutely no business being there. My favorite are the “1 Star” reviews on Yelp, because most of the time those ratings have nothing to do with the actual restaurant. I just read one for my local Italian spot. He gave it 1 star with the caption “The pasta was okay. But, my girlfriend broke up with me here. So, I don’t think I’m going back.”
Asks
If you enjoy this newsletter, please forward to one person who you think would like it too. If you don’t like it and unsubscribe, please send this to 2 people to balance it out :)
We are always on the lookout for more data-driven cancer start-ups