Alphabet's healthcare arm Verily is in the midst of weighing whether to enter the population health arena through a partnership with a payer, CNBC reports.
Here's what you should know:
1. Alphabet has made several hires and partnerships to boost its Verily unit.
2. The healthcare arm is in the midst of weighing whether to enter into population health with payer support.
3. Verily weighed a similar proposal in 2016 with Oscar Health to manage care for Rhode Island residents on Medicaid, but ultimately withdrew the proposal.
4. CNBC reports Verily would have to significantly lower costs from existing market prices to make money in the market. "If costs don't come down, it might make no money from that contract."
5. Yet, the population health market is booming and offers vast financial incentive. Market spending is between $20 and $25 billion and there's an upside of more than $1 trillion, said Ari Gottlieb, research group director at PwC, to CNBC.