Digital Health Company Babylon Shutters U.S. Business, Lays Off Employees

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The troubled virtual care firm, which has been looking for a buyer, told the Texas Workforce Commission it would “permanently close” its Austin headquarters as of August 7.

“business combination” including Swiss-based digital therapeutics company MindMaze and Babylon creditor AlbaCore Capital LLP would “not proceed.” Babylon said it was “focused on continuing the day to day operations of its UK business,” but would be “exiting its core US business and plans to safely transition its US members to other providers.” The press release gave no indication of timeline, how many total U.S. employees were affected and who would serve Babylon’s existing U.S. patients.

When Linda, a patient in New York who requested her last name not be used for privacy reasons, went to login for a scheduled therapy appointment today, she received the following message on her Babylon app, according to a screenshot. “Babylon’s clinical services and appointments are no longer available. For details about your health plan benefits and to find a new provider, contact your health plan.

It appears that Babylon is putting the responsibility of the “transition” on patients and their insurance companies. An email Linda received from Babylon at 11:02 am ET said: “We know you may have questions about this change. Your health plan’s dedicated Member Services team can assist you. You can find your health plan's contact information on your ID card.”

In the U.S. market, Babylon entered into value-based contracts with insurers, meaning it would get a lump payment to take care of each patient’s needs and get to keep any “savings” from delivering care at lower cost. But this also meant the company was on the hook for overages. As of December 2022, Babylon had around 261,000 U.S. value-based care patients, according to its

 

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