Jawbone shutting its doors

I put their chances at nearly nil.

Healthcare is a world where you cannot use puffery. You cannot make a claim without evidence to prove the claim. And in this particular instance, jawbone’s product does not and likely will not get direct reimbursement. So the bottom line is jawbone’s product is an expense to all healthcare providers. Even if jawbone gets data to prove their product will reduce patient recovery time in a hip replacement, if the hospital doesn’t get reimbursed, what is their motivation to buy it? They get paid for the rehab no matter what. And the bean counters don’t care about better outcomes.

Jawbone’s best chance is to prove their device reduces readmissions (patient gets discharged, comes back within 30 days with the same problem). CMS penalizes hospitals with a readmission rate that is too high. That penalty is much higher than the cost of the jawbone product and it is easy to make the roi. Getting the evidence to prove a lower readmission rate will take them 2-3 years. I hope they are well funded. Oh, if they repeal Obamacare, the readmission penalty will also be repealed as it was a part of that law. Jawbone is dead in the water at that point.