It’s Time for Clover Health to Think Outside the Box

CLOV Stock - It’s Time for Clover Health to Think Outside the Box

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Clover Health (NASDAQ:CLOV) continues its downward spiral as we near the dog days of summer. CLOV stock has lost 61% of its value in the past six months alone. If the company wants to climb out from penny stock status, it will have to think outside of the box. One way to do that is to work with its nearly 130,000 lives under management — either through its Medicare Advantage plans or Direct Contracting — to monetize their health data. 

A recent guest contribution in Forbes from Mark Gorski, the chief executive officer of Sports Data Labs, a company that specializes in monetizing sensor-based health data, suggested that consumers soon will be able to benefit financially from their health data. Why not now? 

Clover Health has the technology to ensure their members’ health data remains secure while finding monetization opportunities in return for a small fee. The member would get a cut on their insurance premiums without having to do anything except give consent for the company to make their health data available to appropriate third parties. 

It is a win/win situation. Yes, selling your health data seems scary, but the reality is, as Gorski states, health systems are already doing it. So, cutting your customers in on the action seems like a move to retain customers over the long run. 

“While a market for health data already exists, the reality is that the individuals who actually generate the health data are not in control of their own information. As a result, they have no way to benefit personally from the monetization of that data,” Gorski told Forbes. 

Perhaps someday we’ll all be able to market our health data for financial gain. Until then, I don’t see why Clover Health couldn’t harness Clover Assist, its proprietary software platform, to monetize this health data for the benefit of its members. This could be in terms of cheaper insurance and contributing to future medical research and disease prevention. 

The monetization of the consumer’s health data seems like the wave of the future. Clover Health ought to ride that wave.

On the date of publication, Will Ashworth did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the Publishing Guidelines.

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