A Louisville-based company that analyzes health care data is transforming an old downtown warehouse into a state-of-the-art office and meeting space to accommodate growth.
RowdMap is renovating nearly 8,000 square feet of warehouse space at 708 Magazine St.
Chief Scientific Officer Josh Rosenthal, who co-founded the business, declined to provide details on the investment but told Insider that it is “very significant.”
The space, which will feature 35-foot ceilings and 60-inch touch screens, will house office meeting rooms and areas to host clients and conferences.
RowdMap helps physician groups, hospital systems and other health care players reduce low-value care by analyzing data that is publicly available and that clients provide. Low-value care can include an expensive procedure for back pain when much less expensive physical therapy may have the same long-term patient outcome.
Health care providers traditionally have benefited from steering patients toward high-cost procedures because they got paid per service. A more expensive service meant more dollars in their pockets. Now that the industry is shifting toward pay-for-value care, in which providers get paid based on patient outcome, identifying care that is expensive but provides little value is critical. RowdMap estimates that more than $850 billion of care provided annually in the U.S. can be categorized as low-value.
The company has been on a growth tear, adding staff, gaining clients and diversifying among the kinds of clients it is attracting, from health care providers such as hospitals and physician groups to organizations who pay for the care, including insurance companies and government agencies.
Rosenthal said that at the end of 2015, the company covered about 10 million patients in less than a dozen states. At the end of 2016, it was covering 100 million patients in 48 states. Employment at RowdMap’s Louisville offices doubled during that span to 30.
The CSO said the company chose the new location because of its open layout, because it keeps the company downtown (it is housed on Main Street now) and because the structure also houses Seven County Services, another health care organization.
Company leaders plan to complete the move into the new facility by mid-April. They’ll have about a month to get used to their new surroundings before hosting an invitation-only conference that will bring national health care leaders to Louisville.
Rosenthal said that the event will draw executives from top national health care providers, insurers and government agencies to downtown Louisville. The event is somewhat unusual, he said, in that it brings together various health care players, some of whom have an adversarial relationship, to work together to generate practical solutions that remove waste from the health care system.
Rosenthal said the issue concerns Kentuckians more than most Americans, because the state pays about 9 percent of its gross domestic product on ineffective health care, compared with 6 percent nationally.