Lessons from Wei-Li Shao, President of Omada Health, on achieving long-term weight health
Wei-Li Shao, President of Omada Health, a virtual-first chronic care provider helping members make lasting changes to improve health and reduce care costs for organizations.
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Welcome back to the Pear Healthcare Playbook! Every week, we’ll be getting to know trailblazing healthcare leaders and dive into building a digital health business from 0 to 1.
Today, we're so excited to get to know Wei-Li Shao, President of Omada, a virtual care program that blends human experiences technology and behavior science to help people with chronic conditions achieve their healthy goals. With over 25 years of global healthcare experience, Wei-Li has worked in digital care, biopharmaceuticals, imaging, and diagnostics spanning many therapeutic areas. Before joining Omada, Wei-Li held prominent executive roles at Eli Lilly and Company in the USA, China, Taiwan, and New Zealand. His educational background includes dual degrees in biochemistry and molecular biology from the University of Wisconsin Madison, complemented by an MBA in marketing from the Kellogg School of Business.
In this episode, we discuss Omada Health's core operations, discuss the optimal timing for startups to bring in C-suite executives, explore Omada's journey to serving 1 million members, examine its pioneering work in the GLP-1 (Glucagon-Like Peptide-1) space, and uncover how Omada leverages AI to enhance its services.
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Omada: The Virtual-First Chronic Care Provider
Omada Health is dedicated to addressing the challenges in healthcare, particularly focusing on chronic conditions such as diabetes prevention, weight management, hypertension, and musculoskeletal issues.
“To best describe Omada is to look at two sides of the same coin around the problem and opportunity statement”
On one side lies the problem: the current healthcare system's shortcomings in adequately supporting individuals with chronic conditions, where brief and sporadic doctor visits often leave patients with complex instructions and limited ongoing guidance.
On the flip side, lies the opportunity: to reimagine healthcare delivery through continuous, personalized support leveraging technology and behavioral science.
Omada recognized this opportunity over a decade ago, prompting them to develop a solution that provides continuous, evidence-based care tailored to each individual's needs.
“Roughly 80-90% of healthcare outcomes are generated in between the doctor’s visit”
Their approach emphasizes engaging user experiences and convenient virtual platforms to deliver ongoing support between doctor visits.
By leveraging technology, proactive care teams with coaches, and connected devices like a continuous glucose monitor, digital scale, pedometer, and other tools, Omada ensures that patients receive personalized, clinically validated interventions aimed at promoting behavior change and improving health outcomes.
With 28 peer-reviewed trials validating their approach, Omada has proven the effectiveness of its persistent care model.
In addition to addressing cardio-metabolic conditions like diabetes and hypertension, Omada also incorporates musculoskeletal care, recognizing the interconnectedness of these conditions. By offering a holistic approach to health management, they empower individuals to work towards overarching health goals rather than focusing solely on specific conditions.
Moreover, Omada's seamless integration of various healthcare services into a single user-friendly platform sets them apart from traditional care providers.
Through their virtual platform, patients can access a range of services without the need for multiple appointments or visits to different specialists. This accessibility and convenience are fundamental to Omada's mission of transforming healthcare delivery and improving outcomes for individuals with chronic conditions.
“We have the ability to seamlessly pull all that together—primary care, specialty referrals, and other healthcare services—into one user experience where you don't have to go anywhere. All you have to do is go the distance of 24 inches between your hand and your pocket.”
From Drug Development to Digital Care: Wei-Li’s Journey to Omada
Wei-Li's transition from being VP of Eli Lilly, a prominent Fortune 100 company in the pharmaceutical space, to the burgeoning landscape of startup culture at Omada Health might seem like a monumental leap. However, Wei-Li finds parallels between the two domains.
“Any scaling startup can benefit from the experiences of individuals and leaders that have seen scale and have been through a lot of the challenges."
The pharmaceutical industry engages deeply with health plans, pharmacy benefit managers, and digital health solutions, sharing common stakeholders within the healthcare ecosystem with Omada when it comes to scaling the offering.
When Wei-Li was working for Eli Lilly in 2013 he was working on the second largest business in diabetes for the company in China.
“I had this incredibly insightful experience while in the rural western part of China. In a dimly lit clinic, I found a defibrillator on the wall, covered in plastic and unplugged. Opening the refrigerator, I found two vials of nearly expired insulin. Speaking with the primary care doctor, I learned about the skyrocketing rates of diabetes in the region and the fear surrounding insulin usage due to the risk of causing harm.”
In that moment of revelation, Wei-Li realized the transformative potential of technology in revolutionizing healthcare delivery. Inspired by this encounter, he embarked on a mission to leverage digital solutions to bridge the gap in diabetes care. Partnering with Tencent, the owner of WeChat, Wei-Li spearheaded the launch of the first diabetes Connected Care virtual program in China.
The program swiftly gained traction, reaching thousands of individuals in a matter of months and marking the beginning of Wei-Li's enduring passion for virtual care and his eventual work with Omada.
When Startups Should Consider Bringing in C-Suite Executives
“There is a transition for startups from skill in will, to capability and resilience. Skill and will resides in individuals, which is very characteristic of a startup; you have a couple of people who's just like power through and they make things happen. But that's not scalable, nor is it sustainable. And so you gotta move from skill and will to capability and resilience, which is an institutional description of a whole bunch of people working together in a concerted way to make great things happen.”
Determining the right time for startups to incorporate C-suite executives hinges on the anticipation of significant changes, particularly in terms of scalability.
It's important to recognize that mere growth rates, such as from 50% to 100%, don't necessarily signify scaling. True scaling occurs when dealing with thousands or tens of thousands of accounts, where the complexity of managing various organizational components becomes overwhelming and difficult to control.
At this stage, which often entails managing a significant number of accounts, it becomes crucial to consider adding C-suite executives.
However, the selection process is critical. While many may assume that executives from larger corporations are the solution, it's essential to seek individuals who possess a unique blend of experiences.
These individuals should have not only worked in larger organizations but also served as intrapreneurs within those entities.
Intrapreneurs are executives who have initiated projects from the ground up within a scaled organization, thus understanding the intricacies and challenges associated with growth. They are not hesitant to roll up their sleeves and delve into the trenches, actively working on the ground to get things done.
Furthermore, it's beneficial to bring on board executives who have launched businesses and experienced both successes and failures. This provides them with a nuanced understanding of responsible investment and the potential repercussions of resource misallocation. Having this depth of experience allows executives to make informed strategic decisions and mitigate the risk of irreversible damage in the event of a necessary pivot.
Scaling to 1 Million Patients
Omada's journey began in 2011, and after 12 years of dedicated efforts, they achieved a significant milestone in September 2023 by reaching the 1 million-member mark. This remarkable accomplishment didn't come easy, and there were several key factors that contributed to their success.
Strategic Pricing and Financial Management: Omada's success in reaching the 1 million-member mark was underpinned by strategic pricing and financial management. They meticulously balanced their pricing strategy with maintaining healthy unit economics. This approach allowed Omada to sustain its investment in innovation while achieving financial stability. Getting the pricing right and managing unit economics were critical aspects that required hyper diligence, especially during periods of high growth. Omada recognized the importance of aligning financial strategies with its long-term growth objectives, enabling them to scale effectively while remaining financially resilient.
Talent Management and Organizational Development: Omada understood the significance of talent management and organizational development in scaling its operations. Transitioning from relying solely on individual skills to building organizational capability and resilience was a key priority. This transition involved making tough decisions regarding talent management. Omada sought to ensure that its employees could grow alongside the company's expansion, while also recognizing the need to bring in experienced executives who could provide valuable mentorship and guidance.
Cultivating a Culture of Innovation: Despite scaling operations, Omada remained committed to fostering a culture of innovation. Leaders played a pivotal role in embedding a value for innovation at the core of the organizational DNA. Maintaining this culture of innovation while pursuing scalability and profitability was a delicate balance. Omada recognized that innovation was essential for driving long-term growth and remaining competitive in the rapidly evolving healthcare landscape. Omada empowered employees to think creatively, experiment with new ideas, and challenge the status quo.
Omada’s Partnership with Amazon
In January of 2024, Omada announced a partnership with Amazon Health Services to increase awareness and discoverability of its cardiometabolic programs through Amazon’s new Health Condition Programs.
This collaboration emerged from established connections between Omada's CEO, Sean Duffy, and key executives at Amazon. It was driven by a shared recognition of the opportunity and challenge posed by the significant number of commercially insured adults in the United States, estimated to be close to 20 million.
Despite having access to benefits, many individuals remain unaware of their coverage. Amazon and Omada devised a concept leveraging Amazon's vast platform and consumer insights. They identified that individuals often search for health-related products on Amazon, signaling an intention to improve their health.
Building on this insight, they designed a solution to seamlessly connect individuals with their employer-sponsored benefits and Omada's proactive care team while they are in the midst of their daily routines on Amazon's platform.
When individuals search for health-related products on Amazon, such as exercise bands or scales, they may encounter a banner notifying them about the availability of lifestyle intervention programs covered by their insurance.
By clicking on the banner and entering their information, individuals are swiftly guided through a streamlined enrollment process.
Omada's software development kit (SDK) verifies their insurance coverage in real-time, providing instant confirmation of eligibility.
Within minutes, eligible individuals can enroll in Omada's program at zero out-of-pocket cost, eliminating the need for extensive navigation through benefits portals or HR websites.
This frictionless approach ensures that individuals receive timely access to the support and resources they need to achieve their health goals.
Omada's Innovative Approach to GLP-1 Care
At Omada, there is this belief that GLP-1 therapy, when complemented with a proven lifestyle intervention and behavior change program, can drive lasting health improvements.
“GLP-1s by themselves are not the silver bullet, but in combination with the right support, they could truly change the trajectory or serve as an inflection point on the projected curve for obesity, cardio-metabolic conditions, and a multitude of other health issues.”
Transitioning to a GLP-1 regimen signifies a profound metabolic shift. While GLP-1s induce rapid changes, it's crucial to address the broader aspects of well-being beyond mere weight reduction.
Omada's approach is centered on providing tailored support during this transition period, offering personalized coaching and resources to navigate potential side effects and dietary adjustments.
Omada’s GLP-1 program focuses on four product updates to incorporate behavior change alongside medication and create infrastructure capabilities to complement reimbursement policies, including:
Rigorous training for Omada’s Care Delivery Team: Specialized training for our health coaches and specialists on how to help members taking GLP-1s for weight management;
Free lifestyle change resources: Proprietary, clinically-based educational materials to help members taking GLP-1s manage side effects, guide appropriate use, and mitigate weight gain when they decide to go off;
Community support: Adding a moderated GLP-1-specific peer group to Omada’s in-program community offerings to build a support system for people going through the journey of being on GLP-1 therapy;
Services to support employers and PBMs with administering coverage policies: Omada’s technology and infrastructure can support our partners with operationalizing reimbursement policies for the responsible use of GLP-1s.
Omada’s commitment extends beyond conventional weight loss metrics, encompassing aspects like muscle health.
Recognizing the importance of preserving lean mass during weight management journeys, Omada has expanded its GLP-1 care track to include dedicated resources for maintaining muscle health.
This holistic approach, integrating GLP-1 therapy with comprehensive lifestyle interventions, reflects the mission to drive meaningful, long-term improvements in population health.
In conjunction with this, Omada Health has collaborated with Cigna/Express Scripts (ESI) on their EncircleRx program, marking a significant advancement in GLP-1 coverage and outcomes management.
As a component of this initiative, Omada functions as the behavior-change companion for GLP-1 coverage, with the goal of improving medication adherence and health outcomes through FDA-recommended behavior-change programming. This marks the inception of the first scaled PBM program that addresses both the cost of these medications and outcomes by integrating them with FDA-recommended behavior-change programming.
Recent findings from a study based on over 2,500 members in ESI’s SafeGuardRx program underscore the efficacy of this integrated approach, with participants who had at least one pharmacy claim for a GLP-1 medication engaging meaningfully with Omada's lifestyle change programs experiencing 1.7 times greater weight loss over 12 months compared to those with limited engagement.
How Omada Leverages AI
Omada Health operates within an asynchronous messaging system, facilitating communication between its care teams and patients even when they are not actively engaged with healthcare professionals.
With over 25 million messages exchanged, this vast pool of unstructured text presents an ideal opportunity for leveraging AI and machine learning (ML).
Omada has integrated AI algorithms into its platform to analyze these text-based exchanges. For instance, the GPT can summarize long-term interactions between patients and coaches, providing valuable insights into their progress and evolution over time.
The summarized data is then cross-referenced with Omada's extensive database of health insights to suggest personalized next steps and interventions that have proven effective in driving engagement and behavior change.
For instance, health coaches often face the challenge of aligning a patient's treatment plan with their dietary habits and daily routines. It may take several minutes for coaches to analyze glucose data and food logs to formulate recommendations. AI presents an effective solution by automating some of this process, allowing human oversight to finalize and approve recommendations.
Additionally, Omada is employing ML models to enhance internal processes to streamline business operations and processes. That includes engineering workflows, automating coding tasks, and clinically staying up to date on the latest evidence.
While Omada has been investing in AI and ML capabilities for some time, the company continues to expand its team of data engineers and AI scientists to further advance its technological innovations.
Wei-Li’s Fire Round Thoughts
What energizes you the most about working in healthcare?
“The ability to deliver a new form of care, such that in the future, people don't even realize they're engaging in their healthcare, becomes as habitual as brushing your teeth.”
What have you changed your mind about in the last 12 months when it comes to healthcare or digital health?
“I have changed my view on return on investment. So, the money invested in healthcare should certainly yield returns, and then some, as driving down healthcare costs is important. However, it's more than just about the money. It's about the happiness of the member; are they fulfilling their goals? Are they making daily efforts, whether big or small, to improve their health? Has their attitude toward their own health changed positively? Are they engaging in their healthcare in a far more positive way than they were just a year ago? I now perceive it in terms of value from the patient or member's perspective, rather than simplifying it down to just dollars and cents as the industry often does.”
How might our current practices in healthcare be perceived in the future, say, a decade from now? Will people look back and marvel at the way we used digital health today, as compared to the advancements and innovations that will have unfolded over the past decade?
“It's similar to how my kids express disbelief that I once had to go to the wall to use a telephone on a relay board. Similarly, I believe that a decade from now, people will be astonished by the idea of physically visiting a doctor's office for routine care. Instead, they'll seamlessly access care through persistent, readily available channels like Omada, integrating healthcare into their daily lives. While doctors will remain essential, the notion of visiting them for mundane matters will appear outdated.”
What advice would you give someone wanting to pursue a career like yours?
“Invest in yourself and pursue opportunities. Sometimes you'll get promoted, and many times you won't. But reaching a remarkable place where you're making an extraordinary impact and exerting influence demands a solid foundation. This ensures that when you arrive, you not only meet but exceed expectations. Building such a foundation necessitates embracing diverse experiences, many of which may not entail promotions. I understand it's challenging, especially early in one's career. Yet, it's crucial. Those who spend time curating their experiences, regardless of lateral or promotional moves, are often the ones in leadership roles."
Interested in Omada? Learn more on their website, X, and LinkedIn
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