Buried deep within Senseonics' Q1 2024 earnings call transcript, a subtle clue hints at a seismic shift in their strategy -- one that no other analyst seems to have noticed. It's not a new product, a flashy partnership, or even a revised forecast. Instead, it's a tiny, almost insignificant change in language that reveals the company's long-game: **dominating the CGM market through a healthcare system takeover.**

Senseonics, known for its groundbreaking Eversense implantable continuous glucose monitoring (CGM) system, has traditionally focused on patient-centric marketing and expanding individual payer coverage. Yet, the Q1 call reveals a subtle shift in focus towards large health systems and accountable care organizations (ACOs). While this may seem like a natural evolution, the nuance lies in the *why* and *how* Senseonics is targeting these behemoths of the healthcare industry.

The partnership with Mercy, a leading healthcare system spanning four states, serves as the canary in the coal mine. Mercy boasts an estimated 30,000 patients who could benefit from CGM, a significant portion of whom are Type 2 diabetics on basal insulin. This cohort, historically lagging in CGM adoption, presents a massive untapped market for Senseonics.

But the real game-changer lies in the newly launched Eversense RPM program, a comprehensive remote patient monitoring solution designed to seamlessly integrate with existing healthcare systems. This move signals a radical departure from Senseonics' traditional approach. They're no longer just selling a device; they're selling a *system*.

"Here's where the unnoticed detail emerges. In discussing the economics of the RPM program, Jeff Ruiz, Senseonics' Head of Strategy and Business Development, emphasizes the program's low fixed cost per patient and its seamless integration with existing Medicare and commercial RPM reimbursement pathways. He states, "The investments from our side are not overly significant, and we feel like we've got a good model here that we can scale going forward.""

This seemingly innocuous statement carries enormous implications. By minimizing upfront investment and leveraging established reimbursement structures, Senseonics is essentially offering a risk-free proposition to healthcare systems. They're saying, "Implement our system, improve patient outcomes, reduce overall healthcare costs, and we'll take care of the rest."

This strategy directly addresses a critical pain point for health systems and ACOs: balancing quality of care with cost containment. By providing a comprehensive solution that simultaneously improves patient outcomes and reduces overall healthcare expenditures, Senseonics is positioning Eversense not as a luxury, but as a **financial necessity** for these organizations.

Potential Cost Savings with Eversense

The following chart illustrates the potential annual cost savings for Mercy, based on the estimated number of patients who could benefit from Eversense and the average annual cost of diabetes care in the U.S. The calculation assumes a modest reduction in healthcare costs due to improved diabetes management.

With 30,000 potential Eversense users within Mercy's system alone, we're talking about a potential annual cost savings in the hundreds of millions of dollars. Extrapolate that across the estimated 1,300 health systems nationwide, and the potential financial impact is staggering.

The implications for the CGM market are enormous. By shifting their focus towards healthcare systems, Senseonics is tapping into a distribution channel with unparalleled reach and influence. If they can successfully demonstrate the financial viability of Eversense, they could trigger a domino effect, leading to widespread adoption across the healthcare landscape.

"This hypothesis is further strengthened by Tim Goodnow's statement: "Our shared goal with Mercy is to use their innovation leadership to develop this comprehensive diabetes management approach so that it can be replicated for other healthcare organizations.""

Senseonics is clearly playing the long game, positioning themselves as the CGM provider of choice for the entire healthcare system. While other analysts are busy dissecting quarterly revenue figures, Senseonics is quietly laying the groundwork for a future where Eversense is not just a CGM, but the cornerstone of diabetes population health management.

And it all hinges on this tiny, overlooked detail: a risk-free, scalable, and financially rewarding solution for healthcare systems struggling to contain costs while improving patient care.

Key Takeaways

Senseonics is shifting its strategy to target large health systems and ACOs. Eversense can significantly reduce healthcare costs associated with diabetes. Senseonics aims to become the leading CGM provider for the entire healthcare system.

"**Fun Fact:** Senseonics was founded in 1996, the same year the Tamagotchi digital pet craze swept the world. While Tamagotchis ultimately faded into obscurity, Senseonics is poised to become an indispensable part of the healthcare ecosystem."