When Policy Change Erased the Market

Quick Snapshot

Challenge
A sudden federal policy expanded public coverage for chronic conditions, eliminating the need for private consumer plans — and rendering the company’s direct-to-consumer model obsolete.

Xythena’s Role
Led a full strategic pivot to the public sector. We redefined the business model, reshaped the product for institutional buyers, built a new pricing and procurement strategy, and positioned the company for long-term value and acquisition.

Near-Term Wins
Launched a government-facing offering within six months. Signed the first institutional contract within eight.

Long-Term Outcome
Within three years, the company was acquired by a national insurer — the result of a disciplined pivot and a strategic foundation built to scale.

The Backstory

The company had a clear thesis: use AI to predict chronic disease risk and deliver personalized insurance products directly to consumers. The model was working — strong margins, a growing user base, and investor momentum.

Then, the policy changed. A federal reform expanded access to chronic care through public programs, eliminating the need for supplemental private plans. Practically overnight, the company’s buyer disappeared. What had been a differentiated, fast-scaling model no longer had a viable market.

That’s when Xythena stepped in — not to protect what was lost, but to architect what came next.

What Xythena Did

Repositioned the Business
We helped the company shift from a B2C insurer to a public-sector analytics partner. Instead of selling policies to individuals, it would provide predictive intelligence to government agencies managing chronic disease at scale. The mission stayed intact — but the buyer, business model, and language changed.

Adapted the Product
The core AI engine remained, but the delivery model was overhauled. We worked closely with the product team to build population-level dashboards, ensure outputs were explainable, and align workflows with agency requirements. Every feature was rebuilt around how government buyers assess value, manage compliance, and justify spending.

Reinvented Pricing and Packaging
We replaced individual pricing with multi-year, outcomes-based contracts tied to public health KPIs. These contracts aligned with budget cycles and offered the accountability agencies needed to commit. Pricing became a lever for institutional trust, not just revenue.

Designed a Public-Sector GTM Strategy
We helped the company enter a market that values stability over speed. That meant starting with pilot programs, identifying internal champions, and targeting budgeted programs where need and timing aligned. The company shifted its posture from “tech vendor” to “trusted public health partner” — and the market responded.

Planned for Exit from Day One
Even as we rebuilt, we looked ahead. We mapped likely acquirers, shaped a long-term positioning narrative, and tracked the metrics that would matter in diligence. Contracts, roadmaps, and ops systems were built to withstand scrutiny — and support a strategic sale when the time came.

Results That Mattered

Within 6 Months
The pivot was operational. The restructured product, redesigned pricing, and new go-to-market motion were all in place, with early traction already underway.

Within 8 Months
The company signed its first institutional contract with a regional public health agency — validating the model with early revenue and confirming it resonated with institutional buyers.

Within 3 Years
The company scaled across multiple agencies, established itself as a trusted analytics partner in public health, and was acquired by a national insurer that saw strategic value in both the technology and the position it had earned in the government market.

Why It Worked

Xythena helped the company:

- Let go of a model that no longer fit the world
- Rebuild its offering around a buyer with urgency, budget, and structural need
- Earn trust in a complex, regulated market
- Position for acquisition — and build toward it deliberately

This wasn’t a reaction. It was a redesign — executed with clarity, precision, and foresight.

The Xythena Difference

When markets shift, companies don’t need to adapt — they need to reinvent. At Xythena, we help founders navigate inflection points with speed, structure, and strategic depth. Whether you're forced to pivot or choosing to scale, we help you define the next move — and execute it with intent.

Let’s talk about what your next chapter could look like.