Jim Clark had already co-founded Silicon Graphics and Netscape when he took on the most paper-bound industry in America. His third company, Healtheon, went after healthcare's claims, referrals, and approvals. They moved by fax and phone and cost huge sums. Healtheon wanted to connect every doctor, insurer, lab, and patient over the internet so those steps happened automatically. Its offering in February 1999 drew attention largely because of Clark's track record.

Too Many Players, Few Standards

Jim Clark founded Healtheon in 1995. The bet was that the internet could take a large share of the waste out of healthcare administration. The company built software to check eligibility, submit claims, and handle referrals online. Progress was slower than planned. Healthcare had many players and few shared standards. Doctors, insurers, and hospitals each used different systems, and few saw a reason to change quickly.

Taking the WebMD Name

Healtheon priced its offering at $8 a share in February 1999, and the stock rose sharply that spring. Later in 1999 it merged with WebMD and several other companies, and the combined business took the WebMD name. WebMD became the best-known consumer health site in America. Cutting paperwork remained a large part of the business. WebMD stayed a public company until it was taken private in 2017.

Cover: The Doctor, James McNeill Whistler. Art Institute of Chicago, public domain. Chosen for a doctor (healthcare online).