As part of Credit Suisse’s “Healthcare Disruptive Technologies & Innovations” series https://www.credit-suisse.com, One Medical https://www.onemedical.com, a member-based intelligent national primary care organization, took part in a small group investor lunch meeting in Boston with the President and CEO. Amir Dan Rubin, and CFO Bjorn Thaler.
One Medical uses a modernized primary care membership model with care delivered through a network of medical offices and uses seamless digital health services. Also, the company not only provides in-office care, but is able to provide care to where people shop, and live.
One Medical charges an annual membership fee of $200 to individuals and employers as well as receives payments from health systems for partnerships. Members have access to medical offices in 72 locations in nine metropolitan regions. The medical offices offer access to well-appointed offices 24/7, on-demand international access to virtual care, chat, messaging, and navigation.
One Medical’s services also include women’s health services, pediatrics, behavioral health, sports medicine, lifestyle and well-being programs, plus lab testing capabilities within each of their office locations. The company’s model is designed to have no more than a 1-2 minute wait for patients at One Medical office locations.
The company recently launched their virtual capability in San Diego and has plans to launch physical offices in San Diego in the near future via a partnership with the University of California, San Diego. Additional plans are to open offices in Portland, Orange County, and Atlanta in 2020.
One Medical is affiliated with 1Life Healthcare, https://www.1life.com, a healthcare technology and management services company. The 1Life Technology Platform enables the company to have access to a substantial data enabling benefit coordination for employees, and to answer broad healthcare questions.
The company’s use of technology is able to proactively engage members with a personalized clinical outreach to improve health levels, while driving engagement and retention. About 45% of One Medical’s members use the company’s app/web every month. In addition, company members can receive an automated check-in from their provider for around 130 illnesses.
About 85% of One Medical’s members are covered in a relationship through the company’s health system partnerships. According to management, partnering with the company can be a more effective, expeditious, economical, and a less risky way of developing a consumer driven network of commercial lives.
From the company’s perspective, partnerships with health systems are helping the company to quickly get members into specialty care which is otherwise hard to do while promoting attractive recurring revue streams.
One Medical has posted membership growth at a Compounded Annual Growth Rate (CAGR) greater than 35% and revenue growth at a CAGR greater than 25% over the last five years since the company believes that during the last five years they were not yet focused on growth.
Management believes that the company can grow even faster going forward because in the last couple of years, the company has opened more offices, built a strong sales culture, and has focused on more health system partnerships.
Contact Research Analyst Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121 for more information and/or feedback.