Credit Suisse https://www.credit-suisse.com as part of the HCDT&I Series, hosted Gina Bartasi, Founder & CEO, Kindbody https://kindbody.com, a NYC-based startup, providing an alternative to traditional fertility clinics. The company offers a full range of services enabling women to improve their overall health and wellbeing.
The company is in the fertility clinic business so that self-funded employers are able to provide cost-effective fertility benefits to employees and help uninsured women find a solution to their fertility needs by improving outcomes and reducing costs. Initially, the company focused on fertility, but today, Kindbody has expanded into gynecology, mental health, and wellness solutions for women.
The company currently has 8 locations and expects to have 14 locations in total by year end. The company has 53 virtual specialty providers and 32 full time providers. Kindbody rolls out clinics based on employer demographics, the competitive landscape, and the growth in the patient population.
Kindbody is addressing a significant total addressable market and sizes their TAM at $900 billion: $56 bin Gyn/Prenatal (non-OB), $15 bin Fertility (all fertility services excluding Rx), $12 bin on nutrition (Ovulation issues and PCOS), and $7 bin for mental health (related depression and anxiety.)
The company believes they can address these markets because of their patient-centered approach in the fertility industry. In fact, Kindbody is building a business centered on patients. The goal is to deliver a seamless solution so the patient by getting care delivered under one roof.
Management notes that Kindbody is unique and provides competition with their proprietary tech stack. The company owns its patient portal, EMR, and revenue cycle management, which all sits on one proprietary tech platform. The technology combines all these systems including online scheduling to provide increased standardization of care combined with an industry leading patient experience.
Kindbody’s proprietary technology also has predictive protocols and is HIPAA compliant. One of the key reasons Kindbody is able to have clinics in some of the most expensive markets in the country (New York, San Francisco , and Los Angeles) is simply the utilization of technology to supplement/replace headcount.
Kindbody has multiple revenue channels with about 144K covered lives and employer sponsorship is growing rapidly. The company has 44 employer customers with $170 min in contracted revenue today with the majority under three year agreements/
In addition to selling directly to employers, the company has a large self-pay business as well as managed care. Kindbody’s gross margins are in the 55% range, which the company believes can expand to the low-60% range in the next couple of years.
As for unit economics, a four wall clinic costs about $2.1 million to stand up which includes a full service fertility clinic with all other additional services and an IVF lab. These clinics take about three months to build out and can be profitable within ~15 months.
For more information, ask questions, provide feedback, or provide news, email Jailendra Singh at jailendra.singh@credit-suisse.com or call 212-325-8121.