One Medical has not been profitable so far. Its net loss in the first three quarters of 2019 was $ 34.2 million, and its previous valuation was more than $ 1.5 billion.
Editor’s note: This article comes from WeChat public account ” Artery Network “(ID: vcbeat) , author Gao Daolong.
On January 31st, Eastern time, the star company One Medical (parent company 1Life Healthcare), a member-level primary medical chain clinic, officially landed on Nasdaq after 13 years of long-distance running. , Raising $ 245 million, with JP Morgan and Morgan Stanley as underwriters.
It is important to point out that One Medical has not been profitable so far. Its net loss in the first three quarters of 2019 was US $ 34.2 million, and its previous valuation was more than US $ 1.5 billion, attracting Carlyle Group and Oak Tree. Private equity firms such as Oak Partners and venture capital firms such as Benchmark and Google Ventures.
On January 3, 2020, One Medical officially announced that it had submitted a listing application to the US Securities and Exchange Commission (SEC), and listed on NASDAQ on January 31 under the stock code “ONEM”.
Closed on January 31, 1Life Healthcare rose 57.64%
One Medical is a membership-based primary medical platform with offline clinics and online digital platforms. The highlights of its business model can be summarized as follows: Patients pay $ 199 a year in membership fees, and can provide patients with same-day appointments and 7 × 24 hours of digital support through remote medical consultation, making it easy for people to access affordable medical services.
As of September 30, 2019, One Medical has approximately 397,000 members, 77 offline clinics, and approximately 6,000 corporate clients in nine markets in the United States, including San Francisco, New York, and Chicago.
One Medical by TomTom Lee was founded in 2007 and is headquartered in San Francisco. Tom Lee is a doctor. He believes that “medical care should be a long-term cooperation between doctors and patients, not just a few minutes of outpatient conversation.”
In view of this, One Medical has innovated and optimized the primary healthcare service model in the medical industry. Why did this unicorn company gain the favor of capital and finally complete the IPO at this node, Arterial Network interpreted this? .
Online clinics and online digital applications address two major pain points at the grassroots level
In the United States, patients who want to go to the hospital usually need to make an appointment with the doctor a long time in advance. When making an appointment, they must schedule the appointment according to the doctor’s schedule. After a few weeks or even months, patients came to the hospital as scheduled, and had to wait in the front desk for a long time, fill in tedious personal information and medical records, and finally saw the doctor.
Long appointments, long waiting times, noisy environments, and high costs are common pain points in the US medical industry. The business content of One Medical, a US-based primary care company, is trying to solve this pain point.
At One Medical, people can make doctor appointments anytime, anywhere, and even make appointments for doctors of the day. When you come to the comfortably decorated clinic, the patient’s waiting time will not exceed 5 minutes, but the communication time with the doctor is very long. If it is only a small problem such as skin irritation, patients can also obtain telemedicine services through the One Medical official website or mobile application 7 * 24 hours.
Membership establishes a stable medical relationship
One Medical’s care model is that patients can get One Medical’s primary care doctors and services for an annual fee of $ 199, including texting doctors, scheduling appointments, and logging into the company’s digital platform. Stores all its health information.
Core users are targeted at office workers who live in urban centers such as New York and San Francisco. These adults receive health insurance through work.
In the U.S. market, the background of the rise of One Medical is that more and more people regard primary care as an untapped opportunity in the medical field, which may reduce costs and improve health. One Medical is trying to solve the traditional American primary The two biggest pain points in the healthcare market, namely the lack of customer experience and the frustrating working environment of doctors, doctors face higher burnout rates in traditional medical environments.
Thus, One Medical solves the above pain points through offline physical clinics + online digital applications. Offline, One Medical By spreading points and high coverage, the clinic will be set up in shopping centers, office buildings, residential communities and other places with a large number of people, so as to be as close to members as possible, saving member travel costs.
Unlike other medical institutions in the United States, doctors at One Medical Clinic receive about 16 patients per day, 25 people below the industry standard, so members receive treatment at One Medical Clinic much longer than other industry clinics, and even They can talk to their doctor’s appointment all day. “This can improve the doctor-patient relationship, doctors have more time to answer patients’ questions, and both parties can discuss various medical options in depth,” said Tom Lee.
At the same time, by using a powerful IT system to replace manual operations, the number of doctors in the clinic has been reduced from 4.5 to 1.5, which reduces industry management costs and improves the operating efficiency of the clinic.
Own your own electronic medical system and medical team
On the other hand, the decrease in the number of doctors and outpatients at One Medical Clinic does not mean that the overall number of consultations will be reduced. Online, One Medical also has a professional virtual medical team that provides medical services to members around the clock.
For non-emergency issues that do not require a visit to the clinic, members can solve them through One Medical’s official website or APP.
One Medical independently develops and builds electronic medical systems and EHR (electronic human resource management) systems, providing members with online appointments, patient billing, virtual healthcare services, video consultation, and in-app messaging (such as sharing electronic medical records Etc.), mental health services, and other services.
One Medical patient online access data (in thousands)
One Medical patient clinic visit data (unit: thousand times)
Based on this model, from December 31, 2014 toOn September 30, 2019, the number of One Medical members increased by 324%.
For the 12 months ended September 30, 2019, net income increased by 265% compared to the 12 months ended December 31, 2014. Members ‘online visits increased by 852%, and members’ clinic visits increased by 173%.
At the same time, in the 12 months ended September 30, 2019, One Medical’s retention rate among corporate customers reached 97% and its retention rate among consumer members reached 89%. Judging from the patient consultation data disclosed in the prospectus, its online visit data has grown very fast, with online visits reaching 2.07 million in the first three quarters of 2019, more than three times offline.
One Medical’s revenue is in three parts: annual employer and consumer subscription fee membership income, health network’s PMPM partnership income, and offline visits to receive income from health insurance and patients.
Net income increased from US $ 176.8 million in 2017 to US $ 212.7 million in 2018, an increase of 20%, and net income increased from US $ 154.6 million for the nine months ended September 30, 2018 to September 2019 On the 30th and 9 months, it was $ 198.9 million, an increase of 29%.
This increase was mainly due to an increase of 74,000 members, or 23%, from 323,000 to 397,000. Members are the main driver of net income.
But so far, One Medical is still not profitable. In summary, the reason why One Medical can develop so quickly is to innovate in technology and models around customer experience and service, and to obtain major revenue through the model of low-cost members.
The prospectus data shows that its NPS (user net recommendation value) reaches 90, which is higher than the NPS of large Internet companies, and generally reaches 50 to generate positive word of mouth.
Since its establishment, in the capital market, One Medical has previously completed multiple rounds of financing and has become a unicorn.Yes, it is a big financing company. This also proves from the side that the capital side recognizes its model. Among its investors, there are many top institutions, such as GV, J.P. Morgan, and Oak Investment.
One Medical financing history, data source Crunchbase
Some issues that need attention for sustainable development
In the beginning, One Medical provided primary health care services to individual members. About 5 years later, the company began to expand the target service group on a large scale, including corporate employers in the service category, and employers paid membership fees for employees.
Especially in 2013, Google Ventures invested in One Medical. Google is also One Medical’s largest corporate customer, accounting for nearly 10% of its revenue.
Today, companies such as Airbnb, Adobe, and Twitter have partnered with One Medical. They have added One Medical to the company’s medical benefits package, providing employees with comprehensive access to basic medical brachytherapy, 24/7 virtual care, and even on-site care. Helping employees improve their health, avoiding serious illness or going to the emergency room, reducing costly medical expenses for the company.
Corporate customers are in great demand of One Medical solutions and services, and their acquisition costs are lower compared to individuals.
One Medical CEO Amir Dan Rubin said that One Medical has helped companies reduce overall medical expenses by 8%. However, it cannot be ignored that One Medical needs to prevent and control the risk of over-reliance on some large enterprise customers, and still faces the difficulty of acquiring new customers for a long time.
Also, although the important role of primary care has been recognized in the market, primary care can effectively reduce costs by helping patients better manage chronic diseases, avoiding them becoming too sick, and avoiding having to enter more expensive Nursing agencies such as emergency rooms or emergency care centers receive services, but for start-ups like One Medical, hiring and retaining primary-level medical talent remains difficult.
One MedicalIt said that its competitors mainly include offline clinics set up by other primary health care providers and employers, mainly health insurance companies and pharmacy chain stores, such as Amazon, CVS Health and other doctors to open similar offline clinics. In the future, competition in the primary care market may be more intense.
One Medical’s care model is that patients can get One Medical’s primary care doctors and services for an annual fee of $ 199, including texting doctors, scheduling appointments, and logging into the company’s digital platform. Stores all its health information.
Core users are targeted at office workers who live in urban centers such as New York and San Francisco. These adults receive health insurance through work.
In the U.S. market, the background of the rise of One Medical is that more and more people regard primary care as an untapped opportunity in the medical field, which may reduce costs and improve health. One Medical is trying to solve the traditional American primary The two biggest pain points in the healthcare market, namely the lack of customer experience and the frustrating working environment of doctors, doctors face higher burnout rates in traditional medical environments.
Thus, One Medical solves the above pain points through offline physical clinics + online digital applications. Offline, One Medical By spreading points and high coverage, the clinic will be set up in shopping centers, office buildings, residential communities and other places with a large number of people, so as to be as close to members as possible, saving member travel costs.
Unlike other medical institutions in the United States, doctors at One Medical Clinic receive about 16 patients per day, 25 people below the industry standard, so members receive treatment at One Medical Clinic much longer than other industry clinics, and even They can talk to their doctor’s appointment all day. “This can improve the doctor-patient relationship, doctors have more time to answer patients’ questions, and both parties can discuss various medical options in depth,” said Tom Lee.
At the same time, by using a powerful IT system to replace manual operations, the number of doctors in the clinic has been reduced from 4.5 to 1.5, which reduces industry management costs and improves the operating efficiency of the clinic.
Own your own electronic medical system and medical team
On the other hand, the decrease in the number of doctors and outpatients at One Medical Clinic does not mean that the overall number of consultations will be reduced. Online, One Medical also has a professional virtual medical team that provides medical services to members around the clock.
For non-emergency issues that do not require a visit to the clinic, members can solve them through One Medical’s official website or APP.
One Medical independently develops and builds electronic medical systems and EHR (electronic human resource management) systems, providing members with online appointments, patient billing, virtual healthcare services, video consultation, and in-app messaging (such as sharing electronic medical records Etc.), mental health services, and other services.
One Medical patient online access data (in thousands)
One Medical patient clinic visit data (unit: thousand times)
Based on this model, from December 31, 2014 toOn September 30, 2019, the number of One Medical members increased by 324%.
For the 12 months ended September 30, 2019, net income increased by 265% compared to the 12 months ended December 31, 2014. Members ‘online visits increased by 852%, and members’ clinic visits increased by 173%.
At the same time, in the 12 months ended September 30, 2019, One Medical’s retention rate among corporate customers reached 97% and its retention rate among consumer members reached 89%. Judging from the patient consultation data disclosed in the prospectus, its online visit data has grown very fast, with online visits reaching 2.07 million in the first three quarters of 2019, more than three times offline.
One Medical’s revenue is in three parts: annual employer and consumer subscription fee membership income, health network’s PMPM partnership income, and offline visits to receive income from health insurance and patients.
Net income increased from US $ 176.8 million in 2017 to US $ 212.7 million in 2018, an increase of 20%, and net income increased from US $ 154.6 million for the nine months ended September 30, 2018 to September 2019 On the 30th and 9 months, it was $ 198.9 million, an increase of 29%.
This increase was mainly due to an increase of 74,000 members, or 23%, from 323,000 to 397,000. Members are the main driver of net income.
But so far, One Medical is still not profitable. In summary, the reason why One Medical can develop so quickly is to innovate in technology and models around customer experience and service, and to obtain major revenue through the model of low-cost members.
The prospectus data shows that its NPS (user net recommendation value) reaches 90, which is higher than the NPS of large Internet companies, and generally reaches 50 to generate positive word of mouth.
Since its establishment, in the capital market, One Medical has previously completed multiple rounds of financing and has become a unicorn.Yes, it is a big financing company. This also proves from the side that the capital side recognizes its model. Among its investors, there are many top institutions, such as GV, J.P. Morgan, and Oak Investment.
One Medical financing history, data source Crunchbase
Some issues that need attention for sustainable development
In the beginning, One Medical provided primary health care services to individual members. About 5 years later, the company began to expand the target service group on a large scale, including corporate employers in the service category, and employers paid membership fees for employees.
Especially in 2013, Google Ventures invested in One Medical. Google is also One Medical’s largest corporate customer, accounting for nearly 10% of its revenue.
Today, companies such as Airbnb, Adobe, and Twitter have partnered with One Medical. They have added One Medical to the company’s medical benefits package, providing employees with comprehensive access to basic medical brachytherapy, 24/7 virtual care, and even on-site care. Helping employees improve their health, avoiding serious illness or going to the emergency room, reducing costly medical expenses for the company.
Corporate customers are in great demand of One Medical solutions and services, and their acquisition costs are lower compared to individuals.
One Medical CEO Amir Dan Rubin said that One Medical has helped companies reduce overall medical expenses by 8%. However, it cannot be ignored that One Medical needs to prevent and control the risk of over-reliance on some large enterprise customers, and still faces the difficulty of acquiring new customers for a long time.
Also, although the important role of primary care has been recognized in the market, primary care can effectively reduce costs by helping patients better manage chronic diseases, avoiding them becoming too sick, and avoiding having to enter more expensive Nursing agencies such as emergency rooms or emergency care centers receive services, but for start-ups like One Medical, hiring and retaining primary-level medical talent remains difficult.
One MedicalIt said that its competitors mainly include offline clinics set up by other primary health care providers and employers, mainly health insurance companies and pharmacy chain stores, such as Amazon, CVS Health and other doctors to open similar offline clinics. In the future, competition in the primary care market may be more intense.
In the beginning, One Medical provided primary health care services to individual members. About 5 years later, the company began to expand the target service group on a large scale, including corporate employers in the service category, and employers paid membership fees for employees.
Especially in 2013, Google Ventures invested in One Medical. Google is also One Medical’s largest corporate customer, accounting for nearly 10% of its revenue.
Today, companies such as Airbnb, Adobe, and Twitter have partnered with One Medical. They have added One Medical to the company’s medical benefits package, providing employees with comprehensive access to basic medical brachytherapy, 24/7 virtual care, and even on-site care. Helping employees improve their health, avoiding serious illness or going to the emergency room, reducing costly medical expenses for the company.
Corporate customers are in great demand of One Medical solutions and services, and their acquisition costs are lower compared to individuals.
One Medical CEO Amir Dan Rubin said that One Medical has helped companies reduce overall medical expenses by 8%. However, it cannot be ignored that One Medical needs to prevent and control the risk of over-reliance on some large enterprise customers, and still faces the difficulty of acquiring new customers for a long time.
Also, although the important role of primary care has been recognized in the market, primary care can effectively reduce costs by helping patients better manage chronic diseases, avoiding them becoming too sick, and avoiding having to enter more expensive Nursing agencies such as emergency rooms or emergency care centers receive services, but for start-ups like One Medical, hiring and retaining primary-level medical talent remains difficult.
One MedicalIt said that its competitors mainly include offline clinics set up by other primary health care providers and employers, mainly health insurance companies and pharmacy chain stores, such as Amazon, CVS Health and other doctors to open similar offline clinics. In the future, competition in the primary care market may be more intense.