How does One Medical make money?

Steven Loeb · June 7, 2019 · Short URL:

One Medical charges a $199 membership fee to access platform, while also billing insurance for care

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While there are a lot of startups attempting to upend the way people get care, including both Heal and Carbon Health, one of the most notable so far in the space has been One Medical, a members-only technology platform that runs its own clinics across the U.S.

"One Medical is a membership-based practice focused on making quality care more accessible and enjoyable for all. No more waiting forever in stuffy waiting rooms, being rushed through appointments, or getting lost in the healthcare maze,"  the company writes. "Our offices have beautiful, calming waiting rooms — not that you’ll spend much time in them. Our appointments start on time, and are longer than average so providers have time to really listen. We’re driven by a shared mission to transform healthcare by designing it around people’s real lives."

The company focuses on providing its members prevention and screening, acting as a hub for medical information with a repository for the patients records. That includes coordinating tests, treatments, specialist visits and hospitalizations, as well as providing guidance, insight and advice.

The company makes money in two different ways; the first is through its membership fees, which costs $199 a year. Members able to book appointments online, while also being able to access their medical records, prescription renewals, specialist referrals, travel services, a free mobile app to manage their health, the ability to email their doctor, and access to One Medical's online community, which includes blog features, health tips, medical news, and recipes from One Medical doctors.

"The Annual Membership Fee allows us to offer you the innovative digital health tools and value-added services that make One Medical unique. The Annual Membership Fee is paid to 1Life Healthcare, Inc., the healthcare technology and management company affiliated with One Medical, that develops the digital health tools and enhanced services that One Medical offers to its members," the company says in the FAQ section of its website.

"The Annual Membership Fee covers costs associated with access to the 1Life Healthcare proprietary technology platform, which includes such benefits as online appointment booking and online prescription renewal requests. Members who pay the Annual Membership Fee also have access to time-saving services through the One Medical Mobile App offered by 1Life, including online appointment booking, online prescription renewal requests, on-demand video visit technology, and digital access to virtual medical services on the go."

People can also access medical services from One Medical providers without paying for the membership, but they won't have access to online appointment booking, on demand video visit technology or access to the One Medical mobile app. For members who want access to those services but cannot afford it, the company also offers financial assistance.

On top of the membership fee, One Medical works like a typical doctor's office, billing insurance for services. The company accepts insurance from providers such as Aetna, Anthem Blue Cross, Cigna, Oscar, United Healthcare and Medicare, though it does not accept Medicaid at this time.

"In order to offer a seamless experience and make our services accessible to more people, we accept most major insurance plans and bill for services through your insurance — just like a typical doctor's office," the company writes. 

Founded in 2007, One Medical has raised $532.1 million from investors that include Benchmark, GV, Lifeforce Capital, Redmile Group, Maverick Ventures and Carlyle Group. It currently has clinic locations in Boston, Chicago, Los Angeles, New York, Phoenix, San Diego, Seattle, SF Bay Area and Washington, D.C.

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