Disruptive primary care medical practice One Medical Group, is announcing $40 million in growth capital led by Redmile Group, with participation from current institutional investors. The company previously raised $77 million in funding from Benchmark, DAG Ventures, Maverick Capital, Oak Investment Partners, Google Ventures and others.
One Medical Group Raises $40M To Help Reinvent The Doctor’s Office
One Medical which won the 2013 Crunchie for Best Health Startup, was founded by MD Tom Lee as a way to reinvent the traditional experience of visiting a doctor. Instead of waiting for hours on the phone or in an office, patients can schedule appointments online, request prescriptions, get lab results digitally, and see their personal health summary online. Doctors can access medical records electronically (One Medical designed its own electronic medical record with doctors and patients in mind, not administrators). And patients can visit any office since every doctor has access to their records.
The company now has 27 locations nationwide, with offices in Boston, Chicago, Los Angeles, New York, San Francisco and Washington, D.C. The startup charges a $149-$199 annual fee to access this type of care.
“We started One Medical to build a better primary care delivery model – one that uses technology to deliver higher-quality care and service more affordably,” said Tom Lee MD, the company’s founder and CEO. “With our recent expansion into the enterprise, employers are discovering that our model can help them lower their overall health care costs while giving their employees turnkey access to quality primary”
In 2013, One Medical opened seven new offices and grew its member base by over 50 percent. The company also launched a new telehealth service via Google Helpouts. And the company recently debuted its enterprise offering, which allows companies to offer One Medical as a perk. Currently, over 40 companies are now enrolled in its employee health benefit program, including Adobe, Doximity, Fitbit, NBCUniversal, On Deck Capital, Percolate, Quantcast, Sequoia Benefits, Uber and Wanelo.
Lee says the new funding will be used towards expansion to new cities, and to further product development on the back-end. We’re told that mobile, in particular, will be a big focus on the technology side.
As a loyal client of One Medical, I can attest to its benefit. For example, you can get your blood tested when you go for a physical at any of the offices. There are always same-day appointments available online. A colleague of mine made an appointment from her phone in the middle of the night for the next morning at 8:30 am PT. The convenience aspect alone of One Medical makes it worth the $150 fee for me. I suspect on the technology side of things, there is a lot more One Medical can do to make patients’ lives easier and healthier as well.