Health IT, Startups

One Medical Group raises $65M to push its technology-led care delivery into new markets (Updated)

J.P. Morgan Asset Management led the round on behalf of PEG Digital Growth Fund II L.P. and AARP Innovation Fund L.P. Current and new institutional and individual investors also participated.

This post has been updated with emailed responses to questions.

One Medical Group is one of those companies that makes me wonder if it’s a provider with a lot of digital tech services or a technology company that enlists physicians. In any case, it’s set to expand both as part of a $65 million fundraise.

It will use the funding to move beyond the seven cities where it runs 40 offices in Boston, Chicago, Los Angeles, New York, Phoenix, San Francisco, and Washington, DC. It will also add more digital health tools beyond its current product offer of same-day appointment booking, prescription renewals, messaging and “digital dermatology”.

Update One Medical’s head of communications, Leyl Black, described the company’s evolution. It opened its first office in San Francisco in 2007. In addition to primary care services, it also provides women’s health, prenatal health, and travel health. This year its first family practice opened its doors. It offers both pediatrics and adult primary care.

Black noted it began working with employers a couple of years ago and has grown that to 150 organizations. Some are big name self-insured technology companies such as Adobe, Airbnb, GoDaddy, Lyft, and Percolate.

She also gave some history behind its app.

“Several years ago, we launched the first version of our mobile app and have continued to add functionality over the years, including ‘Treat Me Now’ functionality that enables members to get treated for basic health issues via the app.”

The business is affiliated with 1Life Healthcare, a healthcare tech and management services business.

Its “spa-like” primary care practices make me think of luxury concierge are services that are available to those customers willing to pay out-of-pocket for healthcare. It’s also the kind of care delivery that at times makes wonder whether it creates unrealistic expectations for how primary care is delivered to most people who cannot afford the additional cost and widen the care delivery gap between those who can afford it and those who can’t. Black added in a statement that  it accepts health plans from most insurance carriers, including Medicare.

“We also offer affordable pricing for patients who are paying out of pocket.”  Fortune noted that patients can pay $149 to $199 per year to access One Medical’s small, local clinics.

J.P. Morgan Asset Management led the round on behalf of PEG Digital Growth Fund II L.P. and AARP Innovation Fund L.P. Current and new institutional and individual investors also participated.

Earlier this year, the AARP launched its $40 million innovation fund with JP Morgan Asset Management with three funding priorities: technology that supports independent living, access to healthcare — such as telemedicine — and preventive health.

https://www.youtube.com/watch?v=3_JiNp5sZpM

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