One Medical

One Medical is a membership-based, direct primary care service provider which operates through physical locations (including onsite enterprise customer locations) and a digital proprietary platform. Focused mainly on the B2B2C segment, the company had served a total of 815,000 members and over 8,500 B2B2C clients as of March 2023. The company leverages technology to build an ecosystem for healthcare around its “1Life” brand which includes an electronic health records platform and telemedicine services.  

Unlike other preventative care providers, One Medical offers an annual subscription model that excludes covered conditions, which are billed to the insurer or paid out-of-pocket. One Medical charges an annual membership fee of USD 199 that covers access to continuous virtual care,  online bookings for same or next day in-person appointments, and prescription renewal as well as non-medical services such as lifestyle and wellness offerings and personal assistance solutions.The annual fee is not reimbursed by health insurance plans.

In September 2021, the company completed its acquisition of Iora Health for an all-stock consideration of USD 1.4 billion. The combined company is expected to create revenue synergies exceeding USD 350 million and annual net cost synergies of USD 30 million by 2025. The acquisition allowed One Medical to enter the Medicare space and the combined entity serves 28 markets in the US as of June 2022.  In February 2023, Amazon completed the acquisition of One Medical for USD 3.9 billion. 

Funding and Financials

One Medical was listed on the NASDAQ in January 2020 and raised USD 245 million in its IPO, valuing the company at USD 1.5 billion. Despite being in operation since 2007, the company is not yet profitable and has been recording increasing losses. For the nine months ending 30 September 2022, revenue has increased by 96% YoY to USD 771 million while net losses widened significantly by 87% to USD 297 million. This was mainly attributed to higher cost of care and medical claims expenses (2.6X YoY).