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Preventive Healthcare

Membership-based, non-insurance healthcare companies helping maintain a steady state of well being.

Overview

Preventive health: personalized remedies against future health challenges

Preventive care delivers personalized prophylactic care to patients and facilitates clinical decision support to practitioners, as opposed to reactive care, which intervenes after health conditions deteriorate. Preventive care technologies track physiological and biometric data through connected devices in real time and store them in a patient portal, housing electronic health records. This data is analyzed continuously by artificial intelligence (AI) algorithms to predict and warn patients and healthcare providers of potential health issues.

The growing frequency of chronic diseases and the rise in associated costs are a substantial burden to reactive care in the US. Many providers are now offering advanced preventive health solutions to individuals and corporate clients to mitigate risk of conditions such as cancer, diabetes, and heart disease.

What's driving this industry?
Market Sizing

The US preventive care market will grow to USD 48-71 billion by 2025

Conservative case

USD 48 Bn

Base case

USD 59 Bn

Expansion case

USD 71 Bn

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COVID-19 IMPACT

Many preventive care providers have transitioned to virtual care, Covid-19 testing and vaccination, and workplace re-entry services for their members and corporate clients to ensure continuous care. 

  • One Medical’s memberships rose 29% YoY to 511,000 in Q3 2020. 

  • Crossover provided members with Covid-19 screening and testing services and mental health support, as well as telemedicine services for members who tested positive. 

  • Livongo saw its number of enrolled diabetes members more than double in Q3 2020 to 442,724.

  • Catapult Health achieved record 22% volume growth in September 2020.

  • Oak Street Health served 59,500 at-risk patients, up 38% YoY, in Q3 2020.

  • Cityblock Health recorded a 2,000% surge in telehealth visits between March 20 and June 30.

Market Mapping

We have identified six segments for the preventive healthcare industry. Direct primary care providers account for nearly one-third of companies in our coverage. The next largest segment consists of passive remote monitoring platforms that offer connected devices to track patient vitals. These startups compete with established clinics and hospitals which have also adopted a value-based approach to offer an extensive range of preventive care services.

We have also determined that many of the disruptors that offer direct primary care, digital therapeutics, and specialized chronic care platforms are in their growth stage, with funding directed towards scaling up operations to serve the rising demand for chronic care prevention and treatment as well as the escalating medical costs. However, most passive remote monitoring platforms and diagnostic tools are still in the early or seed stages.

Incumbents
Growth
Early
Seed
Pre-Seed
Direct Primary Care (DPC)
?
Digital Therapeutics (DTx)
?
Specialized Chronic Care Platforms
?
Diagnostic Tools
?
Population Health Management Solutions
?
Passive Remote Monitoring Platforms
?
ClosedLoop.ai
ClosedLoop.ai
ClosedLoop.ai
ClosedLoop.ai
ClosedLoop.ai
ClosedLoop.ai
Mayo Clinic
Walgreens
Premise Health
Cleveland Clinic
Cityblock Health
One Medical
Carbon Health
VillageMD
Iora Health
Crossover Health
Forward
Everside Health
Oak Street Health
Eden Health
Vera Whole Health
Parsley Health
Tia
Patina Health
Rezilient Health
Sharecare Inc.
Omada Health
Livongo
Vida Health
Kaia Health
FemTec Health
DarioHealth
AppliedVR
Better Therapeutics
Index Health
Milliman
Hinge Health
Virta Health
SWORD Health
Lark Health
Glooko
Calibrate
Hello Heart
RecoveryOne
Found
Signifier Medical Technologies
January AI
Oshi Health
IncludeHealth
9am.health
AliveCor
Viz.ai
Eko
Pearl
Theator
Milliman
VillageMD
Stellar Health
ClosedLoop.ai
Socially Determined
AliveCor
Eko
Biotricity
Catapult Health
Cue Health
Biolinq
Casana
Know Labs
Aktiia
Movano Inc.
Levels
Rhythm Diagnostic Systems
OutSense
Clinicai
MR3Health
Toi Labs
Cardiomo Care Inc.
Medipee
Medic.Life
Coprata

The Disruptors

Disruptors deliver personalized care by leveraging data

Disruptors in the preventive care landscape attempt to build more personalized and value-based relationships with members through real-time monitoring coupled with intelligent analytics to predict potential health issues. Many disruptors operate on a subscription-based model charging for the use of an in-house platform/app with fees averaging USD 150 per month. They offer real-time care by leveraging information from sensors/wearables and coordinate with providers via telemedicine so patients can reach out to practitioners in the comfort of their homes and share vitals through the same platform to have interventions before escalations.

We have identified One Medical as the leading direct primary care provider given its large member base and long history of operations. The direct primary care segment dominates the preventive healthcare industry in terms of funding, accounting for more than half of total funds raised as of June 2021. Despite a smaller number of players, both digital therapeutics and chronic care management platforms have also attracted a much larger share of funding compared to passive remote monitoring platforms. Noteworthy digital therapeutics and chronic care management platforms include Sharecare, Hinge Health, and Virta Health.

Direct Primary Care (DPC)

?

Disruptors

?
Funding in USD Millions
Oak Street Health
Public - Market cap USD 6.1 bn
One Medical
Public - Market cap USD 2.9 bn
Cityblock Health
891
Carbon Health
523
VillageMD
491
Iora Health
349
Crossover Health
281
Forward
225
Everside Health
165
Tia
133
Eden Health
99
Vera Whole Health
96
Patina Health
57
Parsley Health
36
Watchlist
?
Rezilient Health

Digital Therapeutics (DTx)

?

Disruptors

?
Funding in USD Millions
Sharecare Inc.
Public - Market cap USD 2.5 bn
DarioHealth
Public - Market cap USD 170.6 mn
Omada Health
257
Livongo
235
Vida Health
188
Better Therapeutics
144
Kaia Health
123
AppliedVR
71
FemTec Health
Unknown
Watchlist
?
Index Health

Specialized Chronic Care Platforms

?

Disruptors

?
Funding in USD Millions
Hinge Health
1026
Virta Health
373
SWORD Health
323
Lark Health
196
Found
132
Calibrate
128
Glooko
101
Hello Heart
68
Signifier Medical Technologies
58
RecoveryOne
50
January AI
30
Oshi Health
30
IncludeHealth
12
Watchlist
?
9am.health

Diagnostic Tools

?

Disruptors

?
Funding in USD Millions
AliveCor
154
Viz.ai
152
Eko
96
Theator
19
Pearl
11

Population Health Management Solutions

?

Disruptors

?
Funding in USD Millions
VillageMD
491
Stellar Health
75
ClosedLoop.ai
48
Socially Determined
11

Passive Remote Monitoring Platforms

?

Disruptors

?
Funding in USD Millions
Cue Health
Public - Market cap USD 1.4 bn
Biotricity
Public - Market cap USD 154.8 mn
Movano Inc.
Public - Market cap USD 114.0 mn
Know Labs
Public - Market cap USD 61.3 mn
AliveCor
154
Biolinq
118
Eko
96
Casana
46
Aktiia
28
Catapult Health
24
Levels
12
Watchlist
?
Rhythm Diagnostic Systems
OutSense
Cardiomo Care Inc.
Clinicai
MR3Health
Toi Labs
Medipee
Medic.Life
Coprata

Oak Street Health

Oak Street Health is a value-based direct primary care provider for Medicare-eligible patients aged 65 years and above, with a focus on underserved communities. Oak Street generates the majority of its revenue (over 95%) through capitations, which is a fixed payment per patient per month, paid in advance by Medicare. Oak Street is therefore liable for medical costs in excess of the fixed payment and is able to retain any surplus created if costs are lower. The company opened its 100th center in August 2021, operated 110 clinics across the US. Oak Street Health plans to open an additional 129 centers for the full year. The company also experienced a steady increase in at-risk patients, which stood at 100,500 in September 2021.

Despite reporting a strong topline growth in 2020 (up 59% YoY to USD 883 million), it continues to report net losses (up 77% YoY to USD 183.5 million) as a result of the growth in the number of centers and an increase in additional staff. For 9M 2021, the company recorded a 64% YoY increase in revenue to USD 1 billion, while nearly tripling its operating losses to USD 272.5 million. Consequently, it estimates a midpoint revenue of USD 1.41 billion for the full year, implying a growth rate of 60% YoY. Adjusted EBITDA loss, however, is expected to increase to a range of USD 230–235 million amid rising medical costs. Beyond 2021, the company expects to receive an increase in per-patient revenue due to the higher disease burden of its at-risk patients. 

Oak Street Health commenced trading on the New York Stock Exchange in August 2020, under the ticker symbol "OSH", raising USD 328 million from the initial public offering. In October 2021, the company acquired the Rubicon eConsult platform to expand into virtual specialty care at a deal price of USD 130 million. It plans to integrate Rubicon’s eConsults platform to provide real-time specialist video visits that will be available in-person at Oak Street Centres, leveraging RubiconMD’s technology and network of 230 healthcare providers. Oak Street expects the acquisition to triple eConsults growth and reduce specialist medical costs by 10% by 2023.

Segment:
Direct Primary Care (DPC)
Total funding:
USD 105.3 million
Competitors:
Iora Health
Disruptor Funding History

Direct Primary Care (DPC):

Oak Street Health
One Medical
Cityblock Health
Carbon Health
VillageMD
Iora Health
Crossover Health
Forward
Everside Health
Tia
Eden Health
Vera Whole Health
Patina Health
Parsley Health
Rezilient Health

Digital Therapeutics (DTx):

Sharecare Inc.
DarioHealth
Omada Health
Livongo
Vida Health
Better Therapeutics
Kaia Health
AppliedVR

Specialized Chronic Care Platforms:

The Incumbents

In-house development and partnerships for tech know-how remain the most common strategies

The incumbents in the preventive care landscape are mainly established healthcare providers, who have expanded their scope to include preventive primary care in addition to their existing healthcare services. In-house developments and partnerships with tech companies remain the most popular entry strategies to the preventive care landscape. We expect leading incumbents such as Cleveland Clinic and Mayo Clinic to stand to benefit given their access to a larger patient pool and specialization in highly prevalent chronic conditions such as diabetes and heart diseases. Other incumbents that operate large drugstore chains such as Walgreens have also entered this space via partnerships with direct primary care providers.

Direct Primary Care (DPC)
Digital Therapeutics (DTx)
Specialized Chronic Care Platforms
Diagnostic Tools
Population Health Management Solutions
Passive Remote Monitoring Platforms
In House Development
M&A
Partnership
Investment

Notable Investors

No investor data is available

Funding data are powered by Crunchbase
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