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?

Industry Updates

Wefight raises additional EUR 10 million in seed funding
Sep 20
9am.health raises USD 3.7 million in seed funding
Sep 20
Tia raises USD 100 million in Series B funding
Sep 14
View all updates
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

USD billion01020304050607080202020212022202320242025
View details

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
Cleveland Clinic
Mayo Clinic
Premise Health
Walgreens Healthcare 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
Rezilient Health
Sharecare Inc.
Omada Health
Livongo
AppliedVR
Index Health
Hinge Health
Virta Health
Glooko
Signifier Medical Technologies
AliveCor
Eko
Pearl
Theator
VillageMD
ClosedLoop.ai
AliveCor
Eko
Catapult Health
Biotricity
Cue Health
Know Labs
Casana
Movano Inc.
Levels
Rhythm Diagnostic Systems
Nanowear
MR3Health
Cardiomo Care Inc.

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 11.3 bn
One Medical
Public - Market cap USD 4.2 bn
Cityblock Health
891
Carbon Health
523
VillageMD
491
Iora Health
349
Crossover Health
281
Forward
225
Everside Health
165
Eden Health
99
Vera Whole Health
96
Parsley Health
36
Watchlist
?
Rezilient Health

Digital Therapeutics (DTx)

?

Disruptors

?
Funding in USD Millions
Sharecare Inc.
Public - Market cap USD 2.5 bn
Omada Health
257
Livongo
235
AppliedVR
35
Watchlist
?
Index Health

Specialized Chronic Care Platforms

?

Disruptors

?
Funding in USD Millions
Hinge Health
426
Virta Health
373
Glooko
101
Signifier Medical Technologies
58

Diagnostic Tools

?

Disruptors

?
Funding in USD Millions
AliveCor
154
Eko
96
Theator
19
Pearl
11

Population Health Management Solutions

?

Disruptors

?
Funding in USD Millions
VillageMD
491
ClosedLoop.ai
48

Passive Remote Monitoring Platforms

?

Disruptors

?
Funding in USD Millions
Biotricity
Public - Market cap USD 153.7 mn
Movano Inc.
Public - Market cap USD 126.8 mn
Know Labs
Public - Market cap USD 92.1 mn
Cue Health
1000
AliveCor
154
Eko
96
Catapult Health
24
Casana
16
Levels
12
Watchlist
?
Rhythm Diagnostic Systems
Nanowear
Cardiomo Care Inc.
MR3Health

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 undeserving underserved communities. Oak Street generates the majority of its revenue (over 95%) through capitations, whereby Medicare provides a fixed payment per patient per month in advance for its services. 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, up from 54 in March 2020 when the Covid-19 pandemic hit. Oak Street Health plans to open an additional 46 to 48 centers for the full year. The company also experienced a steady increase in at-risk patients, which stood at 88,500 in June 2021. 

Despite strong growth in the company’s topline in 2020 (up 59% YoY to USD 882.8 million), the company’s operating losses widened (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. In 2021, Oak Street Health expects revenue to range between USD 1.37 - 1.40 billion, implying a growth rate of 55% to 59% YoY. Adjusted EBITDA loss, however, is expected to increase to a range of USD 220 - 240 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.

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
Eden Health
Vera Whole Health
Parsley Health
Rezilient Health

Digital Therapeutics (DTx):

Sharecare Inc.
Omada Health
Livongo
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.

Product development

Acquisition

Investment

Partnership

Cleveland Clinic
check
Mayo Clinic
check
check
check
Premise Health
check
check
Walgreens Healthcare Clinic
check
check
Milliman
check
check
Cleveland Clinic

Cleveland Clinic, an accountable care organization established in 1921, is one of the top five hospitals in the US. Cleveland Clinic has 18 hospitals, 4,500 physicians and scientists, 17,000 nurses, and approximately 1,900 residents and fellows globally. The hospital ranks first in cardiology and urology in the US, and offers a wide range of other specialties. As of 2019, Cleveland had the highest number of patients and hospital beds among our incumbents; 2.4 million unique patients, 10 million outpatients, 309,000 admissions and 59,000 virtual visits with more than 6,000 hospital beds.

Cleveland Clinic provides preventative care through a value-based care model. It aims to reduce healthcare costs by managing chronic conditions proactively, reducing preventable hospitalizations, and optimizing care through services such as virtual visits.

Cleveland has been developing in-house ventures, such as Cleveland Diagnostics, which offer early diagnostic solutions for conditions such as cancer. As of 2013, Cleveland Clinic registered 1.5 million patients on MyChart, its health management portal, which allows patients to access their health records and connect with physicians. In September 2016, Cleveland partnered with Microsoft to predict patient risk of cardiac arrest using data from patient vitals and lab tests using Microsoft Azure, a cloud computing service. In March 2019, it established the Center for Clinical Artificial Intelligence to improve machine learning cancer detection.

Notable Investors

Funding data are powered by Crunchbase

By using this site, you agree to allow SPEEDA Edge and our partners to use cookies for analytics and personalization. Visit our privacy policy for more information about our data collection practices.