Preventive Healthcare

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

Overview

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 that houses 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.

Industry Updates

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Market Sizing

The US Preventive Healthcare market could reach USD 55.7 billion–75.9 billion by 2028

Conservative case

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Base case

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Expansion case

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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)
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Digital Therapeutics (DTx)
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Chronic Care Management
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Diagnostic Tools
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Population Health Management Solutions
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Passive Remote Monitoring Platforms
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BioIntelliSense
BioIntelliSense
BioIntelliSense
BioIntelliSense
BioIntelliSense
BioIntelliSense

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.

Funding History

Competitive Analysis


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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.

In House Development
M&A
Partnership
Investment
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Notable Investors


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Market Sizing

The US addressable market for Preventive Healthcare is USD 216.5 billion

The total addressable market (TAM) refers to the total revenue opportunity available for a product or service, while the actual market is the market size based on revenue projections. Preventive healthcare is mainly targeted at Americans above 30 years of age, as they are more susceptible to developing chronic conditions and adjusted to affordability depending on insurance coverage, willingness to share personal health data, and the percentage of the population taking proactive measures such as regular health checkups. Based on this, the TAM for preventive healthcare in the US is estimated at USD 216.5 billion.

Summary

Our conservative case estimate assumes slower awareness of the long-term benefits of preventive care and/or slower adoption and coverage of preventive care among employers and health plans, leading to a CAGR of 23% and reaching a market size of USD 55.7 billion by 2028. Our expansion case expects a CAGR of 30.9%, with the market size reaching USD 75.9 billion by 2028, likely supported by higher growth in preventive care take-up and usage.

Appendix

 The estimated addressable market for preventive healthcare in the US was USD 254 billion, which was calculated after taking the following key factors into account:
  • The total adult population of 30 years and above 
  • Share of population with insurance, including private and public (Medicare and Medicaid) coverage
  •  Willingness to share personal health data
  • Share of population that takes proactive measures to improve health 
  • Preventive care services are charged on an average per member per year 

TAM: Preventive Healthcare

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