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 50.4 billion–68.8 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 expansion 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 go-to-market or minimum viable product stages.

Incumbents
Expansion
Go-to-Market
Minimum Viable Product
Ideation
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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.

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Partnership
Investment
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Notable Investors


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Overview

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 AI algorithms to predict and warn patients and healthcare providers of potential health issues.

The key enablers of new preventive care technologies are wearable device penetration and big data

Wearable device penetration to increase in the US

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 preventive health solutions for individuals and corporate clients to mitigate the risk of numerous prevalent conditions.
Approximately 2 million (0.6% of the US population) new cancer cases are expected to be diagnosed in the US in 2024, reflecting a 2.2% increase from 2023. In 2023, 9.7% of adults aged 18 and over were diagnosed with some type of cancer in the US. Diabetes affects 11.6% of the US population (2021), and the prevalence of cardiovascular disease (comprising coronary heart disease, heart failure, stroke, and hypertension) in adults 20 years and above is 48.6% overall (2017–2020).

The shift from reactive care to preventive care

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