As Uber and Lyft have transformed the transportation industry led by technology, startups are quickly transforming our healthcare system with technology in order to be more on-demand and to reduce required time in a medical facility. The investment focus on on-demand healthcare is enormous, as Accenture estimates $1Bn in venture capital investments will go to on-demand healthcare this year. Additionally, the United States has a shortage of primary care doctors, while demand is soaring. Out of several competitors, one stands above the rest as best positioned to dominate the tech-enabled primary care and capture the benefits of the two trends cited above, combining a strong mobile offering with high-end physical primary care locations that reduce cost while offering a wide variety of services.
One Medical Group is the national leader of technology-enabled primary care currently and is well-positioned to continue leading the market by taking advantage of being the first-mover and as a result has more physical locations and more funding than other startups in the space. One Medical offers high-end primary care facilities combined with a mobile app that allows for booking same-day appointments and mobile treatment of patient’s needs. In addition to paying a co-pay for insurance, One Medical charges its customers a $150-$200 annual membership fee to access all locations. While providing value through high-quality offices and on-demand service in the mobile app, One Medical is also able to reduce its operating costs; CEO Tome Lee disclosed that the company’s technology provides “10x the service at about a third of the labor cost” for primary care. This efficiency allows the company to scale more quickly even though it has physical locations. Beyond providing value to patients, One Medical is also highly appealing to physicians, as the mobile technology allows frequent touch points with patients. An important reason cited for a shortage of primary care physicians in the U.S. is that they are burned out and frustrated about the limited time with patients and lack of ability to see progress. Thus, One Medical is able to offer strong value to both sides of its platform to build scale more quickly.
One Medical has the ability to continue dominating this growing market as a result of being first in the space and by focusing both on technology and physical locations. With $180 million in funding to date, One Medical is one of the most funded on-demand companies in history, allowing the company to invest in its mobile technology and open more physical locations. With 50 locations in seven U.S. markets, One Medical has more location than any competitor currently, including Iora Health and Forward. Moreover, by having physical locations that offer important services such as blood testing, One Medical has significant competitive advantages over telemedicine providers such as TelaDoc and American Well that do not offer physical locations. That does not mean that competitive threats are weak, technological advancements in mobile healthcare offerings will continue to be the driver of more value creation and consumers will seek out companies that can offer the widest variety and highest quality of mobile healthcare offerings to reduce the time needed in a doctor’s office. One Medical will need to continue to invest in its technology and expand the health-related services provided in its mobile app to stay ahead of the competition, which it is well positioned to do with the most funding and greatest number of physical locations across the U.S.