Google Ventures Invests 30 Million into Concierge Medicine with One Medical Group

Google Ventures Invests 30 Million into Concierge Medicine with One Medical Group

by Ki Mae Heussner, on Gigaom.com MAR. 22, 2013

Startups offer all sorts of digital health products and services but One Medical Group is using health technology to power an entire health care practice. On Friday, the company said it had raised $30 million in a Series F round that brings its total amount raised to $77 million.

Google Ventures led the round and previous investors, Benchmark Capital, DAG Ventures, Oak Investment Partners and Maverick Capital, also participated.

Founded in 2005 by MD-turned-MBA, Dr. Tom Lee, One Medical Group aims to bring concierge medicine to the masses. In addition to more personalized care and same-day visits, patients can book appointments, renew prescriptions, check lab results and see their medical records online, as well as exchange email with their doctors.

“We’re trying to make health care work and we think we can do that by building a stronger system… and using technology that lets doctors interact thoughtfully with patients to manage their health,” said Lee.

More health technology companies are beginning to provide these kinds of solutions to doctors: ZocDoc enables online appointment booking and checkins and Ringadoc supports on-demand video and phone calls with doctors. But One Medical Group provides a holistic view of what the future doctor’s office could look like.

In line with recent health care reform legislation, the company is focused on improving patient outcomes with a model that enables more face time with physicians, as well as the ability to communicate with them digitally. Helped by technology, the company says it has cut administrative support from 4 people per office to 1.5, meaning it has extra money to put towards supporting the patient-doctor relationship. At a typical primary care office, doctors see 25 to 30 patients a day, for 5 to 7 minutes each, but One Medical Group said its doctors see 16 patients a day for an average of 20 minutes each.

Since launching, the company has relied on venture funding and declined to share information on its membership and profitability. But in addition to expanding into new markets (it now has 23 locations in San Francisco, New York, Boston, Washington, DC and Chicago), it’s beginning to explore an additional business model. To date, it has added patients directly — it accepts most insurance plans but patients pay $150 to $200 for an annual membership — but Lee said they’re in final discussions with several employers to offer One Medical Group as a full benefit or as one of other options.

With the new funding, he said, the company will invest in new markets, improvements to its technology and relationships with employers and health plans.

READ FULL STORY

http://gigaom.com/2013/03/22/one-medical-group-raises-30m-led-by-google-ventures-for-the-doctors-office-of-the-future/

About Concierge Medicine Journal

Concierge Medicine Journal (CMJ) curates breaking concierge medicine news, and editorial opinion on a wide variety of topics relevant to the practice of Concierge Medicine.

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