After months of rumors, the tech-enabled primary care provider One Medical has filed for an IPO. The company has tapped JP Morgan and Morgan Stanley to act as the lead bookrunning managers for the proposed offering.
While the stock price is not yet set, the company's SEC filing revealed that it is looking to raise around $100 million in the offering. The company plans to list itself on the Nasdaq Global Select Market under "ONEM."
One Medical is known for its hybrid care model. Its members have access to 24-7 virtual health services as well as the ability to visit brick-and-mortar clinics for care.
Currently, it has 72 primary care offices spread across the country. Individual patients can join the service for a yearly rate of $199 on top of their insurance, or employers can purchase the service for their members. In the SEC filing, the company boasts of having around 397,000 members and 6,000 enterprise clients.
WHY IT MATTERS
After a multi-year IPO lull in the world of digital health, 2019 saw multiple health tech companies go public. Notably chronic care management company Livongo and workflow management company Phreesia made the plunge into the public arena this summer.
However, it’s still early days for these companies on the public stock exchange.
“Once you go public you are in it for the long haul,” Sean Day, a research analyst at Rock Health, told MobiHealthNews in an October interview discussing the recent IPOs. “I think the interesting questions are around how will public investors value these companies. At the moment a company like Livongo, they’re not a pure software company, they’re not a pure healthcare company. They’re an interesting new blend of scaling human providers and coaches to deliver care with technology.”
THE LARGER TREND
Overall, the digital health industry is continuing to see the growth and emergence of hybrid telehealth and brick-and-mortar clinics.
For example Emilio Health, a pediatric behavioral health startup, announced its new services which will include brick-and-mortar clinics with specialty services including occupational therapy and behavioral specialists. The startup is also incorporating a digital platform, which can be used to help track progress, schedule appointments and access teletherapy.
Kindbody, a women’s health startup, is another example that combines in-person visits with digital care.