One Medical (Nasdaq: ONEM) seeks to woo potential payer and employer clients by expanding its behavioral health offering.
Executives with the San Francisco-based hybrid primary care provider said the new behavioral health offering it rolled out in the first quarter — Healthy Mind — deepens its capabilities in value-based care. This, along with additional chronic care offerings and its expanding medical offices, gives it a true one-stop shop for value-based care primary care.
Healthy Mind focuses on mental well-being and resilience. It combines primary care visits with cognitive testing, wellness coaching, and support from a therapist as needed, One Medical CEO and Chairman Amir Dan Rubin said on the company’s May 4 first-quarter earnings conference call.
The new program is an expansion of Mindset by One Medical. The company announced the launch of the virtual-first behavioral health service in April 2020. One Medical said Mindset would offer a combination of coaching, group sessions and therapy within its primary care service.
“Accordingly, we are demonstrating with these programs — just as we’ve demonstrated with our Impact program for diabetes and chronic conditions and our other Mindset behavioral solutions — that a differentiated, modernized hybrid model of longitudinal primary care can deliver outsized impacts for better health and better value,” Rubin said.
Overall, the company generated $254.1 million in revenue during the first quarter, beating a Zacks Consensus Estimate of $247.4 million. Revenue increased 109% year-over-year. Its net loss ballooned 131% to $90.9 million year-over-year, or a loss of 47 cents per share. The Zacks Consensus Estimate projected a loss of 49 cents.
One Medical, incorporated as 1life Healthcare Inc., provides primary care services via clinics and all-hours telehealth. It charges membership fees that patients pay directly or are covered by employers to get access to its care.
The company also partners with Medicare Advantage plans and directly with the Centers for Medicare & Medicaid Services to manage the health of seniors in exchange for risk-adjusted per-member per-month payments.
One Medical hopes to sell employers that it’s able to drive greater “self-efficacy and engagement” with Healthy Mind and Mindset, Rubin said, adding that an unspecified employer who deployed Healthy Mind saw an average 52% increase in health confidence scores among participants.
“We believe we have just such a differentiated approach here,” Rubin said during the Q&A portion of the conference call. “It’s not a single point solution. … It’s aligned to primary care — it’s helping on heart health and managing cholesterol and managing not just behavioral health, but overall resilience, or as we’ve talked about in the past, showing we can take down the cost of care as well. ”
Several thought leaders in the behavioral health space and other health care spaces have previously said companies that offer narrow point solutions could risk being edged out of the competition by platforms with more services or could be prime M&A targets for companies seeking that edge in the marketplace. This is especially true in the B2B market
Also, 2020 and 2021 saw massive amounts of capital poured into mental health companies, especially startups. This, in turn, pumped up expectations for swift growth, potentially laying the ground for “platform wars,” or an era of fierce consolidation.
The behavioral health space has seen a major shift toward telehealth. However, leaders in the space are still expanding care locations, betting on the likelihood that patients will demand a hybrid approach to care.
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