Primary care startup One Medical raises $40 million, plans more clinics
FORTUNE — One Medical Group, the San Francisco primary care startup specializing in high-quality patient clinics, has raised $40 million in funding, bringing its total financial backing to $117 million, Fortune has learned. The latest round was led by Redmile Group, with participation from current institutional investors Benchmark Capital, Oak Investment Partners, and DAG Ventures.
According to CEO and founder Tom X. Lee, the funding will be used to open more clinics across the country — at least one more is scheduled to open this year in San Francisco. The money will also be used to invest further in One Medical’s iOS and Android mobile apps, and the company is expanding its enterprise program nationwide so any employer can enroll and offer One Medical Group’s service as an employee benefit. Currently, 60-plus organizations offer the startup’s services, including NBCUniversal, Adobe ADBE, Uber, and Quantcast.
Lee, a doctor of internal medicine, founded One Medical Group in 2007 after realizing that going to the doctor was a broken, inefficient experience. Doctors weren’t spending enough time with patients, patients were feeling herded along and rushed, and primary care groups weren’t taking advantage of newer technologies to improve the doctor-patient relationship.
So with $3.5 million in early funding from Benchmark, Lee set about designing and executing a better primary care experience. Six years later, One Medical has over 150 health care professionals across 27 locations later in Boston, Chicago, Los Angeles, New York, San Francisco, and Washington, D.C. Patients pay an annual fee of between $149 and $199 and receive access to a primary care experience that Lee says is “much more thoughtful about the patient’s needs from a quality, care, and convenience perspective.”
To wit, “perks” of the service include the ability to schedule day-of appointments, request prescription refills, and seek treatment for common ailments, such as seasonal allergies via a mobile app; patients can also select their providers and fill out paperwork ahead of time online. And all patient records are electronic.
The actual doctor’s visit is also less rushed thanks to a better doctor-to-patient ratio: One Medical providers see at least 35% fewer patients daily than their typical counterparts. Adds Lee: “It’s about being able to have longer discussions around your health issues in thoughtful detail with someone who’s a helpful advocate vs. someone [who is] overly dogmatic.”