When we reported on One Medical Group more than 5 years ago they were in just two cities and had a few offices. One Medical Group is now in 7 different cities and has hundreds of employees and physicians. They recently bought the virtual nutritionalist and weight loss coaching app Rise. We did a physician review of Rise last year on iMedicalApps and came away impressed.

One Medical is a primary care provider that charges an annual subscription of $99 to $199. They accept some forms of insurance, but also have a cash based model for primary care visits — $175 for initial physician visit and then $125 for subsequent visits. Most likely, One Medical Group’s highest margin of profit comes from their membership fees.  More members with less frequent visits that tie up physician time equates to better profits.

If you actually visit one of their physicians, One Medical Group has to pay the physician, the nurse, and the other large overhead fees that come with a primary care practice (although they are probably significantly more lean than the average practice).

With CMS and even commercial payers looking at value based and capitation models of care, hospitals will need ancillary services that will keep patients healthy once they are discharged. That’s why these types of telemedicine coaching services are so interesting — and why One Medical most likely bought Rise.

We interviewed the co-founder of Vida last year, another telemedicine health coaching platform.  A big part of their platform is providing patients with the support primary care physicians don’t have time to give.  There are other health platforms offering a similar type of health “coaching” experience.  The pharmaceutical company AstraZeneca is even paying for these types of coaching services in hopes to improve drug compliance and outcomes.

Hospital systems tend to be the slowest to adopt new technology platforms, but they should look at what One Medical Group does with Rise closely. If One Medical is able to show decreased health care utilization with a combination of primary care and telemedicine coaching I’m sure hospital systems would jump at emulating their model.