Meet the 7 companies changing how doctors get paid and building the future of medicine
- Investors are pouring millions into companies looking to shake up the way patients go to the doctor's office.
- Over the past few years, models like venture-backed Iora Health, family-owned ChenMed, and private-equity-backed Oak Street Health have picked up steam in their approaches to caring for elderly Americans, boosted by the growth of private Medicare plans.
- At the same time, companies like One Medical have made a name for themselves as a more convenient way to see a doctor for the price of a $200 annual fee.
- Read on to see how each of the startups is shaking up the the traditional way that doctors take care of patients.
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In the past few years a crop of companies has been gaining steam with new approaches to primary care.
Rather than getting paid for each visit or procedure that a patient needs, startups are looking to change the way primary care is practiced, in many cases working to get paid a large fixed sum each month to take care of all of a patient's health needs.
In many cases, that means seeing fewer patients a year - hundreds, rather than thousands - offering additional services, or making the process of getting an appointment more convenient.
And others are taking note. For instance, health systems including Utah-based Intermountain Healthcare and Pennsylvania-based Geisinger are taking similar approaches with some of their primary care doctors. The federal government is planning to pay for care for some Medicare patients in a similar way, too.
Venture capital and private equity investors alike have taken an interest in the model, pouring hundreds of millions in funding into some of the companies.
The rise of some of these models - in particular venture-backed Iora Health, family-owned ChenMed, and private-equity-backed Oak Street Health - comes at a time when the market for Medicare Advantage plans has grown increasingly competitive.
As of last year, more than 20 million Americans were enrolled in private Medicare Advantage plans. People can typically choose to enroll in Traditional Medicare or Medicare Advantage plans when they turn 65. Either way, their health needs are largely funded by the US government.
Read on to see how the startups are shaking up the the traditional way we do primary care.