Direct-to-consumer virtual health company Hims & Hers inked a deal with hybrid care provider Carbon Health in an effort to provide its clients in California with a brick-and-mortar care option.
As part of the deal, Hims & Hers clinicians will be able to connect patients in California requiring additional primary care services – because of complex medical histories or certain risk factors – to Carbon Health. Hims & Hers currently has a number of provider relationships, which includes seven states and D.C.
“Partnering with high-quality providers like Carbon Health to expand care options through our platform is a fundamental aspect of our strategy to transform the way healthcare is delivered,” Hims & Hers Chief Operating Officer Melissa Baird said in a statement. “By expanding both digital and in-person care options, we’re continuing to build a platform that can be a one-stop shop for a new generation of consumers that are yearning for a healthcare delivery system that is modern, simple-to-use, and enables access to high quality care at the touch of a button.”
WHY IT MATTERS
The primary care space is rapidly changing and becoming more digital. As a whole, fewer and fewer patients have one primary care doctor. According to a Blue Cross Blue Shield report, only 68% of millennials have a primary care physician, compared with 91% of Gen Xers.
“People who still say primary care and expect that sort of holier-than-thou person who comes in from work every year to get birth control and a pap smear, I think they’re going to lose,” Jonathan Bush, a digital health vet known for his work with Athena, Firefly and Zus, told MobiHealthNews in October. “I think someone who’s saying, ‘Don’t worry about primary care. This is care. This is any care.’ ”
THE LARGER TREND
Investor darling Carbon Health raked in a whopping $350 million last summer, bringing its total valuation to $3.3 billion. The company has also been growing through M&A. The company scooped up remote patient monitoring company Alertive Healthcare in October, integrated diabetes care platform Steady Health in June and two major clinic chains, Southern Arizona Urgent Care and Med7 Urgent Care, in August.
Hims & Hers was initially launched in 2017 with a focus on men’s sexual health and wellness. It has since expanded its scope of care to include women’s health, dieting, skin care, mental health care, COVID-19 testing and other areas.
In January 2021, the company went public through an $280 million SPAC merger with Oaktree Acquisition. However, its stock has struggled since hitting the public markets.