One Medical, the venture-backed primary care group with 60 clinics nationwide, has tapped an executive from health insurance giant UnitedHealth Group to be its new CEO.
Amir Rubin, the executive vice president and CEO of Optum, a division of UnitedHealth, was named to the top post on Tuesday, One Medical told CNBC. Tom X. Lee, who founded One Medical and ran the company for a decade, will stay on as executive chairman.
Rubin said that he intends to spend his first few months building out the business by opening new clinics and signing up more corporate customers. One Medical sells memberships to individuals as well as to companies that offer its primary care service as a benefit.
“We have seen a tremendous (revenue) growth in our corporate relationships,” Rubin said in an interview.
Individual members pay an annual fee of $149 to $199 and get access to same-day appointments that they can book online or with the mobile app. Corporate rates vary based on the number of employees and the extent of their benefits.
Rubin, who was previously the CEO of Stanford Health Care, expects the enterprise business to become a bigger part of One Medical’s overall revenue. One way the company is attracting large employers is by opening small clinics on corporate campuses, similar to a model used by start-ups like Crossover Health.
One Medical has raised more than $180 million in financing from investors including Benchmark and Alphabet’s GV. In addition to online scheduling, the company offers a virtual medical team, a suite of mobile apps and has built its own electronic medical system.
Rubin has no immediate plans to raise further rounds of financing even with the company’s “ambitions for continued growth.”
Rubin didn’t rule out future acquisitions of digital health start-ups. In 2016, the company bought Rise, a nutrition coaching app, to bolster its digital medicine offerings. Rubin also said he “doesn’t anticipate” a sale to a major health system, despite a clear trend in the market towards consolidation.
The company declined to share its valuation, though it’s reportedly worth at least $1 billion.
Source: Tech CNBC
UnitedHealth exec takes helm at One Medical to reinvent the doctor's visit