Review of Systems: A One Medical S-1 Teardown

This week, One Medical (Nasdaq: ONEM) will be the first “next-generation” primary care company to enter the public markets. Others have been growing quietly–but steadily–under a wave of private financing (Oak Street, Iora, Firefly, ChenMed, Forward, Cityblock, arguably Oscar) or have been acquired (CareMore, acquired by Anthem). I’m a big believer in redesigning health care delivery and applying novel financial models and technology to improve the way patient’s receive care, and One Medical’s pioneering role in this space is worth dissecting.

With a wave of brick-and-mortar (read: low gross margin) startups facing questions about their SaaS-multiple IPO valuations (e.g. WeWork, Casper, SmileDirectClub, Peloton), I was curious if the same investor dynamic and scrutiny held up for a health care company.

One Medical’s S-1 opens with their vision to “delight millions of members with better health and better care while reducing the total cost of care.”

Do their numbers stack up to their vision?

Let’s start with the basics first:

Forty-five percent of 18–29 year olds don’t have a primary care physician, and most often cite the reasons as inconvenience and opaque prices. One Medical, whose value-add to members is convenience, serves as an attractive…