Andrew Dudum, Hims & Hers, on disrupting healthcare by reimagining the patient experience

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Andrew Dudum, Founder & CEO of Hims & Hers

In this episode, we interview Andrew Dudum, the Founder & CEO of Hims & Hers. Hims & Hers is a digital health company focused on destigmatizing health and wellness conditions while making it easier for everyone to access quality care. Since launching in November 2017, Hims & Hers has raised approximately $260MM in funding from investors including Oaktree Capital, Maverick, IVP, among others, and is poised to IPO via SPAC this year. Hims & Hers is one of the fastest growing direct-to-consumer healthcare brands to date.

Key topics we discussed:

• How Hims & Hers disrupted the ~$4 trillion healthcare industry by creating a telehealth offering that brings quality, access, and affordability to more Americans while building a brand consumers love
• How to improve the American healthcare system, beginning with getting primary care right and providing a quality healthcare safety net to all Americans
• Reflections on the personal and economic benefits of investing in personal health and pursuing work you truly enjoy

Start to 7:20: An early start in entrepreneurship

• The first gig: Playing his cello all over the world was one of Andrew’s first forays into entrepreneurship. While he did not realize his childhood dream of becoming a rock and roll star, Andrew was able to pay for his first car through a combination of donations from performances at San Francisco’s Union Square and charging for weekend gigs at weddings. Andrew owned the end-to-end process of running this business, from identifying customers to setting the price of shows and managing the finances. This experience helped him gain the confidence to run his own business.
• Grit runs in the family: Andrew comes from a family with a history of charting their own career paths. His father started his own law practice and out-negotiated Ivy League attorneys to win business. Both of his grandfathers started successful businesses from nothing. Growing up in this environment, Andrew was inspired to also build his own career path outside of traditional tracks.

“In the background, a healthy disregard for authority has always existed in my mind… I was surrounded by mentors that were their own bosses. They had the confidence that they could pull it off, and a traditional path was never given to them. As a result, they created their own path. I had a chip on my shoulder to prove it to myself that I could do the same thing, and this has always been with me.”

7:20–20:00: The beginning and evolution of Hims & Hers

• The opportunity: Andrew’s ambition to disrupt an established industry found a match in healthcare, a $4 trillion market that has operated largely the same for the past several decades. Reflecting on his personal experience in the healthcare system, Andrew quickly realized there was a large opportunity to improve the current patient experience and enable more individuals to be healthier. The mission of improving healthcare outcomes for millions of people combined with the excitement of shaping an enormous industry propelled Andrew’s interest in starting Hims & Hers. The launch of Hims & Hers was accelerated through Atomic Labs, a studio and venture fund in San Francisco that supplies small teams with seed funding to build innovative new companies.
• The offering: Hims & Hers began as an offering called “hims” targeted at de-stigmatizing sensitive health issues for men, such as erectile dysfunction and hair loss. Since then, “hims” has added a platform called “hers” to address health concerns for women in a joint company called “Hims & Hers.” Today, Hims & Hers offers access to world-class specialists, treatments, and medications across a wide range of medical concerns including mental health, dermatology, primary care, and sexual health to help individuals become healthier versions of themselves.
• Building a brand: Andrew noticed the distinction between products that people enjoy, and products people fall in love with. In designing the Hims & Hers offering, Andrew was intentional about creating a brand that would resonate with people in a way that traditional healthcare has not. In contrast with the standard set of impersonal options consumers currently have, Hims & Hers is aimed at curating an individualized experience for patients to conveniently access quality care in a personal way. The difference is palpable in the Hims & Hers packaging, advertisements with J. Lo and Snoop Dogg, and sleek website, social media, and other user interfaces.
• Gaining trust with consumers: Building trust and credibility with consumers is core to creating a viable healthcare offering, especially for a telehealth company that was established before COVID-19 spurred an increase in telemedicine adoption. Traditionally, healthcare companies gained credibility with consumers by touting physician credentials and FDA approvals. Hims & Hers employees and products have similar credentials, but the company instead chooses to emphasize its focus on delivering effective products and services to earn consumer trust. Andrew believes this approach has helped differentiate Hims & Hers from competitors.
• Price transparency and affordability: Hims & Hers does not accept insurance and purposefully prices its offerings so people who lack health insurance or have high out-of-pocket premiums are still able to access care; thus, all consumers pay “cash” for products and services. Instead of finding savings within the current healthcare system, Hims & Hers is almost fully vertically integrated, reducing markups from third-party distributors along the value chain to the consumer. The company also has a lower cost structure relative to traditional providers given its lack of a brick-and-mortar presence. The company passes these cost savings back onto the consumer. As a result, offerings on Hims & Hers typically range between $20 — $40 per month.

“When I look at healthcare, there’s no part of the experience that I love. It’s a cold experience, it’s not personalized to you at all, it wastes your time and your money, and it makes you feel sick. It’s my belief that in the next 10 years, that’s going to change. People are going to put their money towards and brands and experiences they love.”

20:00–37:30: Outlook on the American healthcare system, impact of COVID-19, and what’s next

• Shifting winds in healthcare: For the past 5–10 years, there has been a growing delta between patients’ expectations of healthcare and the reality they experience. In particular, younger generations are seeking a healthcare experience that is digitally native, fully transparent, and on-demand. While COVID-19 has accelerated the winds of unrest, consumer dissatisfaction with the way healthcare is dispensed in America has been a tailwind for the innovation telehealth companies like Hims & Hers is providing.
• On navigating the regulatory landscape for telehealth: Improving the health outcomes of Americans has largely been a bipartisan issue. Given the relative nascency of telehealth offerings, the Hims & Hers team worked with state legislators, Attorney Generals, and state medical boards to demonstrate the clinical efficacy of the telehealth model. Not only can digital health better track patient data, but it also enables individuals living in healthcare deserts to be treated by specialists all over the country. The lowering of out-of-pocket prices, especially for those without insurance, has also lowered barriers to access. This expansion of accessibility has enabled millions of patients to interact with a healthcare system they may not have engaged otherwise.
• Opportunities for improving healthcare in America: Providing high quality healthcare for all Americans is a high-impact policy goal that is critical for maintaining a standard of life on par with citizens in other wealthy developed nations. COVID-19 has exposed the gaps in the current U.S. healthcare system, where many individuals who lack formal employment status fail to receive the care they need, often waiting until a severe adverse healthcare outcome occurs before seeking medical care. The specific policy avenue through which universal healthcare is achieved (e.g. Medicare for All, a public option through the Affordable Care Act) matters less than creating options for Americans to access healthcare that is not employer-based.

“Every other major established country in the world has guaranteed safety nets of basic healthcare for their populations, except the United States. A safety net for all people, regardless of their employment status, has to exist. And it has to be a high-quality safety net. An employment-based care program where you are entirely dependent on being covered by your employer is incredibly dangerous for everybody.”

• Getting primary care right first: Currently, the divergence in the quality of primary care Americans receive is vast. 80% of rural counties in America lack primary care physicians within a 1–2 hour drive from residents. A critical step towards curing America’s healthcare ailment is to focus on providing quality primary care. Later, care models can focus on prevention and holistic care.
• Move to a remote-first model: Hims & Hers has decided to adopt a remote working model for the duration of the company’s lifecycle. This has expanded talent options in the hiring process, given employees can be sourced from around the globe. While Hims & Hers must figure out how to maintain team unity and knit a collective culture, the remote first model has enabled access to more diverse talent the company hopes will bring advantage in an increasingly competitive market.
• The impact of COVID-19 on its offerings: When COVID-19 first broke in the U.S., Hims & Hers mobilized employees to develop new products and services to meet the growing need for virtual and at-home care. In partnership with Rutgers University, Hims & Hers provided access to one of the first FDA-approved at-home saliva tests for COVID-19. Hims & Hers also introduced primary care services to its platform, enabling people to access quality care for conditions ranging from cold and flu, to rashes and pink eye, from their homes. The company also launched — and has since expanded — its virtual behavioral health services and treatments to support the increase in depression and anxiety cases being seen nationwide.
• On the IPO and what’s ahead: Taking Hims & Hers public has been a goal for the company given its high margins, rapid growth, lack of capital intensity, and unique product-market fit. The IPO will fuel the momentum Hims & Hers has already built as the company continues to push forward on its vision of becoming the trusted brand for quality, affordable and accessible healthcare treatments for all.

37:30 — End: career lessons and opportunities to work at Hims & Hers

• Invest in what you love doing: Andrew observes that those who succeed often do so because they enjoy what they do. True enjoyment unlocks a different quality of work, level of drive, and degree of grit that better enables individuals to build something unique.
• Balance is key: To juggle their demanding jobs, Andrew and his wife ensure they create time to eat right, sleep well, and prioritize overall health and wellbeing. Their experiences have demonstrated the direct economic benefits of investing in personal health.
• On the culture at Hims & Hers: The Hims & Hers team is composed of smart people united by passion for the healthcare they deliver to millions of Americans every day. The leanness of the teams also creates opportunities for greater autonomy and responsibility. Hims & Hers encourages an attitude of “anything is possible, it’s just about figuring it out.”
• Traits of successful employees at Hims & Hers: Grit, innovative thinking, dedication, and perseverance are attributes that will enable successful candidates to thrive in the fast-paced environment at Hims & Hers.
• Advice for our listeners: Reflect on the direction you are going in your lives and careers. COVID-19 has injected new levels of flexibility with regard to work and lifestyles. While this may not necessitate an overhaul of your current position in life, take this as an opportunity to check in to make sure you are oriented in the right direction to spend time on the things you value.

“Hims & Hers has proven that most standards can be broken. Most things that are expected don’t have to end up that way. Most practices are best practices because nothing better has come up yet.”

For more information about hiring opportunities at Hims & Hers, please go to boards.greenhouse.io/himshers.

Andrew Dudum, Hims