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1 Big Thing: Freshly Supported Everside Health Repels Openings
Upside down health fielded numerous strategist inquiries in the wake of Amazon’s primary care splash, but CEO Chris Miller told Sarah at a virtual Axios Pro event this week that his freshly funded company was “not in no rush to sell.
Why is this important: Primary care players continue to garner attention, but the market has shifted from prioritizing skyrocketing growth to focusing on profitability – and Everside is following suit.
Catch up fast: Everside scrapped IPO plans and hauled in $164 million in NEA-led funding this summer.
Enlarge: The company is well positioned to reach profitability in 12 to 18 months, Miller said, noting the minimal capital requirements its model requires to open new clinics.
- “I think it also gives us a pretty clear advantage over some of these large public companies that are losing, frankly, quite a bit of capital,” Miller said. In addition, the ability to be well capitalized in this space allows him to “play a little more in attack than in defence”.
- Everside expects organic growth of 25-30% year over year, he adds.
What they say : Miller sees Amazon’s acquisition of One Medical as an industry benefit — not a competitive threat to his Denver-based company, which is fast approaching 400 health centers.
- “We appreciate that more individuals and customers – and frankly some large retailers and payers – are paying attention to the results that can be achieved through value-based care.”
And after: A sale may not be on the table, but Everside is exploring a number of business opportunities with big payers, and even a few retailers, Miller says.
- The goal is to be a one-stop-shop and full-cost provider of care for its clients, having already begun to expand beyond primary care and into mental health and occupational therapy.
- “We look at each vertical as part of a build-by-partner strategy,” which could include partnerships in specialties such as MSK. But, he adds, “one of the reasons we recently raised $164 million was to be open to mergers and acquisitions.”
- Clients, for example, ask Everside to provide dental and vision services, Miller notes.
The context: Everside and One Medical, although both primary care providers cater directly to employers, are not direct competitors at this time, according to Miller.
- Everside’s “sweet spot” is blue-collar America — unions, manufacturing companies and school districts, for example — while ONEM’s D2C model prioritizes big cities and employers.
- “Frankly, it’s the patients who really need much better health care,” Miller says. Likewise, they are employers who “desperate to save money on health care…it’s a need rather than a benefit.”
- Everside, which also does more in the Fortune 200/Fortune 500 space, is unique in its scale, with nearly 400 health centers in 34 states.
- Miller boasts of saving clients 17% in year three and 31% in year five, and is eager to get to the point of eventually taking the risk.
The big picture: “There are 110 million Americans getting their insurance through self-insured employers right now, and we’re serving 1.6 million lives. So we have plenty of room to continue to grow. We believe that every American needs this type of service.”