Direct-to-consumer virtual health company Hims & Hers has signed a deal with hybrid healthcare provider Carbon Health in an effort to offer its customers in California a physical healthcare option.
As part of the deal, Hims & Hers clinicians can connect patients in California who need additional primary care † due to a complex medical history or certain risk factors † to Carbon Health. Hims & Hers currently has a number of supplier relationships, including seven states and DC
“Partnering with high-quality providers like Carbon Health to expand healthcare 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 healthcare options, we continue to build a platform that can be a one-stop shop for a new generation of consumers who desire a modern, easy-to-use, one-touch access to high-quality care possible.”
WHY IT MATTER
Primary care is changing rapidly and is becoming increasingly digital. All in all, fewer and fewer patients have one GP. According to an According to the Blue Cross Blue Shield report, only 68% of Millennials have a primary care physician, compared to 91% of Generation Xers.
“People who still say primary care and expect that kind of holier-than-thou person who comes off 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 for his work with Athena, Firefly and Zus, told MobiHealthNews in October. “I think someone who says, ‘Don’t worry about primary care. This is care. This is every care.’ †
THE BIGGER TREND
Investor’s darling Carbon Health took in a whopping $350 million last summer, bringing the total valuation to $3.3 billion. The company has also grown through mergers and acquisitions. The company acquired Alertive Healthcare, a remote patient monitoring company, in October, an 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 originally launched in 2017 with a focus on men’s sexual health and well-being. Since then, it has expanded its healthcare offerings to include: women’s health, diets, skin care, mental health, COVID-19 testing and other areas.
In January 2021, the company went public for $280 million SPAC merger with Oaktree Acquisition. However, the stock has struggled since it hit the public markets.