One Medical, a fast-growing startup that just raised $350 million to reinvent how you visit your doctor, is betting it can 'blow this thing out nationally'

One Medical doctors

One Medical is a medical practice that charges a flat fee of $199 a year with the goal of making doctor's visits easier for patients.
On Wednesday, the company said it had raised up to $350 million from private equity firm Carlyle Group.
The private company, which got its start in 2007, is now in its second decade and is working on expanding its presence in the US and its work with employers.
"Where we're going in our next decade is to blow this thing out nationally," CEO Amir Dan Rubin, who joined the company in August 2017, told Business Insider.

In the exploding world of healthcare technology startups — especially those working to improve visits to doctor's offices — few have been around for more than a decade.

Cue One Medical, a company founded in 2007 that charges a flat fee of $199 a year for its services. Members still use their insurance during their visits to One Medical-run clinics, but the fee covers additional services such as mobile communication with One Medical staff members and mobile prescription renewals. Members can also book appointments online, including last-minute visits.

One Medical got its start in 2007 in San Francisco and has since expanded its clinics into nine cities, including three offices in San Diego coming in 2019. On Wednesday, the company said it had raised up to $350 million from private equity firm Carlyle Group.

One Medical's CEO Amir Dan Rubin, who came on board in August 2017, told Business Insider that the funding will be used to ultimately double the reach of One Medical's offices.

A healthcare veteran, Rubin had previously led Stanford Health Care and was working as the head of UnitedHealth Group's Optum division before joining One Medical. The company's "transformational" model of primary care got him excited.

"This can actually change healthcare at scale," Rubin said.

Now more than 11 years in, the company has big plans for its second decade.

"Where we're going in our next decade is to blow this thing out nationally," Rubin said in a July interview.

That includes growing in three ways: working with employers, expanding geographically — like moving into San Diego — and working with health systems.

Rubin said the company had been increasing its efforts to sign up employers and grow that business over the past two years. Historically, One Medical marketed directly toward consumers, a lot of which took place via word of mouth. So far, about 1,000 employers have signed on to offer One Medical as a benefit.

Under that system, employers cover One Medical's membership cost and consumers can opt in.

For many Americans, their employers are the ones picking up the tab. More than half of the non-elderly population is covered by an employer-sponsored plan, and almost 80% of large companies are self-insured. As healthcare costs go up, employers are the ones feeling the pressure. And some are starting to get fed up.

"Employers are frustrated with the results they're seeing," Rubin said. "They've been buying all the other stuff, and it hasn't worked."

On the health-systems side, Rubin said One Medical was partnering with health plans and hospitals to offer services that go a bit beyond primary care but can often be done by your primary-care doctor.

For example, One Medical is working with obstetricians to manage some of the healthcare visits associated with pregnancy. Instead of having to go to the ob-gyn office for routine checkups, those visits could happen at a One Medical office that may be closer to get to. Rubin said the company was also working on similar partnerships in sports medicine and therapy.

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