One Medical to Acquire Iora Health in $2.1 Billion Stock Deal
One primary care organization that describes itself as “technology-powered” is acquiring another. San Francisco-based One Medical is buying Iora Health in an all-stock transaction valued at approximately $2.1 billion.
One Medical (Nasdaq: ONEM) is a membership-based and technology-powered primary care platform that offers digital health and in-office care, with a goal of making care more convenient. In addition to direct-to-consumer memberships, more than 8,000 employers have sponsored memberships on behalf of their employees and dependents.
Boston-based Iora Health, which focuses on Medicare and Medicare Advantage patients, says its patients experience:
• Longer appointments;
• An integrated care team including doctors, nurse practitioners, health coaches and behavioral health specialists;
• Convenience, including 24/7 access to healthcare professionals by phone for urgent needs, same/next day appointments for acute appointments and onsite labs.
In addition, Iora’s proprietary collaborative care platform, Chirp, is designed so patients can schedule appointments, access their records and communicate directly with their care team electronically.
The press release announcing the acquisition described several benefits of merging the two companies: It extends One Medical’s platform to deliver multi-modal care with 24x7 national digital health and in-person care across a combined 28 markets and expands the potential market opportunity to $870 billion across commercial and Medicare segments, including the new Medicare Direct Contracting program.
“We are delighted to announce plans to combine with Iora Health, a technology-powered primary care leader delivering outstanding member-based, value-based care for adults 65+ enrolled in Medicare Advantage and other at-risk reimbursement models,” said Amir Dan Rubin, chair and CEO of One Medical, in a statement. “Together we will expand our addressable market to serve more members in more geographies with digital and in-person care across every stage of life, with further capabilities to deliver care within full-risk models. Together with Iora Health, we can deliver better health, better care, and lower costs for children, adults, and seniors.”
A designee of Iora Health will join the One Medical board and Rushika Fernandopulle will become One Medical’s chief innovation officer.
In May 2020, Baylor Scott & White Health, the largest nonprofit health system in Texas, announced a partnership with One Medical to deliver coordinated care in the Dallas-Fort Worth metropolitan area.
