Primary care provider One Medical announced Wednesday that it had received an investment of up to $350 million from private equity firm The Carlyle Group.
With 72 offices around the country, One Medical, offers concierge-style primary care, charging patients an annual fee of $149 to $199 in exchange for perks like same-day office visits and 24/7 access to a medical professional via their app. One Medical was founded in 2007 by Tom Lee (who is now executive chairman), and former United Healthcare executive Amir Rubin was hired to take over as CEO last year.
Of the $350 million announced, $220 million will be a direct investment in One Medical. Another $130 million is expected to go toward buying shares from existing investors, though the company says that part of the deal has not closed yet.
Prior to this investment the company had raised about $180 million from investors like J.P. Morgan, Fidelity and Alphabet’s venture capital arm, GV, according to Pitchbook. Carlyle’s funding will help with One Medical’s plans to double its office count over the next several years.
In a year where total healthcare sector VC fundraising has already trounced any previous year in at least a decade, Carlyle’s new investment in One Medical is one of the biggest. Moderna Therapeutics, a biotech firm developing drugs using messenger RNA, has raised $625 million this year from two separate funding rounds, and last month DNA testing business 23andMe raised $300 million in a corporate investment from GlaxoSmithKline.
One Medical also claims that it has measured a 5.5% average decrease in healthcare costs for its 1,000 employer partners.
“The primary care system in the United States is broken and One Medical is the brand poised to help fix it,” said Carlyle managing director Ram Jagannath in a statement. “One Medical pioneered the concept of a more modern primary care experience, and it has an incredibly exciting roadmap over the next several years.”
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