SAN FRANCISCO, Sept. 01, 2021 (GLOBE NEWSWIRE) — One Medical, a leading human-centered and technology-powered national primary care organization, today announced it has completed the acquisition of Iora Health, a human-centered, value-based primary care organization with built-for-purpose technology focused on serving Medicare populations.
“One Medical is now even better positioned to deliver better health, better care, and lower costs across every stage of life,” said Amir Dan Rubin, Chair & CEO of One Medical. “One Medical will extend its reach from children and adults to even more seniors, across 28 existing and announced combined geographies encompassing approximately 40% of the U.S. population, with a national potential addressable market of approximately $870 billion. One Medical’s demonstrated ability to delight and attract members, enable improved health outcomes, reduce the cost of care, and simultaneously deliver results for multiple key stakeholders will now be extended further in pursuit of our mission to transform healthcare.”
“One Medical and Iora have common mission-driven cultures, built-for-purpose technologies for our respective care models, and best-in-class teams, including salaried providers. In joining with One Medical, we can now deliver the best care and value to more people and in more geographies across the U.S.,” said Rushika Fernandopulle, Co-Founder of Iora Health and Chief Innovation Officer of One Medical.
As of July 31, 2021, Iora took care of approximately 39,000 total patients, including 31,000 At-Risk members, 3,000 Consumer and Enterprise members, and 5,000 Other Patients.
Transaction Details
Pursuant to the merger agreement previously announced on June 7, 2021, One Medical issued or has reserved for issuance approximately 56 million shares in the transaction (including shares underlying options).
Financial Outlook
One Medical provides forward-looking guidance on membership count, revenue, care margin, and adjusted EBITDA. Care margin and adjusted EBITDA are non-GAAP measures. With the completion of the acquisition of Iora, One Medical is providing an update with regards to the third quarter 2021 and fiscal year 2021 outlook as set forth below. This update includes the contribution of Iora to One Medical’s financial results beginning September 1, 2021 to the third quarter 2021 and fiscal year 2021 outlook.
| Three Months Ending September 30, 2021 |
Twelve Months Ending December 31, 2021 |
||||||||
| In $ millions, except membership data | Low | High | Low | High | |||||
| Consumer & Enterprise Members (1) | 660,000 | 665,000 | 685,000 | 690,000 | |||||
| At-Risk Members (2) | 31,000 | 32,000 | 32,000 | 33,000 | |||||
| Total Members (3) | 691,000 | 697,000 | 717,000 | 723,000 | |||||
| One Medical Revenue | $113 | $120 | $475 | $485 | |||||
| Iora Health Revenue | $27 | $28 | $111 | $114 | |||||
| Total Revenue | $140 | $148 | $586 | $599 | |||||
| Care Margin | – | – | $171 | $180 | |||||
| Adjusted EBITDA | – | – | $(40) | $(45) | |||||
- A Consumer & Enterprise member is a person who has registered with One Medical and has paid for membership for a period of at least one year or whose membership has been sponsored by an enterprise or other third party under an agreement having a term of at least one year. Consumer & Enterprise members do not include virtual-only One Medical Now users and any temporary users as part of One Medical’s community service. Consumer & Enterprise members provided above include a projected contribution of approximately 3,000 members from Iora.
- An At-Risk member is a person for whom One Medical is financially responsible for managing the member’s healthcare costs, for example through Medicare Advantage or Medicare Direct Contracting.
- Total Members exclude approximately 20,000 Other Patients as of July 31, 2021. “Other Patient” refers to a person who is neither a Consumer & Enterprise member nor an At-Risk member, and who has received digital or in-person care through One Medical over the last twelve months. Other Patients include a projected contribution of approximately 5,000 Other Patients from Iora.
Membership data is rounded to thousands. Management has not reconciled forward-looking non-GAAP care margin and adjusted EBITDA to their most directly comparable GAAP measures of loss from operations and net loss, respectively. This is because we cannot predict with reasonable certainty and without unreasonable efforts the ultimate outcome of certain GAAP components of such reconciliations, including market-related assumptions that are not within our control, certain legal or advisory costs or others that may arise, without unreasonable effort. For these reasons, we are unable to assess the probable significance of the unavailable information, which could materially impact the amount of the future directly comparable GAAP measures. See below for additional important disclosures regarding our non-GAAP financial measures. Our definition of adjusted EBITDA has been revised from our previous reports of adjusted EBITDA to also adjust for certain legal or advisory costs prospectively from the first quarter of 2021, and adjust for acquisition and integration costs prospectively from the second quarter of 2021.
About One Medical
One Medical is a membership-based and technology-powered primary care platform with seamless digital health and inviting in-office care, convenient to where people work, shop, live, and click. Our vision is to delight millions of members with better health and better care while reducing costs. Our mission is to transform health care for all through our human-centered, technology-powered model. Headquartered in San Francisco, 1Life Healthcare, Inc. is the administrative and managerial services company for the affiliated One Medical physician owned professional corporations that deliver medical services in-office and virtually. 1Life and the One Medical entities do business under the “One Medical” brand.
About Iora Health
Iora Health is building a different kind of health system to deliver high impact relationship-based care. With a mission to restore humanity to health care and a goal to transform healthcare overall, Iora Health’s care model provides extraordinary service to patients to enable improved health outcomes while lowering overall health costs. Our patients enjoy the benefits of better access to care, office- and non-office-based encounters (e.g. phone, text messages, and email), an accessible and transparent medical record, and robust educational offerings. Our practices across the U.S. enjoy the benefits of smaller panel sizes, closer relationships with patients, and the opportunity to lead systemic change in health care delivery while working with a true team.