Everside Health has received a number of inquiries from strategists following 2018. Amazon Primary Care SplashBut CEO Chris Miller said at an Axios Pro virtual event this week that his newly-funded company is “not in a rush to sell.”
Important reasons: Primary care players remain in the spotlight, but the market has shifted from prioritizing rapid growth to focusing on profitability, and Everside is following suit.
Catch up soon: Everside scraps IPO plans, Carried for $164 million It received NEA-led funding this summer.
Zoom in: The company is well positioned to reach profitability in 12 to 18 months, Miller said, and the model requires minimal capital to open new clinics.
- “Frankly, I think it gives us a pretty distinct advantage when it comes to some of the big public companies that are losing a lot of capital,” says Miller. can be fully leveraged, allowing you to “emphasize offense over defense”.
- Everside expects organic growth of 25% to 30% year-over-year, he adds.
What they say: Miller sees Amazon’s acquisition of One Medical as a positive for the industry and not a competitive threat to his Denver-based company, which is rapidly approaching 400 medical centers.
- “We love the fact that more individuals and clients, and frankly some large retailers and payers, are paying attention to the results that value-based care can bring.”
What’s next: While a sale may not be on the table, Everside is exploring opportunities with large payers and a few retailers, Miller said.
- Our goal is to be a one-stop-shop and total cost of care provider for our customers, and we are already beginning to expand beyond primary care to include mental health and occupational therapy.
- “We are looking at each vertical with a strategy that builds for each partner,” as it could include partnerships in specialized areas like MSK. But “one of the reasons we recently raised $164 million was to be open to M&A,” he added.
- For example, clients are looking to Everside for dental and vision services, Miller points out.
environment: Both Everside and One Medical are direct primary care providers to employers, but are not direct competitors at this time, Miller said.
- While Everside’s “sweet spot” is blue-collar America with unions, manufacturing companies, and school districts, ONEM’s D2C model prioritizes big cities and employers.
- “Frankly, they are patients who really need better care,” says Miller. Likewise, they are “employers who really desperately need to save on medical costs…it’s necessary and not a good thing to have.”
- A Fortune 200/Fortune 500 company, Everside is unique in its scale with nearly 400 medical centers spread across 34 states.
- Miller boasts of saving clients 17% by year three and 31% by year five, and hopes to eventually get to the point of taking the full risk.
Big picture: “Today, 110 million Americans are insured through self-insured employers, serving 1.6 million lives, so there is plenty of room for us to continue to grow. We believe that all Americans need this kind of service.”
