What You Should Know:
– Today, One Medical (NASDAQ: ONEM) announced its intent to acquire Iora Health, a value-based primary care group for serving roughly 38,000 Medicare patients through digital health and 47 in-person medical offices in ten markets across the United States for about $2.1B in stock.
– Iora Health’s relationship-driven primary care model focuses on relationships to improve health outcomes and significantly lower costs than the traditional healthcare system.
– Currently, One Medical and Iora Health serve largely different populations, with One Medical primarily serving the commercially-insured population and Iora Health primarily serving seniors in at-risk contracting relationships such as Medicare Advantage and Medicare Direct Contracting.
– Together, One Medical and Iora will extend its combined reach, with nationwide digital health coverage and a combined in-office footprint placing them in 28 markets covering 120 million people or nearly 40% of the entire U.S. population. This acquisition better positions One Medical to serve more people nationwide and across every stage of life–pediatrics, adults, and now, more seniors.
As part of this acquisition, Iora Health CEO Rushika Fernandopulle will join One Medical’s leadership team as Chief Innovation Officer. Iora Health will continue to operate as its own practice as One Medical explores integration in the future.