- One Medical is partnering with Connecticut health system Hartford Healthcare to provide primary care services for patients in the area through One Medical's subscription model, the organizations said Wednesday.
- Connecticut will be the 29th service area for One Medical, which also plans to enter Dallas, through a partnership with Baylor Scott & White, as well as Miami and Milwaukee this year.
- Also Wednesday, One Medical released financial documents showing a net loss of $95.4 million for the fourth quarter of 2021. The company beat analyst expectations for the quarter in earnings and revenue, but posted a high medical loss ratio.
One Medical, which went public about two years ago, continues to expand its range of tech-focused primary care services. Traditional health systems are one avenue for growth. The company expects to open 30 to 40 new offices this year.
Hartford Healthcare has more than 400 locations across 185 towns and cities in Connecticut. It operates a home care system, multispecialty physician group and behavioral health network along with multiple hospitals.
One Medical CEO Amir Dan Rubin told analysts in a call Wednesday that COVID-19 headwinds continue, including staffing shortages, a lag in return to care and reduced revenue from testing.
SVB Leerink analysts pegged the fourth-quarter results as mixed, noting the high MLR of 94%. One Medical's stock was trending down in Thursday morning trading, as it has been all year.
Rubin said on the call the MLR has begun to moderate this year and he expects that trend to continue. He blamed the high number on COVID-19 care, noting routine care levels are still below pre-pandemic levels.
One Medical continues to integrate Medicare-focused Iora Health, which it acquired in June for $2.1 billion. Rubin said clinics are becoming more integrated, but may offer different services based on what population they are most likely to attract. Some are already using common staff and technology, he said.
Medicare revenue accounted for about 43% of total net revenue in the fourth quarter at nearly $100 million. The company expects Medicare revenue for the first quarter to be between $125 million and $130 million and for the full year of 2022 to come in between $515 million and $535 million.
One Medical has continued to push more members into risk-based arrangements, and increased the number of members in such models by 1,000 from the previous quarter. In full-year results for 2021, the company increased membership by 34%.