Overview
One criticism of our ONEM long has been a view that they are highly penetrated in their existing markets. We had a call with a regional manager of a large PEO that offers One Medical within their product menu. We came away much more comfortable that our analysis of the remaining market is reasonable and that ONEM has a ways to go before penetration challenges their growth rate. In addition customer attrition remains low implying the post-COVID rebound is likely to recover toward pre-COVID patient levels on a same store basis. We will continue to track physician counts, including those billing under the One Medical banner as well as those billing through network partners, giving us an indicator of the pace of their expansion and demand at the practice level.
Field Notes
- Regional sales manager, partnered with One Medical, early adopter, 4th year of selling
- One Medical helps close new business
- Customer attrition remains low during COVID-19 even though NYC is shut down
- Average employee salary runs as low as $50K where One Medical is offered, lower than our assumption of $75K
- Tech company, start up at the higher end of compensation, non-profit
- During a pitch 1 out of 5 new business pitches, they are already using it, but may not be through company
- 60% of the book is using ONEM, but their customer growth is high
- "More than enough new business for my team to hit targets 2X over"
- Big PEO's are not offering ONEM
- "One Medical has been incredibly useful and helpful during COVID-19"
- "We use it here, and One Medical has almost a cult following"
- One Medical is not directly involved in the office re-opening, look at "Health Advocate" for guidance and re-opening service
- Multi- market employers are a big opportunity as ONEM expands to more cities
- Most employers won't opt in if they have employees in a market where ONEM does not cover
- Working remotely may mean ONEM expands offices to suburbs
- They should be in Miami, FL
- Cost benefit really difficult to pitch, hypothetical cost benefits do not work as a selling point
- Experience is the most effective sales pitch, trial membership given to decision maker extremely effective
- His firm will be back in NYC, "temporary leave" for now, "back in 2021"
All data available upon request. Please reach out to with any inquiries.
