One Medical is an interesting company. Unique business model and business ops that could make them really powerful like Costco Wholesale over the long term.
Here are some quick takeaways.
If One Medical can break-even on patient services, memberships can go straight to bottom line, similar to Costco. Breakeven on the top-line (assuming their COGS is inclusive of physician payroll) could be expedited if capacity planning is refined whether it is be through contract and/or rotational based planning, essentially matching DAILY supply of providers to demand of patient services.
Some interesting takeaways from their S-1 Filing.
- Sources of revenue: patient services (~52%), partnerships (~29%) & memberships (~19%)
- Annual retention: 97% for enterprise and 89% for consumer members
- Enterprise client growth could be a long-term secular trend as companies and SMBs will slowly seek more cost efficient employee healthcare cost (which has been competing for year with shelter/rent variable in CPI inflation for years)
Intersection notepad 