Have you ever wondered how companies like Hims and Ro operate, selling directly to consumers with cash-pay models? These companies have carved out a space in the healthcare market. But there is a new trend emerging in the direct-to-consumer healthcare space: a model called D2CandB. This new breed of companies is changing the game by focusing on both the consumer and health plans.
In this episode, we explore how D2CandB companies are different, how they work within the traditional healthcare system while maintaining a consumer brand, and why they may represent the future of healthcare. Unlike their cash-pay counterparts, D2CandB companies don't reject insurance. They start by getting in-network with health plans, and also attract consumers through marketing and SEO. As they see more patients, they demonstrate to payers that their interventions reduce costs, which allows them to negotiate better reimbursement rates over time. This is a win for consumers, who get access to more affordable care, and for health plans who can reduce their expenses.
We'll discuss key features of these companies, including their referral networks, their tendency to partner with companies that sell to employers instead of selling directly, and how they focus on demonstrating a return on investment. Companies like Midi, Origin, Brightside, and NOCD are leading the way in this model. We'll explore the potential of this model to move towards value-based arrangements, and the role this model can play in improving healthcare access and affordability. The episode will also discuss how this new model addresses some of the concerns with cash-pay models such as a lack of integration with a patient's overall health record.
Join us as we unpack the D2CandB revolution and discuss what this means for the future of healthcare.
Source: Second Opinion-There’s a new game in town for D2C health business models