Health tech bubble watch: Alphabet-backed One Medical reportedly prepping for 2020 IPO

Another health tech company tests the IPO waters. One Medical, a primary care medical clinic group that digitizes the office experience by offering mobile apps with online scheduling, virtual consults, and same-day appointments–for an annual fee of $200 plus your insurance–is prepping for an IPO filing early next year. The sure sign is that it’s hired banks including J.P. Morgan and Morgan Stanley.

One Medical, backed by Alphabet, has 72 primary care practices in nine major US cities. It currently has a valuation of $1.5 to $2 bn based on private share sales and investment firm estimates. In 2008 it raised $220 million in a 2018 round led by The Carlyle Group for a total raise since 2007 of $408 million, backed by Alphabet’s GV venture arm and VC firm Benchmark. From an initial emphasis on individual enrollment and a ‘lite’ version of concierge medicine, it recently has concentrated on self-insured employers, corporate health plans, and service areas such as mental health and pediatrics. A big question for investors will be its valuation–tech or healthcare?

One Medical would join IPO brethren such as Health Catalyst, Livongo, Phreesia, and Change Healthcare, all of which had fairly strong openings and initial growth but have rollercoastered since then. Still, smaller IPOs such as Progyny, a company that manages fertility benefits for employees at large firms, have filed to IPO by the end of the year. Fierce Healthcare, CNBC, Business Insider

Does healthcare need a new EHR system? A major health system thinks so. (Updated)

An interesting pairing to work on a ‘next generation EHR’. EHR and HIT giant Allscripts and Northwell Health, the largest health system in New York State, are partnering to develop an EHR that is AI and cloud-based and–what’s different–voice-enabled. Allscripts will, according to the release, provide development and systems integration expertise; Northwell will provide the clinician input, testbed, and also support the project with IT and administrative staff. The goal is an optimized patient and clinician experience, which is about as specific as the release gets. According to POLITICO’s Morning eHealth, the foundation for the system will be Avenel, the company’s stripped-down, cloud-based EHR platform, There’s no further information on timing, cost, what the AI might do, or whether the focus will be on acute care or outpatient/specialty practices.

Allscripts and Northwell will continue with their Allscripts EHRs in use since 2009, Allscripts Sunrise at the 19 Northwell hospitals and Allscripts Touchworks EHR used at Northwell’s 750 owned and operated outpatient practices in the metro New York area. Additional articles at Northwell’s newsroom.

Update 16 Oct: Northwell announced that it was extending its contract with Allscripts through December 2027. Read on in HISTalk for a tart take on the odds that the next-gen EHR will actually be a viable, competitive new product.