One Medical plans to expand into North Carolina and Wisconsin as the primary care providers' membership grows during the COVID-19 pandemic.
The San Francisco-based company announced Wednesday it will enter the Raleigh-Durham, North Carolina market and parts of Wisconsin, marking its 14th and 15th metropolitan markets.
One Medical will partner in North Carolina with Duke Health through clinical and digital integrations between primary and speciality care settings, the company said.
This follows entry into Atlanta, Georgia, Portland, Oregon and Orange County, California in 2020 and a planned opening in Austin, Texas.
The company's membership jumped 25% in the second quarter to reach 475,000 members, One Medical reported during its second-quarter 2020 earnings call.
Membership rose by 50,000 patients during the first half of 2020
One Medical reported second-quarter revenue of $78 million, up 18% from $66 million during the same period last year. The company's cash and short-term marketable securities topped $660 million during the quarter.
One Medical, which went public in January, markets itself as a membership-based, tech-integrated and consumer-focused primary care platform. The company is currently in 12 different markets across the U.S. with more to open up in 2021.
However, while the company has been growing its overall size, it has continually reported losses.
One Medical reported losses of $30 million, or 24 cents a share, compared with a loss of $11 million or 61 cents a share, in the year-ago period, according to its filing.
The company's revenue and earnings topped expectations. Wall Street analysts expected a loss of 29 cents a share for the quarter on revenue of $62 million, according to Seeking Alpha.
The company's performance in Q2 proves the value of One Medical's longitudinal care model by offering services across digital and in-person settings, said Amir Dan Rubin, chair and CEO of One Medical during the earnings call.
"We are serving as a longitudinal system of care for our members, offering both remote and in-person care for chronic disease management, cancer screening, behavioral health, pediatrics and sport medicine," he said.
One Medical Chief Financial Officer Bjorn Thaler said patient volume declined in March through April but by June the company's aggregate number of billable services exceeded pre-COVID-19 levels. This recovery was driven by better than expected volumes, he said.
The company is seeing growing demand for its services from employers, One Medical executives said.
One Medical rolled out a work site reentry program, called One Medical Healthy Together, to support employers as they begin to transition workforces back into shared environments. That program virtually screens employees for key symptoms and clinical risk factors, offers testing services and supports ongoing digital screening and follow-up care as needed.
A new virtual-only offering for companies, called One Medical Now, is seeing strong interest from national employers, company executives said. That platform provides the One Medical service experience to employees in markets where One Medical doesn’t currently offer a physical presence.
That product also helps to broaden One Medical's footprint, expanding reach within existing employer accounts, and building relationships with new national employer clients, the company said.
For the third quarter of 2020, One Medical expects to have between 486,000 and 496,000 members.
The company is projecting total net revenue in the range of $84 million to $89 million in the third quarter. Adjusted EBITDA is to projected to be in the range of a loss of $12 million to a loss of $7 million for the quarter.
The company expects its total membership to top 500,000 by the end of the year, with an estimated range of 505,000 to 515,000 members.