PLUSHCARE

EXECUTIVE SUMMARY

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PLUSHCARE EXECUTIVE SUMMARY

WHAT’S THE STORY PlushCare is a virtual visits healthcare company featuring doctors from America’s top medical schools and changing the status quo for consumers who want to have a relationship with their doctors online.

Started in 2014 by a former AT&T tech executive along with two Stanford-trained internists, PlushCare says it has so far served tens of thousands of people and “allows patients to skip the waiting room and get diagnosed, treated and prescribed medication by top U.S. doctors via smartphone.”

Unique from other companies providing telehealth services, 100% of PlushCare’s doctors are trained at Stanford, UCSF, UCLA, Vanderbilt and other top 50 schools. It also features a simple “D2C approach.” Whether services are purchased by consumers directly or by consumers through their employers or health plans, PlushCare charges $99 for a first visit and then $69 for existing patient and follow-up visits.

PlushCare’s aim is to provide a best-in-class platform and patient/doctor experience in the telehealth industry. According to the company’s CEO: “Existing telehealth offerings focus on one-time transactions … but we have changed that. Our world-class doctors build the long-term relationships which we are all accustomed to, but with enhanced accessibility through our seamless platform. PlushCare doctors will quarterback your health from start to finish. The virtual examination is just the start of the journey.”

Offered only in California when it started, PlushCare doctors have become licensed in other states and, with that, expanded to include its virtual services in Arizona, Hawaii, Nevada, Washington, Illinois, New York, Ohio and Pennsylvania. Plans are underway to further expand, to include 16 total states. Also, the company’s longer-range plan is to provide services nationwide.

PlushCare has entered into partnerships – and is electronically integrated with – Quest Diagnostics and LabCorp. The company also partners with national pharmacy chains such as Safeway, CVS, RiteAid, Costco, Walmart and Walgreens to provide e-prescription services.

To further advance its mission, PlushCare joined forces with the California School-Based Health Alliance to create the #GetHealthGiveHealth program, which provides healthcare services to underserved children. For every appointment a patient schedules with PlushCare, the company provides a child with a needed healthcare service such as a vaccine or checkup.

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HOW IT WORKS For consumers, PlushCare services can be accessed directly through the company’s web- and mobile-based, HIPPA-compliant platform. The PlushCare app is available for both Android and iPhone devices.

Depending on the patient’s location, PlushCare will offer options for scheduling same-day medical care, with physicians available from 5:30 a.m. to 10:00 p.m. Patients may choose from a selection of physicians licensed to practice in their states. The chosen doctor will contact the patient and spend as much time as needed to provide diagnosis, treatment, prescriptions, lab orders, and/or in-person and specialist referrals as necessary. Services are provided for non-emergency medical issues which typically include treatment for urinary tract infection, sore throat, pink eye, sinus infection (sinusitis), and bronchitis, as well as STD testing.

If needed, the PlushCare doctor will send prescriptions and lab orders electronically to the patient’s preferred pharmacy and lab companies. Also, the clinical data from the virtual visit can be forwarded to the medical records system housed by the patient’s primary care doctor.

As of February 2017, PlushCare rates are $99 for the first visit and then $69 for subsequent visits. PlushCare guarantees that if the problem is not resolved within the first visit, patients may schedule a follow-up visit for free.

PlushCare says it accepts most major health plans and will check to ensure the doctor selected is in the patient’s network, in which case the patient will be billed only for his or her plan’s co-pay.

For doctors who choose to join PlushCare, they are able to spend time with patients without the workload involved in running a practice. According to the company’s Chief Medical Officer, doctors work 13 hours a week, on average, with PlushCare. The company provides malpractice plus tail coverage for its physicians. Also, it says that its services are “designed by doctors, for doctors,” and features an easy-to-use tech interface and freedom to work worry-free from anywhere.

For employers and health plans, PlushCare offers an enterprise solution with a payment model that is consistent with its D2C approach. With no network access fee (which is common for telehealth enterprise models), PlushCare charges only its standard per visit fees, which lowers costs for payers.

HOW THE IDEA, COMPANY, AND MODEL OF CARE ARE EVOLVING

Based in San Francisco, PlushCare was co-founded in early 2014 by CEO Ryan McQuaid along with James Wantuck, MD and Beau Brinckerhoff, MD. McQuaid is a former lead product marketing manager for AT&T’s mHealth Platform business. Dr. Wantuck, PlushCare’s Chief Medical Officer, is an internal medicine physician who received his medical degree at Vanderbilt University School of Medicine and completed his residency at Stanford. Dr. Brinckerhoff is also an internal medicine physician who trained at Stanford.

The trio launched PlushCare initially via a funding and start-up campaign through Indiegogo (a crowdfunding resource for start-up businesses). PlushCare also secured other initial funding from early investors that included executives from Kodak, Splunk, Apple and UCSF.

PlushCare first launched in the California marketplace as a subscription service and was staffed by Drs. Wantuck and Brinckerhoff. Members paid a monthly subscription fee that enabled them to e-mail the physicians and schedule appointments for phone and video visits.

In October 2014, PlushCare graduated from its beta phase and changed its subscription prototype to its current pay-per-appointment model.

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In November 2016, PlushCare announced it had raised $8 million in a Series A funding round led by GGV Capital and supported by Lightspeed Venture Partners and Exponent. In addition to backing PlushCare, GGV Capital has funded other big brands like Airbnb, Slack, Square, Alibaba and others.

As of February 2017, the PlushCare website lists its services available in 16 states. With its Series A funding, the company has noted its plans to expand nationwide.