One Medical has confirmed to TechCrunch it has closed on funding from the Carlyle Group for a new cash infusion worth $350 million. This announcement follows an earlier report this week One Medical was seeking to close a $200 million deal, on top of a possible $100 million in stock for the financing firm.
However, we have since learned the deal is a tad higher, including $220 toward the primary equity investment and another $130 million in a secondary investment.
CEO Amir Rubin tells TechCrunch the new funds will go toward a serious expansion for the company, including doubling it’s 72 offices throughout the seven states One Medical is currently serving and expanding into new markets. Rubin was coy about where those new markets might be for now but said we’d know soon enough.
One Medical is a members-only technology platform offering an array of concierge medical services, including same-day scheduling, virtual doctor visits and reminders for important checkups. It started out as a direct-to-consumer model but has expanded in the last few years to offer medical care for employees at companies like Uber and Adobe.
The funding will also help One Medical take on both dinosaur incumbents in the medical field as well as newer startups with a similar technology offering like Forward, an AI-based “medical office of the future.”
To beat both, Rubin would like to use part of the new cash to beef up his company’s tech backend. One Medical’s platform is built on algorithms and machine learning to pull together new information and help patients have a better experience at the doctor’s office. Right now, getting all of your medical history in one place is a hard problem to solve in the U.S. healthcare system — only complicated by the many coded hurdles in dealing with insurance. Rubin would like his platform to quickly surf through the data and find procedures done elsewhere to ensure patients are better served by their medical team.
Lastly, the new funding provides an opportunity for One Medical to scale up its human medical team. One Medical tells TechCrunch it will also invest tremendously in its clinical team, doubling its provider numbers, which are in the “several hundreds” right now.
Prior to this round, One Medical had raised just over $180 million and was last valued around $1 billion. The new funding puts the total raised at $530 million.