Reperio Health, a Portland-based health tech company, raised $6 million for a subscription service providing at-home medical tests. The FDA-approved medical kits will cost roughly between $150 and $200. The tests included are blood tests to measure cholesterol, triglycerides and glucose. Additionally, there are tests for blood pressure, resting heart rates, body mass index and relative fat mass. The company plans to introduce this service to the employer market, which includes benefit groups, insurers, hospitals and senior living businesses, according to GeekWire. Shipments will begin next month.
Understanding the Impact of Covid-19 on Consumer Habits
The pandemic caused unexpected challenges for the healthcare industry. It struggled with the ability to properly care for patients and the overall access to medical supplies. Not only has the global health crisis killed more than 500,000 Americans as of March 2, it has also reshaped consumer behaviors across the world. Fear of contracting the virus, social distancing measures and concerns over hospital capacity frightened many consumers and resulted in a sharp decline in healthcare spending, according to a recent study.
With most Americans being forced to stay home and work remotely, consumer habits are now focused on ease and convenience. The vastly decreasing revenue is causing much of the healthcare industry to evaluate how it can best serve patients. “This has forced the industry to be a little more open-minded to the way that we’re going to do this in the future,” Travis Rush, Reperio’s CEO, said, according to GeekWire. The company strategized and came up with an annual subscription for a once-a-year test.
Healthcare Subscription Services: The New Norm?
Reperio is not alone in setting a course toward subscription. Thirty Madison, a human-first health company offering specialized treatment and care for people with chronic conditions, acquired $47 million last summer, with Johnson & Johnson as an investor.
Thirty Madison operates three different brands tailored to specific needs: Keeps, a subscription for men’s hair loss treatments, Cove, a personalized treatment that helps customers regain control of migraines, and Evens, a personalized treatment plan for acid reflux.
The company recently launched a new subscription brand called Picnic, offering personalized approaches to treating allergies. Because allergies are different for everyone, Picnic uses an allergist-built quiz to gather a more comprehensive understanding of an individual’s allergy history. Once subscribed, the consumer is provided with a care team that includes trained allergy specialists who are always available to answer questions and provide information and support.
Virtual consultations on a subscription basis are something relatively new within the healthcare industry. Not only do they offer a new revenue stream for a healthcare company, but these virtual consultations give consumers a more unique experience and the flexibility to get professional advice without ever leaving their homes.
While the pandemic continues to impact the daily lives of consumers, the healthcare industry works to effectively treat diseases and illnesses in new ways. Healthcare companies are now regrouping to offer the best help they can without physically seeing the patients, and the surge of the subscription industry could not come at a better time.
By establishing a new business model, companies can now start making up for lost revenue while providing the best care they can no matter where the patient is located. Reperio and Thirty Madison are just two groups within a larger community looking toward the future. The multi-million dollar investments in Reperio and Thirty Madison are a true testament to the healthcare industry’s interest and opportunities within subscriptions. This shift could make a sizable impact on the future of the industry and how consumers engage with self-care.
Key Takeaways:
- Reperio raised $6 million for at-home medical testing kits on a subscription basis.
- Thirty Madison launched a new subscription brand for personalized allergy treatments called Picnic.
- The healthcare industry is dabbling into subscriptions as the pandemic has changed consumer behaviors.