Online Subscription Services for Health Care
Need help losing weight or handling depression? How about a pill that lowers cholesterol and treats erectile dysfunction?
Online subscription services for care have grown far beyond their roots dealing mainly with hair loss, acne or birth control. Companies including Hims & Hers, Ro and Lemonaid Health now provide quick access to specialists and regular prescription deliveries for a growing list of health issues.
Hims recently launched a weight-loss program starting at $79 a month without insurance. Lemonaid began treating seasonal affective disorder last winter for $95 a month. Ro still provides birth control, but it also connects patients trying to have children with regular deliveries of ovulation tests or prenatal vitamins.
This Netflix-like approach promises help for two common difficulties in the U.S.: access to health care and prescription refills. But it also stirs concern about care quality.
"This isn't medicine. This is selling drugs to consumers," said Dr. Adriane Fugh-Berman, who studies pharmaceutical marketing at Georgetown.
The online providers say they screen their patients carefully and send customers elsewhere if they can't help them. They also think they've tapped a care approach that patients crave.
"The growth we've seen on our platform is a testament to how people are looking to get the care they need," said a representative from Hims.
Hims, a publicly traded company, has surpassed 1.4 million subscribers this year. It has projected to generate at least $1.2 billion in annual sales by 2025.
While this may pale in comparison to the annual revenue of healthcare giants like CVS Health, which exceeds $300 billion, Hims' projection for 2025 is more than eight times its revenue at the start of the decade.
Subscription-based healthcare has been a presence for several years, particularly in primary care, where patients can pay monthly fees for improved access to doctors. Recently, e-commerce giant Amazon entered this market with a subscription plan that offers customers virtual and in-person care.
The popularity of online subscription-based care has grown since the COVID-19 pandemic, as Americans have become more comfortable with telemedicine. This has resulted in a significant increase in investor funding for companies providing this type of care, according to Dr. Ateev Mehrotra, a Harvard researcher specializing in consumer healthcare.
Many condition-specific plans provide patients with regular visits to healthcare providers and recurring prescriptions for a monthly fee.
Dr. Mehrotra highlighted the attractiveness of this simplicity, stating, "You can just get the care you need and move on with life just as you pay for Netflix or whatever."
Weight Loss Programs Offered by Hims, Ro, and Lemonaid
Hims, a healthcare company, recently introduced its weight loss program. This program was launched after the success of their heart health program, which was initiated last summer. The weight loss program includes the use of combination pill treatments.
Ro, a competitor of Hims, added weight loss to its lineup of treatments last year. Ro's offerings also include treatment plans for eczema, excessive sweating, and short eyelashes, among other issues.
Lemonaid, another healthcare company, provides treatment plans for insomnia and high blood pressure. They also offer cholesterol management for $223 a year without insurance. This comprehensive plan includes provider visits, lab work, and prescriptions for generic medicines.
While these companies continue to focus on sexual health, particularly on social media platforms, they are also prioritizing broader growth. Hims sees significant future opportunities in menopause, post-traumatic stress disorder, and diabetes, according to a regulatory filing. Ro CEO, Zach Reitano, believes that their obesity treatments are a proactive approach to addressing other chronic diseases. He highlights that patients seeking weight loss assistance are also concerned about improving their overall health.
Reitano also expressed his belief that the healthcare system's biggest problem is that it is not centered around patient needs. He emphasizes the importance of aligning healthcare services with patient desires.
According to Jason Goldberg, the chief commerce strategy officer at Publicis Groupe, subscriptions, whether for medicine or meal kits, initially appear to be good deals with predictable costs. However, customer enthusiasm can wane over time, and companies may face pressure to find new business.
The approach also comes with reputational baggage.
RobRoy Chalmers turned to Hims for help with erectile dysfunction. But the Seattle artist decided to cancel his subscription and cut costs after a few months.
He kept receiving bills after he thought he stopped the subscription. He said he emailed and called customer service. He didn't get a response until he criticized Hims on social media.
"The amount of effort I needed to go through for them to make good was too much," he said. "This is every subscription-based company in my mind."
Fugh-Berman worries mainly about care quality. She noted that talk therapy can be as effective as prescriptions for some conditions.
"Mental health care should never just be about drugs," she said.
She also noted that a diagnosis can change over time. Patients on regular medications must be monitored in case the drug causes problems like higher blood pressure.
Lemonaid Health does that, according to Dr. Matthew Walvick, the company's top medical official. He said Lemonaid routinely follows up with patients to monitor for side effects and update their medical history.
Brooklyn said Hims' program for mental health care includes psychiatry and talk therapy.
Companies Encouraging In-Person Help Alongside Online Services
Representatives of both companies emphasize the importance of seeking in-person assistance when necessary. They believe that while their online services are convenient, there are certain cases where in-person help is crucial.
However, there are concerns about the overall patient health being overlooked. When customers approach these companies with a specific condition or medication in mind, there is a risk of neglecting other aspects of their health. For example, a person visiting a primary care doctor for birth control may also get screened for depression. This comprehensive care may be lacking in the services provided by these companies.
One company, Lemonaid, claims to collect an extensive patient medical history to ensure the best possible comprehensive care. They delve into issues like smoking or drug use to offer a holistic approach to healthcare.
Another company, Hims & Hers, provides access to safe care for various issues but emphasizes that it should not replace a primary care doctor. They believe that every part of the healthcare system should be focused on improving access.
According to Brooklyn, a spokesperson for Hims & Hers, the traditional healthcare system in the U.S. has been slow to adapt to the changing needs of society.
"The traditional health care system in the U.S. has always been slow to adapt to our changing society's needs," she said.
