Alpha Medical Secures $24M Series B Funding for Women’s Telehealth

Alpha Medical Secures $24 Million in Series B Funding

Alpha Medical, a telemedicine organization specializing in women’s health services, recently finalized a $24 million Series B funding round on Tuesday. This positions the company within a rapidly expanding telemedicine market, significantly boosted by recent global health events.

A Unique Telemedicine Approach

However, Alpha Medical distinguishes itself from many competitors by eschewing traditional video consultations. Patients will not engage in live sessions via platforms like Zoom.

Founded in 2017, Alpha Medical has established a network comprising 30 primary care providers (PCPs). These professionals deliver care to female patients through an online platform, eliminating the need for phone or video interactions.

Service Details and Cost

For an annual fee of $120 – a cost not typically covered by insurance – individuals can create an account, submit their medical history and intake forms, and be assigned a dedicated PCP. Communication with the assigned physician occurs entirely through the online platform.

This model of telehealth is often referred to as “store and forward,” where patient health data is accessible to a physician for review on a digital platform, rather than during a real-time appointment.

Asynchronous and Accessible Care

“We provide each patient with a primary care physician who possesses specialized knowledge in women’s health,” explains Gloria Lau, co-founder and CEO, to TechCrunch. “All of this is conducted online, and in an asynchronous manner.”

While exceptions exist – referrals for lab tests or to other PCPs for conditions requiring in-person management – Lau estimates that approximately 80% of healthcare needs can be addressed online, with the remaining 20% necessitating physical examinations.

Growing Investment in Women’s Health Telemedicine

Startups concentrating on women’s health are increasingly attracting both attention and financial investment. Tia, a women’s telehealth company that also operates physical clinics, recently secured $100 million in a Series B round.

Notable Funding Rounds

Maven Clinic, a female-founded organization focused on women’s and family health, completed a $110 million Series D round in August, achieving unicorn status.

Alpha Medical’s recent funding, while not a mega-round, aligns with this broader trend. It brings the company’s total funding to $35 million, including a prior Series A round that raised approximately $11 million.

Investors in the Round

The funding round included participation from SpringRock Ventures, Margo Georgiadis, Outcomes Collective Growth Capital, FMZ Ventures, Samsung Next, Chamaeleon, AV8 Ventures, and GSR Ventures.

Expansion and Future Plans

Previous funding enabled Alpha Medical to significantly expand its service coverage, growing from approximately 10 states to 46, including the District of Columbia. It also facilitated an increase in the number of conditions its providers could manage, from three to 60.

This new round of funding will be utilized to further train and recruit providers capable of addressing an even wider range of conditions, with polycystic ovarian syndrome being the most recent addition.

B2B Service Expansion

The company also intends to extend its services beyond direct-to-consumer offerings to include business-to-business (B2B) partnerships. “We’ve begun discussions with health plans and employers to address existing gaps in care,” Lau states. “We are actively engaged in conversations with health plans and have received initial contracts from some employers – this was actually the impetus for exploring this avenue.”

Leadership and Expertise

Gloria Lau, one of Alpha Medical’s co-founders, brings extensive experience in data science to the company. She currently serves as a consulting faculty member at Stanford Engineering and previously held the position of Vice President of Data at Timeful, which was acquired by Google in 2015.

Clinical guidance is provided by Mary Jacobson, Alpha Medical’s Chief Medical Director, who is a board-certified obstetrician and gynecologist.

Addressing Healthcare Access Issues

Alpha Medical aims to address a growing need for accessible primary care services. The Health Resources and Services Administration has identified approximately 3,434 medically underserved areas within the United States – regions experiencing a shortage of primary care providers.

A total of 14 million individuals reside in these medically underserved areas.

Telehealth and Primary Care Deserts

The existence of these “primary care deserts” has consistently been a key argument for direct-to-consumer telehealth companies. Ro, currently valued at $5 billion, has reported reaching patients in 98% of these areas, according to its own assessments.

Alpha Medical’s target user is a woman residing in an area with limited access to PCPs. However, the demographic also includes individuals with high-deductible health plans or those without insurance coverage.

Declining Primary Care Visits

Even among insured individuals in areas with available primary care, there is evidence suggesting a decline in primary care visits. A 2021 study published in “The Annals of Internal Medicine” analyzed 142 million primary care visits between 2008 and 2016.

The study revealed a 24.2% decrease in primary care visits, while specialist visit rates remained stable. This decline was most pronounced among young adults.

Factors Contributing to the Decline

The study identified several contributing factors, including rising costs (the average out-of-pocket expense increased from $29 to $39 during the study period), high deductibles, limited access to care, and a tendency to seek care at urgent care clinics or from specialists.

Affordability and Target Demographic

Alpha Medical’s services are not currently covered by insurance, but Lau emphasizes that the $120 annual fee for unlimited visits is affordable for individuals with high-deductible plans or those who are uninsured. The service also offers an à la carte option, with individual visits costing between $15 and $30.

The average income of an Alpha Medical user is approximately $40,000 per year, which is comparable to the median income for women working full-time, as reported by the 2020 census ($47,300 per year).

The Benefits of Asynchronous Care

“Our affordability is a direct result of the asynchronous nature of our service,” Lau explains. “Patients aren’t charged for the physician’s time while they are considering their symptoms or family history. Clinicians are only notified when all necessary information is collected and integrated into the electronic medical record.”

The concept of asynchronous healthcare may initially seem unconventional. A key benefit of having a primary care physician is the establishment of a personal relationship with a healthcare provider.

However, the current landscape presents a unique opportunity to integrate telehealth and women’s healthcare.