CHICAGO, IL – February 14, 2017 – First Stop Health, the telemedicine company generating the highest utilization in the industry, today announced its latest funding round of $1.6 million. First Stop Health has raised total capital of $7.2 million to date. Funds raised in this round will be used to accelerate the company’s growth.
First Stop Health co-founder and CEO Patrick Spain (co-founder and former CEO of Hoover’s) and co-founder and Chief Medical Officer Dr. Mark Friedman led the latest round of investment. They are joined by a dozen other long-time individual and family office investors and a new group of investors with operational experience in the employment benefits industry.
“So much money has been thrown into telemedicine, frequently with little improvement – much less any transformation to show for it,” Spain said. “First Stop Health has proven that it can grow rapidly by delivering value both to its employee members and their employers by providing the highest utilization in the telemedicine industry and guaranteeing its clients a positive ROI.”
Over the past two years, First Stop Health has leveraged its capital to expand its sales and marketing efforts, scale its customer care operations, and build out a technology platform that has allowed the company to delight a rapidly increasing membership base (400% growth in 2016). In 2017, the company will use its new capital to deepen its industry-leading engagement, expand strategically into adjacent services in telehealth, and expand its sales and technology capacity.
“While companies such as Teladoc, MDLive and Doctor on Demand are competitors, First Stop Health takes a completely different approach to the market,” said First Stop Health President David Guttman. “Our fundamental belief is that by focusing on delivering a delightful experience to our members, we can deliver hard dollar savings to their employers – our clients – and guarantee it in writing. No other player in our space has been able to match our performance.”
The dirty secret in telemedicine is that although more than 70% of Americans insured by larger employers are paying for and have access to telemedicine, fewer than 1% of Americans have ever taken advantage of a telemedicine consultation. This creates an enormous opportunity for a company like First Stop Health, which is focused on deep employee engagement and delivering measurable results for its clients.
First Stop Health’s business model focuses on engagement and boasts utilization rates averaging 6 times higher than the industry as a whole.
“I am extremely proud that First Stop Health provides a truly patient-centric solution that benefits the patient in both cost and convenience, allows employers to provide a health benefit that demonstrates an immediate ROI, and relieves stress on an overburdened primary care system,” said Maria Opdycke, COO of First Stop Health. “As the healthcare industry searches for ways to deliver consumer-centric healthcare, a high utilization telehealth benefit like ours delivers on the promise.”
About First Stop Health
Chicago-based First Stop Health is a convenient and affordable telemedicine and advocacy provider available to employees through their employers. It offers immediate, 24/7/365 phone and online access to its U.S.-based national physician network that aims to delight members with advice, diagnosis, and treatment – including prescriptions. First Stop Health also helps manage and reduce major medical claims. Connect with First Stop Health on LinkedIn, Facebook and Twitter @firststophealth.