Healthcare is hard, even for those who have raised $400M+ on a bold vision for the future of primary care.
Forward Health set out to change the way we experience primary care, with a high touch, tech-enabled subscription concierge offering. Ultimately the original model, which scaled to 19 locations this time last year, proved to be too costly.
In a desperate pivot announced last November (almost exactly one year ago), Forward managed to raise another $100M on a new modular concept for primary care: CarePods.
CarePods were supposed to revolutionize the way we could engage in primary care. The plan was to set up 3,200 locations across the U.S. Then, patients would use a single app to track all of your measurables. Ultimately, however, the business pivot proved too difficult between what I imagine to be logistical challenges like site selection, maintenance, and staffing for 3,200+ sites in such a short timeframe, patient behavior shift, and I'm sure plenty of strings attached to the $100M round.
So the plan fell apart and Forward closed abruptly in November 2024, laying off all 200 employees - ending the once high-flying unicorn's 8 year run.
My verdict, for once, ended up being close to the mark: Forward Health was, indeed, the Bird Scooters of Healthcare.
I have one other gripe, and then I'll be done: sometimes in healthcare, we need to call a spade a spade. It's one thing to be optimistic about what's being built. It's another thing to have toxic positivity around terrible concepts that somehow raise gobs of cash to throw into the furnace.
The initial concept Forward Health launched with was ambitious, as all ideas are - especially considering they went after primary care to transform the experience with a heavy dose of technology. I respect it. CarePods, on the other hand, were destined to fail (just like the new Thrive AI coach thing will, but I digress).
Maybe we'll look back in 30 years and say Forward was ahead of its time. But for now, the hard lesson is learned. It's time to take the doc out of the box, iterate, and move on.
What's next? There's plenty of positive activity still happening in primary care, and none of it is toxic. Direct primary care is picking up steam as a viable option for many entrepreneurial minded physicians and those with established practices on the tail end of their careers.
AI-enabled solutions like K Health will bring administrative support to provider organizations, allowing them to do more with less and allow physicians to work at the top of their license.
Others like Greater Good Health are scaling NP-led practices empowered by technology and physician oversight. Finally, don't forget about the enablers in 2024 - Privia, ApolloMed, Aledade, agilon, Pearl, Lumeris, GuideHealth, etc. - providing physicians and clinicians with technology, alleviating administrative burden, and helping physicians build their careers.
Nobody said it was going to be easy. Two steps Forward, one step back!
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