Oshi Health just found 60 million reasons why becoming the first virtual gastrointestinal center of excellence in the U.S. was a great decision.
Since launching in 2020, Oshi has raised nearly $120M (half from its just-closed $60M Series C) to help the ~70M Americans suffering from GI conditions control their symptoms while decreasing their total cost of care.
- It accomplishes this by supporting patients with a gastroenterologist-led care team of advanced practice providers, dietitians, behavioral health specialists, and care coordinators.
- These multidisciplinary teams collaborate with local PCPs and GI clinics to treat conditions ranging from acid reflux to Crohn’s Disease, enabling a high-touch point approach that would be difficult to achieve without the extra bandwidth.
The fact that Oshi is already available in all 50 states and to 40M+ people as an in-network benefit is a testament to both the size of the market as well as its model, which differentiates itself with its deep behavioral health integration.
- Many symptoms can be caused by the connection between the patient’s gut and brain, with trauma often marking the onset of new GI issues, and can be corrected through CBT or gut-directed hypnotherapy. Oshi has the research to back that up.
A study done in conjunction with a large national health plan found that Oshi generated $10,292 per patient in avoidable testing, procedures, and ED visits, with 92% of patients reporting symptom improvement within six months.
- Publishing this data was instrumental to Oshi securing health plan coverage, which made it easier for the employers they work with to integrate that care into their benefits offerings, and in turn helped drive awareness among employees with access to the service.
Although payors and employers continue to shift away from specialty point solutions toward broader digital health platforms, the GI market is large enough to justify standalone companies like we see in cardiology or MSK.
- GI conditions cost the U.S. healthcare system upwards of $135B each year, are the leading cause of ED treat-and-release visits, and a top four cost driver for payors and employers alike.
The Takeaway
Oshi has quickly emerged as a leader in the virtual GI space, and it’s now armed with $60M to push its lead even further by expanding its payor coverage, provider group partnerships, and employer programs – not to mention a push into Medicare slated for 2025.
