$5.8 Billion Healthcare Startup Teaches About Patient Engagement

This video provides an in-depth exploration of how Hims & Hers, a $5.8 billion direct-to-consumer (DTC) telemedicine company, has achieved massive success through innovative approaches to patient and employee engagement. Dr. Eric Bricker begins by highlighting Hims & Hers' impressive financial performance, including $402 million in quarterly revenue, $51 million in profit, and 2 million subscribing customers, emphasizing that their success stands out in a landscape of failing healthcare startups. The core of the presentation focuses on dissecting the unique strategies employed by Hims & Hers, founded by "healthcare outsider" Andrew Dudum, and extrapolating these lessons for traditional healthcare entities like Direct Primary Care (DPC) clinics and employer-sponsored health plans.

The presentation delves into four key pillars of Hims & Hers' success, which align with the "Four Ps" of business: Product, Price, Placement, and Promotion. Firstly, the "Product" is highly differentiated, with completely separate websites and tailored offerings for men (Hims) and women (Hers), addressing specific health concerns like sexual function, hair growth, weight management, and mental health with targeted prescriptions and services. Secondly, their "Promotion" strategy is aggressive and data-driven, allocating 45% of revenue to marketing across diverse media channels, underscoring the critical role of communication in customer acquisition and engagement. Thirdly, "Placement" is optimized through a seamless internet-to-home-delivery experience, eliminating traditional healthcare friction points by integrating telehealth visits, online prescriptions, and discreet home delivery. Finally, "Price" is transparent and flexible, with upfront cash-pay options ranging from $15 to $115 per month, condition-specific pricing, and effective cross-selling strategies that encourage customers to explore additional services.

Dr. Bricker then translates these DTC principles into actionable advice for DPC clinics and employer-sponsored health plans. He advocates for adopting gender-specific messaging and service offerings, significantly increasing marketing and communication budgets, prioritizing a seamless digital-first patient journey, and implementing flexible, transparent pricing models with opportunities for cross-selling. The video emphasizes that people want their health problems solved efficiently, not necessarily the traditional "experience of seeing a doctor," and that healthcare providers and benefit plans must adapt to consumer expectations shaped by successful DTC models. The overarching message is that by embracing these consumer-centric strategies, traditional healthcare can dramatically improve patient engagement and utilization of services.

Key Takeaways:

• Tailored Product Offerings: Hims & Hers demonstrates the power of gender-specific health offerings, with distinct websites and services for men (Hims) and women (Hers) that cater to their unique health priorities (e.g., sexual function and hair for men; weight and wellness for women). This highlights the need for personalized product-market fit in healthcare.
• Strategic Marketing Investment: A significant portion of revenue (45%) is dedicated to marketing across numerous channels, emphasizing that robust communication and promotion are paramount for success and engagement, not just service quality. Traditional healthcare entities often underinvest in this area.
• Seamless Digital-First Experience: Hims & Hers provides an end-to-end digital journey from telehealth consultation to online prescription fulfillment and discreet home delivery. This frictionless "internet-to-home" model prioritizes convenience and problem-solving over traditional, often cumbersome, healthcare processes.
• Transparent and Flexible Pricing: The company operates on a cash-pay model with upfront, condition-specific pricing ranging from $15 to $115 per month. This transparency and variety of price points attract a broader customer base and simplify the financial aspect of care.
• Effective Cross-Selling and Upselling: Hims & Hers excels at cross-selling additional services once a customer engages for an initial condition, demonstrating a successful strategy for expanding customer lifetime value and addressing multiple health needs.
• "Healthcare Outsider" Advantage: The founder, Andrew Dudum, brought a fresh, non-traditional perspective to healthcare, focusing on consumer growth and scaling principles from other industries, which proved instrumental in the company's innovative approach.
• Focus on Problem Solving, Not Just "Doctor Visits": Patients primarily seek solutions to their health problems, not necessarily the traditional experience of visiting a doctor. Healthcare providers should prioritize efficient problem resolution, leveraging telemedicine and digital tools.
• Lessons for Direct Primary Care (DPC): DPC clinics should consider distinct messaging and service offerings for men and women, invest heavily in marketing to increase patient acquisition, enhance their telehealth experience, and offer condition-specific, lower-price entry points to attract new patients.
• Lessons for Employer-Sponsored Health Plans: Benefit managers should treat their offerings as direct-to-consumer products, utilizing diverse marketing channels and segmented messaging to drive utilization of point solutions. A seamless member experience, free of "scavenger hunts," is crucial for engagement.
• The Four Ps of Business in Healthcare: The success of Hims & Hers perfectly aligns with the fundamental business principles of Product (distinct offerings), Price (multiple points), Placement (seamless delivery), and Promotion (large budget), demonstrating their universal applicability even in regulated industries.

Key Concepts:

• Direct-to-Consumer (DTC) Telemedicine: A model where healthcare services and products are offered directly to patients online, bypassing traditional intermediaries like insurance companies or physical clinics.
• Patient Engagement: The process of involving patients in their own healthcare decisions and encouraging active participation in managing their health, often facilitated by accessible, convenient, and personalized services.
• Cross-selling/Upselling: Strategies to encourage customers to purchase additional, related products or services (cross-selling) or upgrade to a more expensive version of a product/service (upselling).
• Seamless Experience: A user journey designed to be smooth, intuitive, and free of friction points, from initial contact to service delivery and follow-up.