Founded in 2015 by Dr. Daniel M. Sussman, Hinge Health is an online digital health clinic specializing in treating musculoskeletal issues such as lower-body injuries, neck and shoulder pains, and knee and hip problems. It was created because there were no effective treatments available for these types of ailments.
It has been around for just over five (5) years and has already reached the massive $3 billion market cap, so it’s now a good idea to look at its business strategy and see how they make money.
Hinge Health provides health insurance plans to employers so they can provide them to their workers. Workers can use these plans to receive valuable medical services and tools from Hinge Health.
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About Hinge Health
Hinge Health is an online health portal that helps people living with chronic pain and injuries get access to medical care. By making physical therapy more accessible and less expensive, they’ve helped hundreds of companies improve their employee wellness programs.
The company is built right at the intersection between healthcare and tech. It essentially provides remote physical therapy and behavioral services using wearables, apps, and online coaching.
It was founded using scientific methods and technologies. Its membership base consists of 180,000 people.
Business Model of Hinge Health
With an intention to help people suffering from musculoskeletal pains, Hinge Health has quickly earned a reputation for being one of the best in the business.
Concerned about the lack of proper care for people suffering from musculoskeletal disease, he decided to do something about this situation.
Despite numerous studies being done on subjects related to musculoskeletal issues, the industry has yet to take action to implement any of these findings into its products.
Using smart sensors, physical therapy, and personal coaching, Hinge Health delivers a service that helps people overcome chronic pain. Thousands of people have found relief from chronic pain through Hinge Health’s services.
With so many people suffering from chronic pain, Hinge Health has a big job ahead of them.
They seek to avoid the typical opioid and surgical treatments which are often ineffective. Instead, they use evidence-based medicine and advanced technology to treat their patients effectively.
Musculoskeletal disorders cost the United States $1 trillion annually. To combat this issue, Hinge Health plans to make physical therapy and rehabilitation services more accessible for patients.
People who suffer from MSK-associated conditions are often prescribed various medications and painkillers. However, the company Hinge Health advises against using these methods, instead suggesting a more holistic method of healing.
Physical Therapy
Many people with MSK conditions turn to surgical solutions when they don’t get better through non-invasive treatments. However, these surgeries aren’t always the most effective ones. Instead, we recommend holistic physical therapies.
Those who complete the company’s wellness program experience significant improvements in their overall health, with many avoiding up to three surgeries. Four out of five participants also report an approximate 70 percent reduction in chronic pain. This means the program is four times more effective than prescription medications for treating pain.
With wearable sensors, Hinge Health guides its members through their physical therapies in a way that is personalized for each person.
As an illustration, overweight people who are more likely to suffer from back and joint pain may seek a healthier lifestyle by losing some pounds. Hinge Health takes the extra step by integrating information about body mass index (BMI) into its programs, ensuring that members receive health advice that suits them best.
They believe that when you move better you feel better, so therefore they help their members to get moving by providing them with an exercise program. Many of their clients report experiencing significant health benefits from participating in the program.
Education
Hinge Health is not just about managing chronic pain or relieving symptoms.
They want to teach people how to avoid injuries and diseases caused by bad habits. To achieve that, they hired doctors and physical therapists to create their prevention programs. By creating these programs, they provide customized education for each member.
When medical issues arise, our team is here to help members understand their options and navigate through them. We’re always ready to answer any question they may have.
The company invests heavily in its members by providing them with training courses, loans, and resources that help them learn everything they need to know about MSK care. Its website and mobile app offer many tools and resources that help members understand MSK health.
Behavioral Support
With Hinge Health, we take a very personalized approach to helping people achieve their goals. We recognize that life doesn’t always go according to plan, so our programs fit into each individual’s schedule.
Musculoskeletal diseases are often associated with mental health issues. Hinge Health members who enroll in our online wellness program report experiencing a significant decrease in their symptoms of anxiety and depression by an average of about 60-70%.
Hinge Health provides its valuable tools and resources so that people who suffer from musculoskeletal disorders (MSDs) can get adequate treatment.
The company doubled its customer base in 2020 with a customer acquisition cost of zero.
How Does Hinge Health Make Money?
Hinge Health provides valuable services for people who suffer from chronic conditions. It aims to help them manage their health through online tools and resources.
The platform and app are available through employers’ healthcare plans. Approximately 160 million Americans get their healthcare through their job, which makes them an attractive target for companies looking to provide employees with access to fitness programs. The app is free for most patients, so there are no costs associated with using it.
Hinge Health knows its value and strives for member satisfaction. It’s why the price varies from individual to individual. Most members find the platform to be highly valuable.
A Stanford University research team has discovered that Hinge’s online behavioral intervention was effective at reducing chronic back pain among its participants. However, they also found that the company’s approach could be beneficial for people dealing with other types of musculoskeletal disorders. 70% of the participants were able to maintain their physical activity after 2 months without the help of a coach.
The company is definitely making some headway, with notable companies such as Kraft Heinz, Walgreens, and Red Bull joining its platform.
US Foods has more than 400,000 of its employees enrolled with Hinge health. They also saw an increased of 300% in revenues in 2020 alone.
Hinge Health Funding, Valuation, and Revenue
Founded in 2015 and raised a total of $8.3 million from investors including Atomico Ventures, Accel Partners, FirstMark Capital, and others. The startup experienced rapid growth in the following years.
The company raised $24 million in Series C funding in 2019. This funding round was led by notable investors Insight Partners and First Round Capital. Following the round, they plan to increase their focus on developing new products and services to improve patient outcomes. They also plan to continue expanding their work to develop solutions for musculoskeletal disorders.
With the majority of people staying at home because of the coronavirus outbreak, Hinge’s business grew significantly. During the year, they experienced a 300% increase in revenue, setting them apart as one of the top players in the industry. In 2020, Hinges saw incredible success, increasing its revenue fourfold.
With $90 million in Series C financing, they now have a $420 million market cap. Investors recognize their increasing success, so they want to get involved.
This past summer, the company raised $300 million in its Series D funding from Coatue Management and TigerGlobal. With this investment, the company achieved a $3 billion market cap, which is almost six times larger than the last time they were valued at $1 billion. This new value allowed them to become one of the most highly valued private companies in America.
According to a report by Reuters, the startup has already exceeded $100 million in annual revenue, and they anticipate doubling that number within the next few years. Additionally, the startup just announced its intention to go public sometime in 2022.
The company has earned over $426 million in venture capital so far. Based on its current pipeline, Hinge Health predicts that its revenues will triple by the end of this calendar year.
Is Hinge Health Profitable?
Hinge Health is a health startup with an ambitious mission. However, the team is dedicated to improving people’s lives through digital connections to top-quality care.
Since its launch in 2015, Hinge health has been growing at an impressive rate, creating a name for itself in the marketplace. They’re expected to open up to the public sometime in 2023.
With a strong reputation behind it, Hinge Health has every chance of becoming one of the leading health companies out there.
Conclusion: How Does Hinge Health Make Money?
Here’s what we learned from our research: They generate their revenues by offering paid services for people who want to get fit.
Overall, Hinge Health looks to be a promising startup. It has both brainpower and muscle and has already proven itself in such a short period of its existence.
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