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HIMSSubstantive discussion · 3/5Save idea

Verticalized diagnostics as a healthcare customer acquisition funnel

The guest argued that verticalizing at-home blood collection and lab processing allows healthcare platforms to offer low-cost diagnostics as a powerful customer acquisition tool.

The argument

By owning the proprietary collection devices and processing labs, the platform can lower the cost of a comprehensive 50-biomarker panel to near-zero. This enables them to offer diagnostic testing for free or cheap to members, creating a high-margin preventative funnel that feeds patients into personalized treatment plans.

The thesis, stress-tested
✓ What validates it
  • Launch of a free or near-cost diagnostic testing tier within the Hims & Hers membership model
  • Expansion of processing labs beyond the initial New Jersey facility
▸ Risks discussed
  • High capital expenditure required to build out and scale proprietary lab processing facilities
  • Regulatory hurdles associated with at-home diagnostic devices and clinical lab operations
Hear it yourself
"You can then peel that off and you can mail it to New Jersey, which is where we have a lab processing facility, and we'll have a couple others in the next year and two, and run a full panel, you know, 50 biomarkers, and it will cost us, like, almost nothing."
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