Juno Medical
Chronic disease: asthma, cancer, heart disease, and diabetes, are the leading drivers of mortality in the United States. Chronic disease accounts for 81% of hospital admissions, 91% of all prescriptions filled, and 76% of all physician visits. In terms of spend, 75% of total domestic expenditure is in treating these chronic, preventable diseases that are driven by socio-economic and lifestyle factors. In publicly funded health programs, spending on chronic disease represents an even greater proportion of total spending: more than 99% of Medicare and 83% of Medicaid. Primary care, which is the most informal clinical setting, as well as the lowest level of intervention, represents a crucial opportunity for healthcare providers to build trust and educate their patients on the manner and forms of living that will ameliorate preventable disease. We know that there are imbalances in primary care- starting from the fact that we simply do not have enough doctors. Despite near consensus around the world that primary care is a critical component of any healthcare system, there is a considerable imbalance between primary and specialty care. In the USA among 954,224 total doctors of medicine, 32% of the total and 39% of actively practicing physicians were primary care physicians. The proportion of specialists was over 60% of all patient care physicians.
Enter: Juno Medical, which is building the next iteration of digitally-enabled primary care that is purpose built for the whole family. Juno’s inclusive, comprehensive care services provide a one-stop solution for patients and their families’ day-to-day care needs. The company’s hybrid clinics feature exceptional hospitality, modern technology, and transparent prices that won’t break the bank. After crossing 8,000 lives under care across two locations (Harlem, Brooklyn), Juno will utilize their $12M Series A raise to support HQ and clinical headcount expansion as the company enters target neighborhoods across the country such as Inglewood (Los Angeles), Greenwood District (Tulsa), and Reynoldstown (Atlanta). The raise will also help the company bolster its tech stack to support the launch (Q3‘22) and maintenance/iteration of its asset-light clinical services that will offer virtual urgent care, mental health, digital monitoring and lab & imaging. These additional services will help augment both the company’s comprehensive care model and care margins.
Why We Invested: We invested because of our conviction in three central beliefs: 1) having a relationship with a primary care doctor is important and necessary, 2) having a relationship with a primary care physician is more difficult than you would think, and 3) a company like Juno Medical can tangibly make the difference in communities that have not had access to these levels of service and technology.
On a personal level, we ourselves know about how having a diverse team can make all types of people feel like they’re being recognized. When we were talking about this company, Marcus visited the clinic in Harlem and met a couple of patients and staff as part of an informal surprise pop-in. The patient said “Juno makes Harlem feel like TriBeca.” Similarly, Brandon‘s extended family experienced the healthcare system from the perspective of recent immigrants, and sometimes lacked the ability to both navigate the healthcare system as well as defend their own interests and dignity in it, resulting in preventable illnesses being left unchecked for far too long. It was at that point that we knew that a company like Juno could make a difference that was sorely needed.
Massive Market Opportunity
In 2020, thé healthcare market experienced robust M&A activity from both established and newer players, signaling that the consolidation that we’ve seen, driven by vertical and horizontal integration, will continue. OneMedical, this past quarter, was acquired by Amazon for 3.9B. The OneMedical acquisition, for Amazon, represents the third largest acquisition it has ever taken, only surpassed by Whole Foods and MGM. The same trends that are driving Amazon’s acquisition of OneMedical are set to continue. Industry tailwinds such as an expansion in Medicare Advantage will continue to drive VBC implementation for the coming years, an important sector trend in which Juno could participate.
Team
Akili is a tremendously pedigreed founder who spent the initial part of his career as a practicing Cardiothoracic Surgeon in New York City at Columbia. After receiving his undergraduate degree from Georgetown, Akili pursued his passion for healthcare by receiving a medical degree from the Weill School at Cornell. After realizing that his passion was on the business-side of medicine, Akili attained his MBA from Columbia Business School, going on to work at McKinsey where he led a team that helped the nation’s largest payers construct and execute $1B+ value-based care (VBC) plans. After spending time with Akili, we realized that not only was Akili’s mission special, but the way that he had gone about building his company was going to create outsized value for shareholders, communities, and the health system at large.
We are so excited to be on the journey with Juno, and look forward to updating you on their progress.