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Healthcare

Denver-based direct primary care startup files to go public 

 

A little over a year after One Medical began trading, another direct primary care startup is lining up to go public.

Denver-based Everside Health Group recently filed a prospectus with the Securities and Exchange Commission. The company has not yet priced its stock, but it plans to trade on the New York Stock Exchange under the ticker “EVSD. ”

The primary care chain operates more than 340 clinics across 33 states, and charges a per-member per-month fee for its services. Formerly known as Paladina Health, it was started in 2010 as a subsidiary of DaVita, before it was sold to New Enterprise Associates (NEA) eight years later. After raising $165 million in funding from NEA, it acquired Activate Healthcare, and more recently acquired Healthstat, a provider of employer-sponsored health centers.

Everside has more than 300 clients, including self-insured companies and unions. It’s among the larger direct primary care providers, though it’s still smaller than One Medical.

Last year, it brought in $113.38 million in revenue, a 40% increase from 2019. It also reported a net loss of $2.9 million in 2020, an improvement from its $19.6 million net loss the previous year. As of March 31, the company had accumulated a total of $40.2 million in debt.

By comparison, One Medical reported a total of $227.4 million in revenue in 2019, the year before it went public, and reported a net loss of $52.45 million.

Everside plans to grow through opening additional health centers and through striking partnerships with hospital systems. The company started working last year with nonprofit hospital giant CommonSpirit Health to give employers access to onsite or virtual clinics.

Morgan Stanley, J.P. Morgan, Goldman Sachs, BofA Securities and William Blair will serve as book-running managers for the IPO.

Photo credit: jxfzsy, Getty Images

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