Rocket Doctor: Expanding Access to Healthcare with California Managed Care Plan Partnership

Rocket Doctor, a rapidly growing digital health platform, has signed a definitive agreement with a California managed care plan serving approximately 450,000 Medicaid members. This strategic partnership aims to provide tele-urgent care, specialty services, and primary care to a large number of patients, aligning with Rocket Doctor's mission to break down barriers to healthcare access. The partnership is expected to generate additional annual recurring revenue (ARR) of approximately US$1.2 million, assuming only 10% utilization per year.

Rocket Doctor's innovative virtual care platform will support the managed care plan's extensive provider network of 14,000 clinicians and multiple hospitals, ensuring that patients can access high-quality medical care from the comfort of their homes. The platform's unique tools, including artificial intelligence (AI) and large language models (LLMs), will enhance the patient care experience by making the practice of medicine more efficient while reducing unnecessary emergency department (ED) visits, reducing wait times, and ensuring timely specialist referrals.

Dr. Bill Cherniak, CEO and Founder of Rocket Doctor, commented on the partnership, "This represents a significant step forward in our mission to break down barriers to healthcare access for patients at greatest need across California." The partnership with the managed care plan allows Rocket Doctor's physicians to become fully credentialed, accepting patients from the plan and billing directly for reimbursement at negotiated rates. This integration into the healthcare system enables Rocket Doctor to provide care to a larger number of patients and further expand its reach.

The partnership is expected to generate an estimated total billable value of services of US$4.41m, based on US$98 per visit. The anticipated gross margin in Year 1 is US$18/visit, indicating a gross profit of US$18 after covering the costs of providing the service. This partnership is a testament to Rocket Doctor's commitment to expanding access to healthcare and enhancing patient care through innovative digital health solutions.




In conclusion, Rocket Doctor's partnership with the California managed care plan is a strategic move that aligns with the company's mission and growth strategy. By expanding access to healthcare and enhancing patient care, Rocket Doctor is poised to generate significant financial benefits while solidifying its position in the digital health market. Investors should closely monitor Rocket Doctor's progress as it continues to execute on its growth strategy and deliver value to its shareholders.