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Legacy health systems might have trouble competing with D2C healthcare upstarts

The news: Rush University System for Health in Chicago is launching a subscription health model for patients seeking virtual urgent care.

Digging into the details: Rush is offering 24/7 telehealth care for more than 40 common conditions.

  • Consumers can pay $19 per month or $189 per year for a Rush Connect + membership. Visits with doctors are an added cost.
  • An AI assistant from digital health company Fabric helps members find a doctor, book an appointment, or figure out a bill.

Why it matters: Rush is now competing in the subscription healthcare market with companies such as Hims & Hers, Ro, and Amazon. Rush’s chief medical officer told Modern Healthcare that health systems shouldn't “cede this part of the market to new entrants”—a clear signal that incumbent providers see D2C healthcare upstarts as a real threat to their business. Rush is joining a few other traditional health systems, including ChristianaCare and NYU Langone, that have rolled out D2C services to improve patient access and ward off disruptors.

Our take: Legacy health systems are playing catch-up to D2C healthcare companies, and likely can’t offer a better customer experience. For instance, Rush is promoting its AI assistant that helps patients quickly find care, but D2C players are already addressing this friction point. Amazon’s telehealth business connects consumers with a virtual provider in as little as 30 minutes, while Hims and Ro allow customers to manage appointments, services, and payments in their apps.

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