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Lessons from Forward Health: How direct primary care is the future of health care

Christopher Habig, MBA
Conditions
November 24, 2024
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In the rapidly evolving landscape of health care, startups promising disruption often make headlines. But not all disruption leads to success. Forward Health, once hailed as a pioneer with its ultramodern clinics and AI-driven “doctor-in-a-box” CarePods, recently announced its abrupt closure. Despite raising over $650 million in funding, Forward’s inability to deliver on its ambitious promises is a case study in the pitfalls of prioritizing technology over patients.

The story of Forward Health serves as both a cautionary tale and a wake-up call for the health care industry. While the company sought to revolutionize primary care with flashy clinics and cutting-edge automation, it missed the mark on what patients truly value: trust, accessibility, and affordability. At Freedom Healthworks, we believe that these qualities are the foundation of successful health care, and the direct primary care (DPC) model is proof that you don’t need million-dollar machines to create meaningful change.

What went wrong at Forward Health

Forward Health started with a bold vision—create a futuristic health care experience blending technology and convenience. From body scanners that promised instant vitals to self-service blood draws and DNA testing in its CarePods, the company aimed to reimagine the doctor’s office. But somewhere along the way, the tech-first approach became a liability.

The company’s CarePods, for instance, were designed to replace traditional clinics with an AI-powered, standalone kiosk. They cost over $1 million each to produce, yet routinely failed to deliver the promised seamless experience. Blood draws didn’t work, patients were left confused and frustrated, and logistical challenges limited Forward to just five CarePods instead of the 3,200 it promised to launch within a year. Worse, the sterile, impersonal atmosphere of these pods alienated patients, some of whom compared the experience to a scene from Black Mirror.

Meanwhile, Forward’s clinics—once its flagship offering—were left empty as the company redirected resources to its CarePods. Staff layoffs followed, and high membership fees of $150 per month became increasingly difficult to justify for a subpar experience. In the end, Forward burned through its cash reserves and was forced to shut down, leaving patients scrambling to find new providers.

What we can learn from Forward Health’s closure

Forward’s failure underscores an important truth: health care innovation cannot ignore the human connection. Patients want more than technology—they want a doctor they can trust. They want care that’s affordable, accessible, and personalized. These are the very qualities that direct primary care (DPC) offers.

The problems that plagued Forward—high costs, impersonal care, and unsustainable growth—are precisely what DPC is designed to address. DPC physicians prioritize patient relationships, offering same-day or next-day appointments, transparent pricing, and direct communication. By removing insurance bureaucracy and keeping patient panels small, DPC practices can focus on delivering the kind of care patients actually need.

How $650 million could have transformed primary care

Forward Health raised an astounding $650 million over its lifetime, yet failed to make a meaningful impact on patient care. To put this into perspective, with an average investment of less than $350,000 to $500,000 per practice, we could have created between 1,300 and 1,857 or more FreedomDoc Health DPC practices with the same amount of funding.

Imagine the difference that could have made:

  • Nearly 2,000 communities served with accessible, affordable health care.
  • Thousands of physicians empowered to deliver patient-first care without insurance interference.
  • Millions of patients benefiting from longer appointments, direct access to their doctor, and a health care system built on trust and transparency.

This comparison underscores the efficiency of the direct primary care model and highlights how resources can be better allocated to achieve tangible, meaningful results in health care.

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Why DPC is leading the charge in health care

We’ve been helping physicians embrace the DPC model for years. Our approach stands in stark contrast to Forward’s tech-driven missteps. While Forward invested millions into shiny gadgets and mall kiosks, we invest in people—physicians and their patients.

We empower doctors to build thriving, sustainable practices by handling the operational burdens that often weigh them down. From marketing and patient acquisition to vendor management and financial analytics, we provide the tools and support physicians need to succeed. And unlike Forward, we ensure that these practices are built with scalability and sustainability in mind, not flashy gimmicks that look good in a pitch deck but fail in real-world applications.

The results speak for themselves. DPC practices report steady patient growth, improved retention rates, and lower operational costs. Patients, in turn, enjoy a health care experience that’s personalized, affordable, and rooted in trust.

A health care model that works

Forward Health’s closure is a reminder that health care isn’t about chasing the latest tech trend—it’s about meeting the needs of real people. Patients don’t need futuristic pods or body scanners that don’t work; they need a doctor who listens to them and a system that makes care accessible and transparent.

Direct primary care is that system. As we continue to grow the DPC movement, we remain committed to building a health care model that works for everyone—patients and physicians alike.

We can create a system that puts people first, not technology. Because at the end of the day, health care is about healing, not hardware.

Christopher Habig is co-founder and CEO, Freedom Healthworks, a company dedicated to scaling the direct primary care (DPC) practice model, putting doctors back in control of patient care. Christopher’s journey into health care innovation was sparked by the frustration of seeing family members struggle among the insurance and hospital-dominated industry. He envisioned a system where health care could be accessible, high-quality, and affordable. This vision led to the inception of Freedom Healthworks, which provides the tools, technology, and support for doctors to run successful DPC practices. Christopher dedicates his time to educating both consumers and health care providers about the benefits of the DPC model through his podcast, Healthcare Americana, leading the Indiana Free Market Medical Association, and being a contributing member of the Indiana Physicians Health Alliance. His goal is to create a future for Americans where health care is synonymous with the caring, individualized attention that was its original hallmark.

He can be reached on Facebook, X @FreedomDPC, LinkedIn, and Instagram @freedomdoccare.

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