Digital physical therapy startup Hinge Health is preparing to submit paperwork for an initial public offering, potentially as soon as next week, CNBC has reported.
Hinge Health assists patients suffering from musculoskeletal injuries, ranging from minor sprains to chronic pain, in recovering from their homes. Its IPO has been eagerly anticipated as a significant event within the struggling digital health industry, which has been affected by the consequences of the Covid-19 pandemic.
The IPO may occur as early as April, but schedules may still adjust due to uncertainties related to tariffs, according to a source familiar with the situation. Hinge Health, which partners with employers, reported $390 million in revenue for 2024, generated $45 million in free cash flow, and achieved gross margins of approximately 78%, the source disclosed.
The San Francisco-based startup has secured over $1 billion in funding from investors like Tiger Global and Coatue Management. By October 2021, Hinge Health had a valuation of $6.2 billion. The physical therapy market is projected to be around $70 billion by the end of the decade.
A representative from Hinge Health opted not to provide comments.
Co-founders Daniel Perez, the CEO, and Executive Chairman Gabriel Mecklenburg established the company in 2014 after becoming disillusioned with their own physical rehabilitation experiences, according to the company’s website.
Hinge Health members can use virtual exercise therapy and a device called Enso, which delivers electrical nerve stimulation designed as an alternative to pain medications such as opiates. In recent years, the company has integrated generative artificial intelligence to expand its care team.
The company directly competes with other digital health startups like Sword Health, yet Hinge Health is approximately four times larger than its nearest competitor, the source indicated.
Investors will closely monitor whether Hinge Health’s IPO acts as a positive indicator for the industry. Hinge Health offers a digital program for musculoskeletal (MSK) care led by physical therapists. This service is provided at no extra cost to eligible participants and includes access to the Hinge Health mobile application and a dedicated care team, which comprises a board-certified health coach and physical therapist.
This digital initiative focuses on exercise therapy tailored to address a variety of MSK issues, and it can be performed anywhere at any time.
The program features:
- personalized exercise therapy to enhance strength and mobility in concise 15-minute sessions,
- individual health coaching for motivation and support via text, email, or phone, and
- engaging educational content to inform participants on managing their specific condition, treatment choices, and more.
Hinge Health is reshaping the treatment and prevention of pain by digitally connecting individuals with both expert clinical care and in-person support, utilizing advanced technology, AI, and a team of specialists to offer personalized guidance directly through their mobile devices. Our method has been shown to reduce pain by 68%, prevent 42% of new opioid prescriptions, and avoid over half of joint replacement surgeries. With availability to 18 million people, Hinge Health is trusted by prominent health plans and employers, including Land O’Lakes, L.L. Bean, Salesforce, Self-Insured Schools of California, Southern Company, US Foods, and Verizon.
Hinge Health has published its fifth annual State of Musculoskeletal (MSK) Care Report, emphasizing the advantages of digital care for joint and muscle pain in contrast to conventional treatments. With nearly 40% of adults in the U.S. suffering from MSK issues that result in an estimated annual healthcare cost of around $381 billion, digital solutions like Hinge Health can address the gaps in affordability, awareness, and accessibility, improving quality of life while lowering expenses.
“Much of the healthcare spending aimed at treating musculoskeletal issues is directed towards expensive interventions such as imaging and surgeries. Providing individuals who are in pain with early, evidence-based conservative care like exercise therapy and lifestyle modifications can lead to quicker recovery and help prevent unnecessary surgeries and interventions,” stated Jeff Krauss, MD, Chief Medical Officer at Hinge Health. “The results from this year’s State of MSK Care Report emphasize that digital care can serve as a convenient, engaging, personalized, and effective option for those experiencing pain.”
The report highlights key findings that illustrate how digital care is bridging the gaps left by traditional care, showcasing that digital care provides:
- Convenience. Approximately three-quarters of individuals referred to conventional physical therapy (PT) do not attend a session. Hinge Health’s on-demand digital platform allows members to select when and where they begin and maintain their care, with 67% of members starting their programs on the same day they enroll.
- Habit Formation. Hinge Health has examined years of engagement data and discovered that members completing six exercise therapy sessions within the initial two weeks are more likely to reach a “habit point” and adhere to the program over the long term, as well as experience more significant initial pain relief.
- Personalization. MSK pain is seldom confined to a single area. More than 60% of Hinge Health members experience chronic pain in multiple body regions, illustrating the flexibility of digital care to cater to individuals’ unique and evolving pain experiences.
- Real Outcomes. Research indicates that Hinge Health members undergo 56% fewer spinal fusion surgeries, 73% fewer knee replacements, and 50% fewer hip replacements compared to individuals receiving traditional care.
This year’s report utilizes internal insights collected over the past decade, during which Hinge Health has provided care to over one million members who have completed more than 59 million treatment sessions. Analyses of this anonymized member data are supported by member testimonials, clinical studies, surveys, and publicly available research.
About Hinge Health
Hinge Health is a prominent platform for musculoskeletal care, aimed at those looking to treat and prevent joint and muscle pain. We combine our software-driven, AI-enhanced delivery model and wearable devices with specialized clinical care (including licensed physical therapists and board-certified health coaches) to assist individuals in overcoming pain. Hinge Health members have reported an average pain improvement of 68% and a 58% decrease in depression and anxiety following a 12-week program.