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Why Forward Health Failed: Lessons for Tech-Driven Primary Care

Author

Jared Dashevsky, MD
November 17, 2024 • Estimated Reading Time: 10 minutes

GRAND ROUNDS

Why Forward Health Failed: Lessons for Tech-Driven Primary Care

Forward Health, a tech-enabled primary care startup, has shut down abruptly. Despite their ambitious vision and innovative approach, Forward joins the graveyard of other health tech primary care companies that couldn’t sustain operations in a critical space that’s inherently resistant to rapid, tech-first transformation.

In this article, I’ll explore Forward Health’s rise and fall, dissect the reasons behind its closure, and examine the ripple effects on patients, physicians, and the broader healthcare system.

Background: Forward Health

Forward Health was a Direct Primary Care (DPC) company founded in 2017. “Direct primary care” means they were subscription-based—no insurance involved (see a prior article I wrote on DPC: Subscription Health: The Rise of Direct Primary Care). The company was perhaps best known for bringing an Apple Store-like experience to primary care: tech-enabled, streamlined, and humanized.

For around $150/month, Forward members could access in-person and virtual visits, a 24/7 care team, and specialized programs. Some of their specialized programs included the following:

  • Weight management

  • Heart health

  • Women’s health

Forward raised around $660 million, including a $100 million Series E round in November 2023 to build and roll out new CarePods.

CarePods

The goal of these CarePods was to use AI and other technology to create an “autonomous doctor’s office.” These CarePods had biometric body scans, blood testing capabilities, and diagnostic screening sensors to screen for diseases and provide health evaluations.

Here’s an example of the workflow:

  • You walk up to the CarePod and unlock it with Forward’s app.

  • Inside, there’d be a large touchscreen and a chair.

  • If you chose “heart health” on the app, for example, a hidden drawer provided a heart sensor, which the touchscreen instructed you how to use.

  • The diagnosis was then displayed on the touchscreen, and if any further treatment were needed, one of Forward’s doctors would review the findings and instruct on the next steps in real-time.

Forward planned to launch 3,200 CarePods in 2024. They’d first focus on major metropolitan areas and place CarePods in malls, gyms, and offices. So, for just $99/month, you could have hopped into one of these CarePods and checked them out.

Forward Health Shuts Down

Eight years after their founding, and nearly a year following their $100 million Series E round to build and roll out CarePods, Forward Health abruptly announced their shutdown. There has been much speculation on social media and in articles over why they shut down so abruptly. The most common theme, which is usually how the story goes with all startups that shut down, is that they ran out of money.

Out of all the commentary, I liked Jay Parkinson’s take the best. I’ll summarize it below:

  • Misaligned Consumer Expectations and Payment Model: Forward's business model was fundamentally flawed. They charged $150/month for unlimited primary care, which is unsustainable given the high costs of running a tech-enabled, brick-and-mortar clinic.

  • Investor-Driven Demand vs. Consumer Reality: The company relied heavily on venture capital funding rather than building a profitable business model. This made them vulnerable when the funding environment tightened and consumer demand just wasn’t there.

This kind of service was something investors would want, but not something those outside the bubble would want.

  • Target Audience Misfit: Forward tried to create demand for a problem that didn’t exist for their target demographic—young and healthy individuals.

So there you have it. Three succinct reasons why Forward Health, a tech-enabled, brick-and-mortar, and futuristic direct-primary-care startup, didn’t flourish.

Dashevsky’s Dissection

Forward Health is yet another example of a prominent, ambitious, innovative startup that couldn’t sustain operations in the primary care space. Their closure shouldn’t be shrugged off—it impacts patients and physicians alike and holds important lessons for the future of primary care innovation.

First, Forward Health’s closure highlights a fundamental disconnect between innovation and the realities of patient care. While their model relied on cutting-edge technology, what patients truly value is time with their physician. Patients will pay for this. We know that. Forward offered convenience (which patients loved) and flashy tech, but the latter features—like the CarePod—couldn’t substitute the human connection that defines high-quality care.

The abrupt shutdown left patients scrambling to find new primary care providers without notice, creating a particularly burdensome disruption in areas already facing primary care shortages.

This is what frustrates me most about startups and retailers in the primary care space. When cash flow dries up, they shut down—quickly and without adequate plans for their patients. Walmart did this. Walgreens’ VillageMD is doing this. Forward just followed suit. In the tech world, this approach might be acceptable. But in healthcare, where patients’ lives and well-being are at stake, closing shop must come with a transition plan. As we know, disruptions in care are where major harm is done to patients.

Second, for physicians, Forward’s story is a reminder that technology must enhance—not overshadow—the physician-patient relationship. High-tech tools like AI-powered diagnostics have tremendous potential, but their true value lies in augmenting care rather than acting as standalone solutions. Forward’s CarePods, while innovative, missed the mark by focusing on novelty rather than addressing core physician pain points, such as administrative burdens or time constraints. Future innovations must prioritize tools that enable physicians to spend more time with patients—because that’s what patients want.

On a systemic level, Forward’s closure speaks to deeper issues in primary care. The field remains undervalued and underfunded, making it difficult for even the most well-funded startups to succeed. Forward’s downfall is part of a larger trend, as seen in the struggles of retail health giants like Walgreens’ VillageMD clinics and CVS Health’s recent closures. These challenges reveal the difficulty of balancing accessibility, affordability, and profitability in tech-enabled and retail healthcare models.

For the industry to move forward, hybrid models that integrate insurance, target specific patient populations, and leverage technology to enhance—not replace—human interactions will be critical. Forward Health’s rise and fall is a sobering reminder: successful healthcare innovation requires not just technology but trust, accessibility, and an unwavering focus on meeting the fundamental needs of both patients and physicians.

In summary, Forward Health’s abrupt closure illustrates the challenges of sustaining tech-first innovation in the complex and undervalued primary care space. Their fall joins a broader trend of retail health and health tech struggles, highlighting the need for sustainable, patient-centered approaches that balance accessibility, affordability, and innovation.

LISTEN TO PODCAST VERSION

Listen to the podcast version of my article, where my article is discussed in even simpler language so you can understand what’s happening. Check it out👇️ 

This is an AI-generated podcast created solely on Healthcare Huddle content, vetted by me to ensure quality that’s on par with humans.

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