Hinge Health: Pioneering a Patient-Centric Digital MSK Clinic with Over $400M Raised

On March 9, digital health unicorn Hinge Health announced the acquisition of medical device manufacturer Enso to expand its musculoskeletal (MSK) treatment solutions. Two months prior, Hinge Health secured $310 million in Series D financing, reaching a valuation of $3 billion and planning an IPO in 2022.

Hinge Health was co-founded in 2015 by clinical researchers Daniel Perez and Gabriel Mecklenburg after they overcame personal challenges with musculoskeletal (MSK) conditions. The company comprises a diverse team of scientists, medical experts, and engineers, and currently employs more than 500 people. Originally headquartered in London, it later relocated to San Francisco.

Hinge Health positions itself as pioneering the world’s most patient-centric digital clinic. Its mission is to address one of the most challenging issues in today’s healthcare landscape: musculoskeletal (MSK) conditions. As a leader in the field, it operates as a digital MSK clinic (Digital MSK Clinic™) centered on digital physical therapy and offers the industry’s most comprehensive clinical care model.

According to Crunchbase data, the company has completed five rounds of financing totaling $436 million to date.

On July 24, 2017, Hinge Health announced the completion of an $8 million Series A financing round. The round was led by the London-based venture capital firm Atomico, with participation from Eleven Two Capital, The Vertical Group, and others. The funds will be used to advance digital initiatives for the non-surgical, preventive management of musculoskeletal (MSK) conditions, helping patients avoid unnecessary invasive surgeries.

On August 9, 2018, Hinge Health secured $26 million in Series B financing. The round was led by Insight Venture Partners, with participation from previous investor Atomico.

On February 4, 2020, Hinge Health announced that it had raised $90 million in Series C financing. The round was led by Bessemer Venture Partners, with participation from Lead Edge Capital. Hinge Health will use the funds to expand its musculoskeletal (MSK) care offerings, advance surgical prediction capabilities, and enhance member support.

On January 5, 2021, Hinge Health completed a $310 million Series D financing round. The round was led by Coatue and Tiger Global, with participation from Bessemer Venture Partners, Lead Edge Capital, Insight Partners, Atomico, 11.2 Capital, Quadrille Capital, and Heuristic Capital.

Source: Artery Orange

On March 9, 2021, Hinge Health announced the acquisition of Enso, a manufacturer of wearable devices for pain relief.

In the past, non-invasive electrical stimulation modalities delivered low-frequency pulses, offering limited pain relief. In contrast, high-frequency pulse devices can provide more direct and sustained analgesic effects but require surgical implantation. Enso’s patented breakthrough lies in delivering high-frequency, non-invasive therapy, providing non-addictive pain relief within seconds.

Jeffrey Krauss, MD, Chief Medical Officer at Hinge Health, stated, “Enso’s immediate, clinically validated pain relief complements our existing motion-sensor technology and integrated clinical team.” Hinge Health Enso helps patients avoid elective surgeries and unnecessary opioid prescriptions. Its advantages include:

Potent, long-lasting, and non-addictive:In clinical trials, Enso demonstrated analgesic efficacy three times greater than that of conventional opioids, with no adverse effects. Among patients who had used Hinge Health Enso, nearly 9 out of 10 experienced clinically significant pain relief, with an average pain reduction of 56% per patient.

Convenient and Fast:Enso is completely wireless and can be worn anywhere on the body, even during exercise.

High adaptability, reduced disability duration:Over time, Enso will provide patients with personalized stimulation patterns to improve pain relief and help them return to work more quickly.

Included in the scope of workers' compensation:Enso already covers workers' compensation claims, and Hinge Health will continue to invest in this area.

Dr. Amitabh Gulati, President of the World Society of Pain Medicine, stated, “Integrating Hinge Health’s digital MSK clinic with Enso’s non-invasive high-frequency pulse technology opens up new frontiers in pain management.”

Currently, addressing musculoskeletal (MSK) issues requires aggregating solutions from various vendors, including preventive care, wellness programs, remote physical therapy (PT), digital initiatives, expert medical opinions, and Centers of Excellence (COEs). Hinge Health, by contrast, offers a comprehensive digital MSK clinic that spans all aspects of MSK care and provides tailored programs to meet the needs of different patients, covering early prevention, acute pain, chronic pain, and surgical rehabilitation.

B2B2C Business Model and 100% Customer Retention Rate

According to previous analytical reports by VCBeat, in terms of business model, Hinge Health primarily targets corporate employers, adopting a B2B2C model. Specifically, Hinge Health is mainly responsible for product research and development, then delivers its products to end users through the healthcare plans of various companies.

Hinge Health, a leader in the musculoskeletal (MSK) market, provides digital MSK solutions for healthcare plans of major corporations. Among five enterprise employers with digital MSK solutions, four have chosen to partner with Hinge Health. It collaborates with Fortune 500 companies such as Boeing, Salesforce, and US Foods, as well as numerous health plans and public sector clients. Currently serving over 300 clients, Hinge Health has never lost a customer to date.

According to TechCrunch, Hinge Health’s customer base quadrupled in the 12 months ending July 2020. Additionally, its revenue surged by 300% in 2020. Based on its current sales pipeline, the company expects to triple its revenue again in 2021.

MSK Treatment Using Wearable Sensors and 1-on-1 Health Coaching

Hinge Health’s digital MSK clinic boasts a comprehensive clinical team and technology stack, delivering clinically validated musculoskeletal (MSK) care tailored to every individual and body part. Its care pathways combine a mobile application with wearable sensors, enabling coaches to provide remote physical therapy and behavioral health guidance to patients. Specifically:

Tablets and Wearable Sensors:Provides users with wearable devices and tablets that are ready to use out of the box. Its sensors and computer applications offer real-time feedback and tracking for patients during stretching and exercise sessions.

Personalized Exercise Therapy:Patients will receive instruction during 15-minute sessions, with difficulty increasing accordingly as they progress.

Unlimited One-on-One Health Coaching:Coaches will provide personalized support via text message, email, or phone to ensure patients adhere to the plan and sustain behavioral changes to achieve their goals.

Source: Hinge Health Official Website

Chronic musculoskeletal (MSK) pain carries a substantial global disease burden and economic impact. MSK conditions account for one-sixth of total healthcare expenditures in the United States, representing the largest cost driver in healthcare spending, with the market exceeding $100 billion.

Current recommendations for the treatment of chronic pain indicate that addressing the physiological, psychological, and social dimensions of pain is most effective, and such interventions are advised prior to relying on pharmacotherapy, imaging, or surgery. However, most patients do not receive adequate care, leading to the unnecessary, and even excessive, use of opioids and surgical procedures.

Hinge Health aims to reverse this trend by leveraging technology and data. Clinical validation from four peer-reviewed studies demonstrates that its digital therapeutic can prevent two out of every three surgeries, while also significantly reducing chronic pain, opioid use, anxiety and depression, and absenteeism.

Notably, researchers from the University of California, San Francisco (UCSF) and Stanford University published the world’s largest digital musculoskeletal (MSK) cohort study to date (N=10,264), which demonstrated that Hinge Health’s digital solution directly reduces back and joint pain. Participants in the Hinge Health program experienced an average 69% reduction in pain—four times greater than that achieved with opioids—as well as a 58% reduction in depression and anxiety, a 61% improvement in work productivity, and a 67% lower likelihood of undergoing surgery. The 12-week adherence rate among participants was 73%, three times the industry average, with each participant completing an average of 35 exercise therapy sessions.

Source: Hinge Health Official Website

A medical claims study conducted by US Foods found that musculoskeletal (MSK) surgical expenditures among Hinge Health participants decreased by 56%, compared with a 30% rate among non-participants. A three-year medical claims analysis of California employers showed total savings of $4,523 per MSK participant.

Daniel Perez, CEO and Co-Founder of Hinge Health, stated, “As a company founded by researchers, our entire team is committed to holding ourselves to higher standards and demonstrating to employers that Hinge Health is the optimal solution for addressing high musculoskeletal care costs.”

Following its Series D funding round, Daniel Perez stated, “Hinge Health is eliminating disparities in healthcare quality, enabling individuals to receive better treatment through consistent, digital-first clinical care regardless of where they live. We are deepening our musculoskeletal (MSK) clinical capabilities by developing advanced technologies and expanding our clinical team, which includes physicians, physical therapists, and health coaches.”