Silicon Valley’s northern star in digital health, Forward Health, aimed to revolutionize patient care with prevention-focused clinics and the 'World's First AI Doctor's Office.' Despite its ambitious vision and strong investor backing, the company's sudden shutdown in November 2024 highlights the gap between advanced technology and the human side of healthcare. Does this indicate that patients aren’t ready for the digital future envisioned by health startups?
The rise and fall of Forward Health
In one of the most striking failures of a digital health startup in recent years, Forward Health unexpectedly announced its closure in November 2024. After eight years of operation, $650 million in VC funding, and a $1 billion valuation in 2023, the journey toward future healthcare is over.
Founded in 2016 by former Googler Adrian Aoun, Forward Health’s mission was bold: to deliver a modern, entirely digitized healthcare model focused on prevention. The company’s flagship clinic in San Francisco promised to eliminate bureaucratic inefficiencies while delivering best-in-class, digitally supported care. Patients enjoyed unlimited access to doctors and high-tech services like state-of-the-art body scanners for monitoring key health parameters. The service, however, came at a premium, costing $149 per month.
Forward Health drew significant attention not only for its innovative approach but also for Aoun’s rhetoric about fixing broken healthcare. By 2023, the company’s ambitions expanded with the introduction of Forward CarePods, self-service health kiosks driven by artificial intelligence. The futuristic capsules – called by Aoun “the world's first AI doctor's offices – promised to automate preventive care, including diagnostic tests like blood and DNA analysis. Costing approximately $1 million each to produce, the pods were intended to bring preventive healthcare to malls, gyms, and workplaces. Yet, despite its technological advancements, Forward Health struggled to gain traction.
Where the vision and strategy fell short
Forward Health’s collapse was driven by a combination of interrelated challenges. At its core, the company misunderstood the fundamental dynamics of healthcare – an industry centered on human interaction and trust. While technology can enhance efficiency, it remains a supportive tool rather than the foundation of care.
One critical misstep was the premium price tag. Even among affluent patients in Silicon Valley, the appeal of a $149 monthly subscription for preventive care failed to resonate. The body scanners, while impressive, added little tangible value to the patient experience and care. Moreover, the futuristic health kiosks – intended to democratize access to preventive services – struggled with technical glitches, such as unreliable blood draw mechanisms. Instead of empowering patients, these sterile, ultramodern pods were perceived as confusing and impersonal.
By chasing cutting-edge technology, Forward Health neglected the relational aspects of medicine. The sterile clinics and autonomous health kiosks alienated patients who sought help and care. The company’s emphasis on automation and gadgets overlooked the irreplaceable value of patient-doctor interactions. As a result, Forward Health’s offerings failed to meet the basic expectations of care – empathy and human touch.
Does digital health miss the point of healthcare?
Forward Health’s collapse is a clear message to the healthcare and VCs looking for future-ready investments in digital health. First, technology cannot replace the human element in medicine. Innovations should complement but not overshadow the relationships that define quality care. Second, the healthcare market remains skeptical of futuristic solutions that prioritize efficiency over empathy. Patients still value personal interactions and the reassurance that comes from being treated by a human: a healthcare professional with
Additionally, Forward Health’s financial model raised concerns. The high production costs of the CarePods, combined with their limited deployment, underscored the unsustainable nature of the venture. Investors will likely approach similar projects with heightened caution, demanding more evidence of feasibility before committing funds. Well, but shouldn’t they know it already before?
Finally, the failure highlights the importance of understanding patient expectations. Healthcare is not merely a service; it is a deeply personal experience. While digital tools can enhance access and convenience, they must align with patients’ needs and preferences. Forward Health’s utopian vision of automated care faltered because it neglected these core principles.
Technology-healthcare alignment problem
The abrupt shutdown of Forward Health was widely reported in the press. According to Fierce Healthcare, Forward Health’s closure highlights key challenges in balancing innovation with sustainability. Critics pointed to the company’s heavy investment in costly real estate and its focus on tech solutions, which some felt overlooked the personal nature of healthcare delivery.
Business Insider wrote that Forward Health’s failure stemmed mainly from overreliance on the ambitious yet problematic CarePods. Former employees revealed that the AI-powered kiosks faced limited patient interest, high manufacturing costs, and technical failures, such as patients being stuck inside. In prioritizing the rollout of these pods, Forward cut costs and closed primary care clinics, further eroding its service infrastructure. Despite raising $100 million in late 2023 for this endeavor, Forward launched only three CarePods before closing, with one removed shortly after installation, marking a collapse attributed to overpromising and underdelivering.
The demise of Forward Health does not mean the “winter of telehealth” but rather a need to recalibrate its priorities. Startups must strike a balance between leveraging technology and preserving the human touch. Successful ventures will be those that integrate digital tools seamlessly into the patient journey, enhancing rather than replacing human interactions.
