DiscoverNikonomics - The Economics of Small Business244 - The Math Behind a $100M Concierge Medicine Business with Sandeep Palakodeti
244 - The Math Behind a $100M Concierge Medicine Business with Sandeep Palakodeti

244 - The Math Behind a $100M Concierge Medicine Business with Sandeep Palakodeti

Update: 2025-10-15
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MY NEWSLETTER - https://nikolas-newsletter-241a64.beehiiv.com/subscribe


Join me, Nik (https://x.com/CoFoundersNik), as I interview Dr. Sandeep Palakodeti (https://x.com/DrDeepMD).

I was excited to welcome Dr. Sandeep Palakodeti, also known as Dr. Deep, to talk about his revolutionary company, Velocity Health.

This concierge precision medicine clinic is addressing huge macro trends, particularly the demand for better healthspan and longevity. We unpack why someone would leave a top institution like the Mayo Clinic to start a business aimed at solving the "sick care" problem of American healthcare.

Dr. Deep contrasts the standard transactional 7-minute primary care visit with Velocity Health’s functional medicine approach, which focuses on root cause medicine and objective diagnostics like VO2 max, DEXA scan, and the coronary artery calcium scan. We also dive deep into the business model, exploring how Velocity Health scales as a 50 state virtual practice, utilizes the MSO PC model for regulation, and maintains an attractive CAC to LTV ratio through its recurring revenue plans.

If you’re an entrepreneur who believes preserving health is as crucial as preserving wealth, this episode is a must-watch.


Questions This Episode Answers:

1. Why did an institutional physician leave major hospitals like the Mayo Clinic to start a cash pay medical practice?

2. How does a concierge precision medicine approach fundamentally differ from a traditional 7-minute primary care visit?

3. What advanced diagnostics, like the VO2 max test, are the most critical KPIs for assessing longevity and health risk?

4. From a regulatory and business perspective, how does the MSO PC model work for healthcare startups raising outside capital?

5. How can a subscription-based healthcare service maintain an appealing CAC to LTV ratio using a longitudinal relationship model?

Enjoy the conversation!

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Love it or hate it, I'd love your feedback.

Please fill out this brief survey with your opinion or email me at nik@cofounders.com with your thoughts.

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This week we covered:

00:00 The State of Healthcare Today

05:00 Emerging Trends in Concierge Medicine

10:09 The Shift to Preventive Care

14:46 Understanding Functional Medicine

20:05 The Role of Technology in Healthcare

24:55 The Business Model of Velocity Health

30:04 Patient Experience and Engagement

34:48 Future of Healthcare and Personalization

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244 - The Math Behind a $100M Concierge Medicine Business with Sandeep Palakodeti

244 - The Math Behind a $100M Concierge Medicine Business with Sandeep Palakodeti

Nikolas Hulewsky