FITBIT SPENT ITS first decade selling activity trackers. With its latest moves, the company is starting to look less like a gear maker selling pricey accessories to fitness buffs and more like a medical-device company, catering to hospitals, patients, and health insurers. The company’s business-to-business arm, called Health Solutions, is now addressing four health conditions—sleep disorders including sleep apnea, diabetes, cardiovascular health and mental health—for employers, health insurers, healthcare providers, and researchers.
Fitbit has deals with insurers like UnitedHealthcare, which pays its clients up to $1,500 a year for hitting step-count goals. United has done years of research to calculate its return on these payouts, says Fitbit CEO James Park. “The business models are finally catching up to the data we have been collecting.” The next stage is to add in heart rate data, he says.