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Press Release: Noom’s New Outcomes-Based Pricing Model is Poised to Disrupt the Healthcare Market

by | Dec 8, 2016 | Last updated Mar 23, 2023

NEW YORK, Dec. 8, 2016 /PRNewswire/ — Noom, Inc., the leader in mobile health coaching, announced today that it will charge enterprise customers only when their members achieve real health outcomes. The new pricing model disrupts the health and wellness sector, which typically charges for arbitrary enrollment, participation and engagement metrics.

The company’s mobile health platform combines the power of technology with the empathy of live human coaches to change the behavior associated with lifestyle-induced pre-chronic and chronic conditions. Noom’s proprietary behavior change programs span the acuity spectrum and include obesity, diabetes prevention, diabetes management, hypertension prevention and hypertensive management.

Other enterprise solutions typically charge per member per month (PMPM) regardless of whether anyone participates, let alone derives real health outcomes.  However, Noom will charge clients only when members of their population achieve transformational weight loss, lower their blood pressure or improve their blood sugar diagnostic category, depending on the person’s condition.

“At Noom, we’re willing to put our money where our mouth is,” said Saeju Jeong, Noom’s CEO and cofounder. “We truly care about preventing and reversing chronic conditions. That’s why we’ve strengthened our commitment to behavior change and real health outcomes by only charging customers when we successfully deliver results.”

A recent study in Nature’s Journal of Research found that even without a health coach, Noom’s mobile technology delivered successful weight loss and maintenance for 78% of users over a 9-month period. Noom has since combined its patented mobile technology with human health coaches and created condition-specific programs, making it three times more effective at driving lasting behavior change.  This led to a study published by The British Medical Journal, which to date is the world’s only peer-reviewed article proving the efficacy of a fully mobile diabetes prevention program — Noom’s.

“To date, employers and payer organizations have paid for arbitrary metrics like enrollment and engagement. At Noom, we don’t believe that enterprise customers should pay for a program unless that program delivers real health outcomes,” said Dan Poch, SVP of Sales at Noom.  “This pricing method has yielded such a positive reaction from our clients that we instantly knew we were on to something.  Of course, most companies can’t price in this way as they don’t track their results and more often than not they simply don’t work, but because Noom is so effective, it’s easy for us.  And it’s great for our clients.”

About Noom, Inc.

Noom Inc., a leader in mobile health coaching, combines the power of technology with the empathy of real human coaches to deliver successful behavior change at scale. Noom’s direct-to-consumer weight loss and exercise tracking mobile applications have reached more than 45 million users worldwide. Leveraging the success of their ground-breaking health and fitness programs, Noom developed a behavior change platform to treat chronic and pre-chronic conditions, beginning with the CDC’s Diabetes Prevention Program (DPP). On the first day the CDC began recognizing mobile and online DPP providers, Noom was there. Since then, Noom has expanded its curricula across the acuity spectrum and now features programs for pre-hypertension, hypertension and diabetes management in addition to its flagship weight loss and diabetes prevention programs. Noom has changed the lives of over 45 million users worldwide and has offices in New York City, Seoul and Tokyo.