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  "documentTitle": "Hims & Hers Health, Inc. (HIMS)",
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  "authorName": "Spruce Point Capital Management",
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  "sourceTypeLabel": "Short seller",
  "presentationDate": "2023-07-13 00:00:00",
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  "notes": "Uses a bottom-up calculation to derive consultation duration from financial disclosures and estimated pharmacy/physician splits.",
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      "text": "Based on our analysis of VIE charges for services rendered, average physician hourly rates, and disclosed annual consultations, we estimate that the average physician consultation in 2022 was under five minutes, even after the introduction of mental health counseling services that generally last an hour.",
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      "text": "Average Consult Length in Minutes: 4.9",
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      "text": "HIMS discloses total charges for “services rendered” from its variable interest entities (VIEs), which include both its affiliated physician and pharmacy operations. Although HIMS does not disclose the mix between the two, we know that HIMS acquired Apostrophe in July 2021 and began operations at its Ohio fulfillment facility in 2021 (which together comprise the pharmacy operations). Furthermore, based on a review of LinkedIn profiles, we estimate that HIMS has approximately 25-30 pharmacists on staff. Using these data points, we have estimated the portion of service charges attributable to the pharmacy operations, with the remainder being attributable to physicians. Based on our conversations with former physicians, we believe physician hourly pay has stayed a relatively constant $150 per hour since HIMS launched. Recognizing that the introduction of mental health counseling services in recent years will increase average consultation length, our findings support former physician commentary that core sexual health consultations last just a few minutes.",
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      "text": "Based on our analysis of VIE charges for services rendered, average physician hourly rates, and disclosed annual consultations, we estimate that the average physician consultation in 2022 was under five minutes, even after the introduction of mental health counseling services that generally last an hour.",
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      "text": "Source: HIMS SEC filings, Spruce Point Research",
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      "text": "Spruce Point Estimation of Average Physician Consultation Length",
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      "kind": "title",
      "text": "Our Estimates of Average Consultation Length Support Former Physician Claims",
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