CommercialHinge Health to Buy Out Cylinder Health in a...

Hinge Health to Buy Out Cylinder Health in a Deal Worth Over $100M

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Hinge Health has agreed to acquire digital gastrointestinal care startup Cylinder Health as the company expands its platform beyond musculoskeletal (MSK) and migraine care.

The transaction, valued at $105 million in cash, will accelerate Hinge Health’s entry into the gastrointestinal (GI) care market, one of healthcare’s biggest underserved segments, according to company executives. The acquisition is expected to close during the third quarter, with an integrated GI care program planned for launch in 2027.

Hinge Health’s Strategy 

Speaking during the company’s second-quarter earnings meeting, Co-founder and Chief Executive Officer Daniel Perez said Hinge Health is applying the same strategy that helped build its MSK and migraine businesses.

Perez explained that the company targets areas with significant unmet clinical need and then uses technology to make care delivery automatic. He noted that gastrointestinal care fits that approach because digestive disorders affect about 25% of adults in the U.S. and account for roughly $135 billion in annual healthcare spending. 

He also pointed out that access to specialist care remains limited, with nearly 70% of U.S. counties lacking a gastroenterologist, leaving many patients moving between urgent care clinics and primary care providers without a coordinated treatment strategy. According to Perez, employers and health plan clients have consistently identified GI care as a major unmet need.

More About the Companies

Founded in 2021, Cylinder Health serves around two million covered lives across approximately 100 clients. The company has partnerships with three of the five largest self-insured health plans and two of the three leading pharmacy benefit managers (PBMs). Hinge Health said Cylinder has already provided care to more than 150,000 individuals.

Following the acquisition, Hinge Health plans to combine Cylinder’s clinical capabilities and established customer base with its artificial intelligence-powered care platform to deliver gastrointestinal care through a single integrated application scheduled to launch in 2027.

The Benefits of the Deal

During the earnings call, Hinge Health President James Pursley said the acquisition is expected to contribute between $7 and $8 million in revenue during 2026, with a substantially larger contribution anticipated in 2027 as the platform is fully integrated and expanded. He added that the company is taking a long-term approach to GI care by investing in the service to improve patient outcomes, enhance the user experience and lower healthcare costs for clients.

Perez also noted that gastrointestinal disorders frequently occur alongside the conditions Hinge Health already manages, including migraine, pelvic floor disorders and musculoskeletal conditions. He explained that these conditions share gut-brain and central sensitization pathways, making GI care a logical extension of the company’s existing clinical model because many current members are also living with chronic digestive diseases.

According to Perez, gastrointestinal care is expected to make only a modest contribution during this year’s sales cycle, with a broader commercial rollout planned for 2027.

He added that Cylinder Health has done an impressive job transforming the way gastrointestinal care is delivered, and Hinge Health looks forward to incorporating those capabilities into its own platform through the partnership.

Hinge Health Plans Cylinder Health Acquisition

Hinge Health is set to acquire Cylinder Health in a transaction valued at more than $100 million, marking another significant move in the digital healthcare market. The deal could strengthen Hinge Health’s position in musculoskeletal care while expanding its broader digital health capabilities.

The proposed acquisition highlights continued consolidation across digital health as companies seek to combine technology, clinical services, and patient engagement platforms. For Hinge Health, bringing Cylinder Health into its organization could create opportunities to expand its services and reach more patients.

Hinge Health Strengthens Digital MSK Care

Hinge Health has built its business around technology-enabled musculoskeletal care, helping patients manage conditions involving the back, joints, and other parts of the musculoskeletal system.

The Cylinder Health transaction could allow Hinge Health to broaden its capabilities and potentially provide employers, health plans, and patients with a wider range of digital healthcare services.

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