New technologies are at the heart of industry transformation. Virtual and augmented reality companies provide fundamentally new ways of communication, treatment, education, and specialist training within the medical industry. However, business models for new ventures that target the medical industry have received scant attention within academic research. Using a multiple case study approach, we analyze how virtual and augmented reality firms create value for their customers in the medical industry. In all, we have studied eight companies that offer different types of solutions for their target segments. The results of the analysis are four design elements consisting of twelve positions and three design themes that define the similarities and differences between the business models for the companies. We contribute to existing research within the field by analyzing business models of the investigated companies using a design approach, classifying the virtual and augmented reality companies, and analyzing the role of new technology in the development of the medical industry.