Teladoc plans to push back its competitors by creating a full line of products

Over the past year, a multitude of companies have launched or acquired telehealth solutions. Teladoc CEO Jason Gorevic allayed competition concerns in a recent earnings call, saying the company continues to gain customers and retain them at high rates.

He attributed the company’s sustainability to the breadth of solutions it has accumulated. Last year, Teladoc launched a chain of digital health mergers by buying Livongo for $ 18.5 billion. This year, around 70% of the company’s bookings were for multi-product sales.

“We win through the full range of our products and services,” he said. “The truth is, point solutions, I would say, are really struggling at this point. And if you look at our late stage pipeline, it’s almost double what it was last year.

Teladoc reported third quarter revenue of $ 522 million, up 81% from a year ago. It also reported 3.9 million visits, up 37% from 2020.

Teladoc did not say how much of its growth came from direct-to-consumer visits or contracts with other companies, but Gorevic, the company, has seen “substantial growth on both fronts.”

In particular, the company has seen strong growth in mental health visits both through its direct-to-consumer and B2B channels, said CFO Mala Murthy. Mental health has been a big driver of telehealth, even before the pandemic.

However, the paid members of the company remained relatively stable and its net loss fell from $ 35.9 million to $ 84.3 million in the third quarter, in part due to stock awards that continue to be acquired after its merger with Livongo.

Teladoc has a high bar to cross after the pandemic took virtual tours to an all-time high last year. A significant part of its business going forward will be its virtual primary care solution, Primary360, which is now part of several telehealth plans launched by payers this year.

Teladoc recently announced partnerships with CVS Health and Centene around this primary care offering. The company had originally planned to price it around a model per member per month, similar to its other B2B contracts, but with a slightly higher price to reflect the fact that a primary care visit would generally be worth more than an emergency care visit.

But in the longer term, Teladoc is looking to enter into more value-based contracts with payers who would reimburse the company for providing better care.

“I see that we are taking risks, and I think we are going to participate in it,” said Gorevic.

Photo credit: Sorbetto, Getty Images

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