teladoc business plan

How does Teladoc work and make money: Business Model

Barriers and inefficiencies in the current U.S. healthcare system present market participants with three significant challenges: 

• Consumers lack sufficient access to high-quality, cost-effective healthcare at appropriate sites of care while bearing an increasing share of costs; 
• Employers and health plans lack a practical solution that reduces costs while enhancing healthcare access for beneficiaries and 
• Providers need more flexibility to increase productivity by delivering care on their terms. 

Market participants are increasingly unable to effectively and efficiently receive, deliver or administer healthcare. At the same time, the emergence of technology platforms solving massive structural challenges in other industries has highlighted the need for a similar solution in healthcare. 

Teladoc saw it as a significant opportunity to solve these challenges through a trusted solution that matches consumer demand and physician supply in real-time while offering health plans and employers an attractive, cost-effective healthcare alternative for their beneficiaries.

Twenty years, Teladoc Health set on a path to transform healthcare to help all people live healthier lives. But as strategy enthusiasts, we decided to evaluate the business model of Teladoc and learn how Teladoc works and makes money. We have also done a competitor analysis for Teladoc. Let’s find out.

What is Teladoc? How does Teladoc work?

Teladoc Health, Inc. is a multinational telemedicine and virtual healthcare company headquartered in the United States. Primary services include telehealth, medical opinions, A.I. and analytics, telehealth devices, and licensable platform services. 

In particular, Teladoc Health uses telephone and videoconferencing software and mobile apps to provide on-demand remote medical care. Teladoc was founded in 2002 in Dallas, Texas, by G. Byron Brooks, EE MD, and Michael Gorton. 

Teladoc calls itself the oldest telemedicine company in the United States. The initial business model of Teladoc allowed patients to consult with state-licensed doctors at any time remotely. Companies paid a monthly fee for their employees to access the service, while patients paid a flat fee for each consultation, originally about $35 to $40.

Teladoc Health was founded and works on a simple yet revolutionary idea: everyone should have access to the best healthcare anywhere in the world on their terms. Today, Teladoc provides whole-person virtual care, including primary care, mental health, chronic condition management, and more. 

Teladoc works on creating a unified and personalized consumer experience, developing technologies to connect patients and extend the reach of care providers, delivering the highest standard of clinical quality at every touchpoint, and enhancing health decisions and outcomes with intelligent data and actionable insights.

Teladoc claims it has the most extensive breadth of integrated whole-person products and services in the virtual care industry. Teladoc is capitalizing most recently on its combinations with Livongo Health, which significantly strengthened its chronic care management capabilities, and InTouch Technologies, which expanded its care delivery both inside and outside the hospital. 

Altogether, this creates a well-defined opportunity for Teladoc to treat the whole person, from their mental healthcare to their physical healthcare and acute episodic needs to their chronic conditions. 

Teladoc strives to be the “front door” to the healthcare system, with a unique ability to connect them to the care they need. Teladoc aims to achieve its vision by delivering, enabling and empowering whole integrated person virtual care services and experiences that span every stage of the healthcare journey. 

Teladoc offers a portfolio of services and solutions covering hundreds of medical subspecialties, from non-urgent, episodic needs like flu and upper respiratory infections to chronic, complicated medical conditions, including diabetes, hypertension, chronic kidney disease, cancer, congestive heart failure, and mental health conditions, – all bolstered by technology, machine learning, and human expertise to provide an adequate care experience that people value and trust. 

By combining the latest in data science and analytics with user experience through a set of highly flexible integrated technology platforms, Teladoc completed approximately 15.4 million telehealth visits in 2021.

How does Teladoc make money? What is the business model of Teladoc?

Value proposition.

Value Proposition for Members

• On-Demand Care : Teladoc offers its Members 24x7x365 access to high-quality, on-demand care without the burdens associated with travel and wait times.
• Access to High-Quality Physician Network : Teladoc has secured its Providers’ services through a long-term services agreement with Teladoc Physicians, P.A., or Teladoc PA, a professional association, that provides access to telehealth services to Teladoc.
• Cost-Efficient Care : Teladoc offers its Members substantial savings, which is meaningful as employers and health plans shift costs to cost-conscious consumers.

Value Proposition for Clients

• Proven Return on Investment : Teladoc offers its Clients substantial savings opportunities and ROI. 
• High-Quality Care : Teladoc’s solution is backed by Evidence-Based clinical guidelines (designed explicitly for telehealth) that assist Provider and Member decisions and criteria regarding diagnosis, management, and treatment.
• Consumer Engagement : Teladoc’s predictive models allow it to identify Members most likely to use its solution and increase Members’ adoption, which in turn drives ROI for Clients. 

  Value Proposition for Providers

• Meaningful Income : Teladoc empowers physicians and other healthcare professionals with the convenience of immediate access to new patients without the administrative burden.
• Enhanced Work Flexibility and Productivity : Teladoc offers physicians and other healthcare professionals control and scheduling flexibility to determine when and where they practice medicine. Teladoc’s Providers can work while traveling, on weekends, or on holidays.
• Significantly Reduced Administration: With no claims forms or paperwork to complete and no physical office to manage, the supportive business model of Teladoc allows physicians to focus on delivering high-quality patient care.

Customers and Clients

Teladoc’s customers consist of employers (including approximately 50% of the Fortune 500), health plans, hospitals and health systems, insurance and financial services companies (collectively “Clients”), as well as individual members. 

Teladoc’s Clients purchase its solutions to expand access to convenient, affordable, and high-quality healthcare to their constituents and to reduce their healthcare spending.  On a direct B2B basis, Teladoc sells to its Clients on behalf of their beneficiaries, including employees and health plan members.

In addition to B2B, Teladoc also addresses the healthcare needs of individuals on a D2C basis across its businesses, most prominently through its BetterHelp brand and partnerships with other trusted brands. 

Teladoc has 12000+ clients across 175 countries. While health plans are Clients, they also serve as distribution channels to self-insured employers that contract with Teladoc through its relationships with the health plan. 

As of 2021, over 53.6 million unique paid members and 24.2 million visit fee-only individuals had access to Teladoc’s healthcare and expertise through various integrated channels.

Sales & Marketing strategy of Teladoc

Teladoc sells its services principally through its direct sales team that comprises enterprise-focused sales professionals. 

Teladoc maintains relationships with key industry participants, benefits consultants, brokers, group purchasing organizations, health plans, and hospital partners. Teladoc generates Client leads, accelerates sales opportunities, and builds brand awareness through its marketing strategy.

The marketing strategy of Teladoc targets human resource, benefits, and finance executives in addition to technology and health professionals, senior business leaders, and healthcare channel partners. 

The marketing strategy of Teladoc leverages its website to provide information about its company and its solutions, as well as learning opportunities for potential members; integrated marketing campaigns; and participation in industry events, trade shows, and conferences. 

How does Teladoc make money: revenue model

Teladoc made $2.03 billion in 2021 , an 86% increase from 2020. Teladoc primarily makes money from access fees on a per-member-per-month (“PMPM”) basis that provides Members access to Teladoc’s professional Provider network of doctors, therapists, and specialists.

Its Clients pay access fees on behalf of their employees, dependents, policyholders, cardholders, beneficiaries, and clinicians, or as is the case with certain of its subscribers, its members themselves pay fees. Access fees contributed 85% to Teladoc’s revenue in 2021.

Teladoc also makes money from visit fees in combination with access fees. Teladoc charges a visit fee for a general medical visit, expert medical service, and other specialty visits for contracts where the service is not part of access fees. Visit fees contributed 13% to Teladoc’s revenue in 2021.

Teladoc also makes money from the health system and provider Clients related to its licensed technology platform, primarily in the form of recurring access fee revenue and from the sale and lease of devices such as robots, carts, and tablets. 

How does GoodRx work & make money | Business Model

Competitor Analysis of Teladoc

Teladoc’s competitors are those companies that

• develop and market virtual care technology (devices, software, and systems) or 
• provide virtual care services, such as the delivery of on-demand access to healthcare and chronic condition management. 

The biggest competitor for Teladoc includes MDLive, Inc. (now owned by Cigna), American Well Corporation, Included Health, and Accolade, Inc., among other minor industry participants. 

• In the chronic digital condition management ten market, competitors include Omada Health, Inc., Virta Health Corp., and other participants. 
• In the market for technology solutions for hospitals and health systems, competitors include American Well Corporation, MDLive, Inc., and smaller technology providers. 
• In the D2C mental health market, competitors include Talkspace, Cerebral, and other participants. 
• Teladoc also faces competition from large, well-financed health plans that, in some cases, have developed their virtual care, expert medical service, or chronic condition management tools, as well as large technology and retail companies, such as Amazon and Walmart, which have developed or acquired their virtual care solutions. 

But Teladoc believes its business model has substantial competitive advantages to address the most pressing challenges and trends in healthcare delivery worldwide. As the first comprehensive virtual healthcare company providing whole-person care at scale, Teladoc has pioneered solutions in the telehealth industry.

A passionate writer and a business enthusiast having 6 years of industry experience in a variety of industries and functions. I just love telling stories and share my learning. Connect with me on LinkedIn. Let's chat...

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The Teladoc Business Model – How Does Teladoc Work?

Teladoc is a telemedicine and virtual healthcare platform that provides online medical care. Customers can talk to licensed physicians about non-emergency, mental health, and dermatological conditions and receive remote prescriptions for medication.

The business model of Teladoc is based on its clients signing up for yearly or monthly subscriptions. Individuals can also pay a flat sum for an appointment.

Teladoc’s consulting physicians are paid per consult.

Founded in 2002, the company has grown into one of the largest virtual healthcare names in the United States. Its estimated 2016 market share was 75%.

In 2020 it was part of a merger with Livongo, an Applied Health Signals company. Its expected 2020 revenue was estimated at approximately $1.3 billion.

What Is Teladoc?

Teladoc is the largest virtual healthcare company in the United States. It offers virtual medical consultations with licensed state physicians as well as services based on AI, analytics, virtual care programs, and telehealth devices.

Users have open access to board licensed doctors via the Teladoc website or mobile app. The platform allows individuals to avoid surgery or clinic wait times while saving on logistical costs. Clients can offer the service as an important part of their employment package.

Teladoc has over 50 million members and 12,000 clients, serving over 170 countries. Its network has over 55,000 medical professionals (including 3,100 licensed doctors) working across 450 subspecialties.

Since the beginning, the business has grown to collaborate with international hospitals, over 70 global insurance companies, healthcare providers, and health delivery organizations.

In 2019, the business completed 4 million virtual care visits. During the COVID-19 pandemic, that number skyrocketed. As a result, Teladoc saw a 92% jump in visits during the first quarter of 2020.

How Does Teladoc Work?

Teladoc works by connecting you with certified board physicians via its website and mobile app. Users set up an account, provide basic details and complete a medical history survey. The survey provides the information necessary for doctors to accurately diagnose you and prescribe effective medication.

Through an account, users can request a “visit”. You can do this on your own behalf or for others (if they share access to an account). You’ll have to select which state (United States users) you’ll be in during the consultation period.

Teladoc’s platform will connect you with a doctor in that area. You can arrange a consultation via video or phone call. You’ll also select the time you want the appointment and can upload photos beforehand (in the case of visual symptoms). Finally, you’ll be provided with payment options (if you’re not a paid subscriber).

Consultations are focused on non-emergency cases. If the consulting physician feels your condition is serious, they will refer you to your local ER hospital. Any prescriptions will be sent to a local pharmacy of your choice.

The cost of consults varies depending on the users’ benefit plan (more on how Teladoc makes money later).

How Does Teladoc Pay Physicians?

Teladoc physicians take a fee directly from the Teladoc service. According to Indeed.com, the average hourly rate for a physician signed up to Teladoc is around $100.

Physicians take a percentage of the consultation fee users of Teladoc pay.

Earning capacity is set by demand and physicians’ availability. There are many reports of doctors making a full-time income working exclusively with Teladoc.

Teladoc Company History

Teladoc was founded in 2002 out of North Dallas, Texas by Michael Gorton and G.Byron Brooks MD. The idea for the business came out of a trip both founders took to Mount Kilimanjaro in Kenya.

Gorton is a serial entrepreneur raised in Texas. His father, enlisted in the United States military, encouraged his creativity and business acumen from a young age.

Gorton met Brooks in Virginia, after having relocated there due to his father’s work at the Pentagon.

Teladoc faced several problems in its early days. Attracting physicians to the platform was a major problem, with retired or disabled physicians making up the core of their initial network.

Another stumbling block was the general public’s early view of telemedicine. Particularly over the question of quality of care and whether it could really be delivered remotely.

“That was a question that also translated to the board’s medical examiners who said you can’t do this, it’s illegal and unethical”, said Gorton in a recent interview .

Teladoc eventually worked through the problem by reminding regulators of the subject of “cross-coverage”, whereby a physician ‘covers’ for another physician when they’re not available. Something that’s been happening since the dawn of medical practice, regulators were soon convinced telemedicine could be a neat extension to traditional home doctor calls.

Despite overcoming these initial roadblocks, however, Teladoc’s journey has been anything but smooth. It took five years after the initial launch for the platform to reach 1 million members.

Something that helped its adoption (albeit relatively slowly), was the fixed fees set for patient consultations. Originally set at $35 to $40, the price point helped Teladoc launch nationally (with the announcement coming at the Consumer Directed Health Care Conference in 2005), as well as secure important contracts with the likes of AT&T.

“At the end of my time at Teladoc we had 2 million members. We were delivering doctors to patients for about 12 minutes at about $35 dollars. So essentially we were solving two problems; access and price”, Gorton adds.

But where problems were solved patient-side, the company still struggled to get physicians on board. Concerned by the threats of increased liability, increased working hours, and a medium with which they were unfamiliar, it was a challenge that took some time to work out.

“Our doctors actually made more money working for us than they did doing primary care. If you look at the typical primary care doctor’s life, they’re working 60-80 hours a week. And at the time they were making $138K a year. With our model they were working 8 hours a day, 5 days a week and would make about $250K. So we shortened their day and made them more income. And we did that through efficiency; they didn’t have all the bills to pay, they could do it from their house.”

Still, the concept of telemedicine was completely new and this message, for physicians at least, took a long time to get through. Early network adopters had an average of 14 years experience in medicine (something that’s grown to 20 years today) and there was also the problem of competition; especially from Boston-based American Well (who later filed a lawsuit against Teladoc which the latter eventually won).

In 2009 the company got more aggressive. Gorton left and Jason Gorevic (former CEO at New York’s Empire BlueCross BlueShield) stepped into the hot seat as Teladoc’s chief executive. Under his guidance, the company was able to score several million dollar rounds of private funding.

In an interview with D Magazine, Gorevic reiterated his desire to get involved. “I thought the time was right for telehealth and that it could make a big difference…I was looking at all of the big trends around healthcare reform, the shortage of primary care physicians, the cost trends in healthcare. I thought that telehealth was the right solution to a lot of these problems”, he was quoted as saying.

In 2011 Gorevic acted on this enthusiasm and negotiated Teladoc’s take up by healthcare insurance company Aetna. Rolling out the platforms’ service to their fully insured members across the United States, Aetna’s business helped fund the company’s first large acquisition, the purchase of Consult A Doctor for $16.6 million in 2013.

That business’s assets, coupled with Teladoc’s own growing member base, took its consult numbers to 120,000 at the end of that year. By the time 2014’s Affordable Care Act rolled out, and further acquisitions took place with online mental health service BetterHelp and analytics company Stat Health Services (StatDoc), things were going steady.

In 2015 the company finally went public. Becoming the only telemedicine company at the time to do so, the initial response to the IPO was positive. Things got shaky soon after when health insurer Highmark, a client making up 1.5% of Teladoc’s revenue, failed to extend their contract.

Despite the initial knock, the company made its largest moves toward resembling the multi-service offering it is today during the course of 2016. Its aggressive takeovers of companies involved in sexual health, dermatology, and behavioral health, meant it topped out with 15 million members at the close of that year. Then in 2017, it made its largest acquisition ever, buying medical consultation firm Best Doctors for $440 million.

Since then, growth has been on an upward trend. Shortly before the events surrounding COVID-19, Teladoc had already changed its name to Teladoc Health, extending its market capitalization to $4.1 billion. Even despite a scandal in late 2018, when the company’s CFO and COO Mark Hirschorn resigned after insider trading allegations, Teladoc continued growing. Expanding outside the United States with its acquisition of Advance Medical (an employer of doctors in Asia, Europe, and Latin America), its stock price bounced back.

The changed attitudes of the global pandemic and August 2020’s merger with Livongo perhaps leave Teladoc in its healthiest position to date. Chase Feiger, M.D. , in his column at Forbes, called it the most “unprecedented event in digital health history”, arguing that it will drive down the overall cost of care and increase the number of patients able to receive treatment.

Teladoc closed out 2020 with projected revenue of $1.1 billion, doubling its 2019 revenue of $553 million. It also reported having delivered 10.6 million virtual visits in that same time period, growing its paid membership base to just over 50 million users.

How Does Teladoc Make Money?

Teladoc makes money by offering a subscription-based model. Clients (employers) pay annual or monthly subscriptions for access to Teladoc’s varying services and offer these to employees. Online physician consultations are the primary service offered.

Teladoc’s choice of this model is unconventional compared to competitors. Doctor-on-Demand, a rival telemedicine company offering a similar service, offers a flat fee per “visit” model. The advantage of this model is fairly obvious. If nobody uses the service, the company has no costs, while if everyone uses the service the company still saves (the flat fee is less than a face-to-face consultation).

The way Teladoc makes money is mostly dependent on signing up enterprise clients. At this point, employers are seeing utilization (especially thanks to the pandemic and global health concerns) and are happy to pay. But the model does leave them somewhat fragile if the future mood suddenly changes.

Teladoc’s one-time flat fee consultation payments, starting at $49 per feature, coupled with their international focus (205,000 out of 861,000 of 2019’s global visits), is something that helps minimize that problem.

Teladoc Funding, Revenue & Valuation

According to Crunchbase, Teladoc has raised $172.9 million across six rounds of venture capital funding.

Lead investors include Icon Ventures, Trident Capital, HLM Venture Partners and Silicon Valley Bank.

After Teladoc went public in 2015 it had an enterprise value of $620 million and a market capitalization of $758 million. Today’s data puts their valuation at $28.42 billion.

In the fiscal year of 2020, Teladoc posted annual revenues of $1.09 billion.

In the same year they incurred a net loss of $485.1 million, accumulating a total deficit of $992.7 million.

These losses are a result of investments acquiring new clients and expanding Teladoc’s networking and provider bases.

Born and raised in the UK, Will went into medicine late (31) after a career in journalism. He’s into football (soccer), learned Spanish after 5 years in Spain, and has had his work published all over the web. Read more .

Software Engineering Insights

How Teladoc works? Business model and revenue streams

Sep 22, 2020 2:27:35 PM

Planning to pay a visit to your doctor but can’t for some reason or the other? You’re not alone. Why not schedule an online doctor appointment instead? Try Teladoc to discuss a non-emergency medical condition with a physician anytime, anywhere from the comfort of your home or office.

The US-based, global leader in virtual care, Teladoc Health is where the doc is just a call away. Founded in 2002, Teladoc Health is the largest virtual care company in the United States serving over 170 countries with a portfolio of services including AI and analytics, telehealth, medical consultations, telehealth devices, and virtual care programs.

Teladoc Company

Founder: Jason Gorevic

Headquarter: New York, USA

Industry: Medical Care

Employees: 4400

Area Served: 130+ countries

Revenue: $553 million

App installs: 2,000,000+

Language: Available in 30 languages

Stock Symbol: TDOC

Share Price: $19

The platform enjoys a pretty high rating from patients and physicians alike and has more than 2 million mobile app downloads, over 50 million members and 12,000 clients.

Teladoc has changed the way people access healthcare with its varied services from in-clinic to in-home care. Whether you want mild medical care or need help with acute or chronic health issues, Teladoc Health is your best bet.

You can use Teladoc for services ranging from dermatology, paediatrics, and even mental health. It also facilitates and arranges lab tests and sends prescriptions to the nearest pharmacy.

The merger of Livongo and Teladoc - the two health tech innovators makes Teladoc the biggest name in virtual care.  The coming together of two brands widens the ambit of the telemedicine company. Livongo – the applied health signals company along with Teladoc aims to provide the best solutions in the marketplace and add substantial value to the consumer experience.

The consolidated clinical expertise of both the innovators gives access to a comprehensive healthcare system with a focus on higher quality and lower costs. The integrated services promise holistic health support with an emphasis on the availability of specialists for the timely delivery of care.

As per the data revealed from Crunchbase, Teladoc has raised $172.9 million from various investors such as Icon Ventures, Trident Capital, HLM Venture, and Silicon Valley Bank.

When Teledoc went public in 2015, it had an enterprise value of $ 620 million with a market value of $758 million. In the year 2020, Teladoc posted annual revenue of $1.09 billion in their board meeting.

So how does Teladoc work?

Teladoc Health can be accessed via call or videoconferencing for on-demand remote medical aid. The basic idea being that patients can remotely consult over 3,000 state-licensed doctors at a time suitable to them. Organizations associated with the virtual healthcare provider pay a subscription fee for their employees to avail the services while individuals pay a flat sum for every appointment.

Teladoc Health services can be essentially categorized into six broad divisions: telehealth, guidance and support, mental health services, integrated virtual care, platform, and program services, and expert medical services. Since it is a tech company, it constantly works on AI, analytics, and licensable platform services.

The licensed physicians on the panel of the virtual healthcare platform treat patients within a wait time of not more than 8 minutes. Patients can reach out to virtual doctors for non-emergencies such as infections, flu, sinus problems, allergies to name a few. The company boasts a network of 55,000 medical professionals dispensing their expertise in 450 subspecialties in over 40 languages.

The healthcare practitioners associated with Teladoc Health strictly adhere to the guidelines formulated by the company which includes no in-person consultations with their patients.

Who all does Teladoc serve?

The virtual care giant serves some of the world’s leading organizations across industries and sectors. It collaborates with hospitals, insurance companies, healthcare providers, and health delivery. In 2019, Teladoc recorded over 4 million virtual care visits. This trend is expected to scale up as more and more people across the globe seem to get cozy about the idea of online consultation and doctor visits.

Employers around the world

From Fortune 500 companies to Small Businesses, the public sector, or labor unions – Teladoc caters to all. Employers offer Teladoc’s virtual healthcare services to their employees. Organizations the world over know the significance of providing smart, high-quality digital healthcare solutions and benefits to their employees and Teladoc delivers just that, making hassle-free, remote, accessible healthcare for all a reality.

Insurance companies

Teladoc has partnered with over 70 global insurers in order to provide exceptional virtual care services. Members while building relationships with Teladoc Health know they are risk-free and protected. The financial and insurance companies offer that security to their policyholders while Teladoc adds value to these insurers.

Health plans

Teladoc Health collaborates with over 50 health plans in the United States to intensify the adoption of virtual care by more people than before. Seen as a way to foster virtual care further, Health plans make quality care accessible.

Hospitals and health providers

Teladoc works closely with health systems and hospitals the world over to provide the best virtual care services in the industry. Both patients and practitioners benefit from their intuitive health devices delivering an unmatched user experience.

Individual patients

Teladoc is daily accessed by millions of individuals looking for a medical opinion remotely. The anytime, anywhere advantage of Teladoc Health makes it popular among patients seeking quick solutions to their health needs. 

Also Read: 5 Must-Haves in a Telemedicine Software to Improve the Healthcare System during COVID-19

92% increase in visits due to COVID-19 outbreak

Teladoc Health saw a staggering 92% jump in visits in Q1 2020 owing to the pandemic with total revenue of $180 million. With lockdowns and a growing preference for virtual care solutions, the figures do not come as a surprise. The trend majorly shows traffic from domestic visits.

The virtual care giant also saw a 41% year-over-year increase in revenue. The paid memberships in the domestic market jumped to $43 million with a year-over-year increase of 60.8%. The total number of member visits in the US spiked at 88.7% with a $19 million visit-only fee.

The services utilized by paid members rose to 13.36% from 11% year-over-year largely due to an increased volume of stay-at-home-based inquiries.

A higher revenue and customer visits compared to the pre-pandemic era are expected for sure but the company also foresees an eventual decline in stay-at-home orders along with lower copays once the patients go back to offline healthcare providers. With that, the total Q2 revenue is expected to plummet to $225 million with total visits around 2.4 million.

Also Read: Healthcare Compliance for Telemedicine Solutions: What You Should Know?

Takeaway 

Telemedicine is a barometer of changing socio-economic issues in the health systems. It’s a tool for measuring the current challenges and new trends and patterns rising in the healthcare industry. Its significance in the deployment of health resources, better demand management, lesser number of hospital trips for an efficient and sustainable health system only makes it a crucial service. 

If you also plan on creating an app similar to Teladoc then go for a free consultation with our experts today. Get details on the development cost and more for your project.

Topics: Healthcare

Written by Devi Singh

Content crafter at Daffodil. Eager to bring the latest ideas and developments in technology.

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Understanding The Teladoc App

Teladoc's business model, exploring teladoc's revenue generation, teladoc and medicare, business and revenue model of teladoc explained.

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Telemedicine? That's just a fad, right? Well, think again. 

In a world where our lives revolve around smartphones and apps, telemedicine has become a game changer, providing on-demand healthcare to millions.

The question is, can you believe that Medicare might actually give you access to top-notch online healthcare at no extra cost? It's time to talk Teladoc – the trailblazer blending the convenience of an app with the lifeline of a virtual doctor's visit. No ifs, buts, or maybes.

In this guide, we'll dish the dirt on the Teladoc business model, what makes it so irresistible, and most importantly, how Teladoc and Medicare work together. Intrigued yet? You should be. Healthcare as we know it is changing, and it's time to keep up or be left behind.

We'll dig into how Teladoc makes money, the costs and services on offer, and how this all plays out for Medicare members. Stay with us, and you'll be a telehealth whiz kid in no time.

Ready to dive in? Let's go. Say goodbye to the waiting room, and hello to the Teladoc revolution.

The  Teladoc app is a game-changer in healthcare. It's simple and user-friendly, meaning anyone can use it without any hassle. You can access Teladoc services on the go, making it super convenient. In this section, let's dive deep into the Teladoc app and how it benefits you.

First things first: let's talk about  Teladoc . It's an online platform where you can chat with doctors and other healthcare professionals 24/7. With Teladoc, say goodbye to waiting for appointments and hello to speedy medical help.

Now, let's look at the  Teladoc app . Just download it on your smartphone or tablet, and you'll have medical advice at your fingertips. The app is super easy to navigate, which is great. Just log in, find a doctor, and start chatting. Ideal, right?

Worried about  Teladoc cost ? Don't stress! Teladoc keeps your pocket in mind with their pricing. While the prices vary depending on your insurance (keep an eye out for  Teladoc Medicare options), the app offers different plans to suit your needs. The best part? Straightforward pricing means no surprises!

Alright, let's focus on  teledocs for a moment. On the Teladoc app , you'll find hundreds of healthcare professionals, from primary care doctors to specialists. These teledocs are certified, experienced, and ready to help. So, you can trust you're in good hands.

With  Teladoc services , you also get prescriptions. That's right; if you need medication, the teledocs can send an electronic prescription to your local pharmacy. How great is that? No need to trudge down to your doctor's office for a script!

Finally, let's talk about  Teladoc Medicare . If you're on Medicare, good news: the Teladoc app may have options for you. Make sure to check your plan, chat with a Teladoc expert, and figure out the best path for your healthcare journey.

So, there you have it: the Teladoc app demystified. It's an easy, clever way to get the medical help you need, anytime, anywhere. No more waiting or rushing to your doctor. Just download the app, get chatting, and focus on feeling better.

Let's talk about  Teladoc's business model. It's pretty cool how it shakes things up in the healthcare industry, providing access to medical help to people in a convenient, cost-effective manner. Here's how it works.

Remember the  Teladoc app we discussed earlier? That's where everything begins. Anyone can download this app, sign up, and get easy access to doctors - right from their device. No more driving to clinics or waiting around in lobbies. Simple and hassle-free.

Speaking of simple, let's discuss  Teladoc cost and price . Teladoc prices aren't scary. In fact, they're transparent and straightforward. It's part of what makes Teladoc so popular. No hidden costs, no secrets - just clear-cut pricing so users know what to expect.

Now, let's move on to the  Teledocs . These are the real heroes here - they're the doctors, psychiatrists, therapists and other clinicians providing the medical services. They're available around the clock, so you can get help any time you need it. You've just got to love the convenience.

The  Teladoc services range from addressing simple health problems to mental health counseling and even specialized services for chronic conditions. That's right, Teladoc has got all bases covered. You get easy access to a wide range of services, all at your fingertips.

Finally, we'll chat about  Teladoc Medicare . You see, Medicare subscribers can also use Teladoc. Depending on your Medicare plan, you could have access to teledocs and all the handiness that comes with it. So, it's always a good idea to check if Teladoc is included in your Medicare plan.

So there you go. The  Teladoc business model was decoded. It's straightforward: use the app, pay for the service, get medical help, at any time. That's what makes Teladoc not only a clever choice but also a smart advancement in today's healthcare landscape.

Suggested Reading: Top 5 Alternatives of Teladoc Health 2023

Let's dig into how  Teladoc brings in the bucks, focusing purely on their revenue generation.

At the heart of it,  Teladoc makes money when people use their  Teladoc app to reach out to doctors. Each time someone consults with a doctor using the app, Teladoc gets a fee. It's a pay-per-consult model. Think of it like a taxi meter; the more you ride, the more you pay.

Now, the big question: "What's the  Teladoc cost ?" For members, they usually pay a membership fee, which gives them access to the service. On top of that, they may pay a per-use fee. The  Teladoc price you pay depends on your membership plan. And just like any smart business, the more services you use, the more you'll pay.

Moving on, those  Teledocs don't work for free, right? They get a portion of what you pay for your consultation. But Teladoc still profits after they pay the doctors. They've got lots of users, and all those fees add up to a tidy sum for the company.

Here's where it gets even better;  Teladoc services cover a whole range. From everyday health worries to mental health support and managing long-term conditions. More services mean more chances for members to use the app, and that means more revenue for Teladoc.

Let's not forget about  Teladoc Medicare . This is key because it opens doors to a whole pool of Medicare-enrolled individuals. If your Medicare plan covers Teladoc services , you get convenience and Teladoc gets a new customer. It's a win-win.

So, wrap it all up, and Teladoc's earning dough through membership fees, per-use fees, a vast array of services, and by tapping into the Medicare market. It's a clever setup, really.  Teladoc is like a bridge between patients and doctors, and they charge a toll for using that bridge.

That's  Teladoc's revenue in a nutshell. Straight up, without the garnish. No fancy language, just plain talk about how they make their money. And with the simplicity of the  Teladoc app , and the straightforward  Teladoc cost , it's easy to see why people keep coming back, and why Teladoc keeps growing.

Suggested Reading: Are Apps like Teladoc the Future of Healthcare?

Alright, let's break down  Teladoc and Medicare . This is for folks who have Medicare and want to use  Teladoc services . How does it work? Let's keep it clear and simple.

First off,  Teladoc hooks up with Medicare in some cases. That means if you’ve got Medicare, you might be able to use  Teladoc's services without paying extra. This is a big deal because it connects a lot of people to doctors, fast.

Now, the  Teladoc app isn't always free with Medicare. Sometimes, the  Teladoc cost or  price could be covered, depending on the details of your Medicare plan. Each plan has its own rules about what telehealth services it pays for. So, you need to check your plan or talk to someone who knows all about it.

Then there are the  Teledocs . These are the doctors you talk to through the Teladoc app . Even with  Teladoc Medicare , you'll get the same pros as everyone else. No second-best stuff here. The app connects you with these docs, and if Medicare covers it, you're all set.

Last up – the  Teladoc price and  cost for Medicare folk. How much does it all add up to? If Medicare says yes to covering Teladoc for you, then the price could be much lower, or even zero, on top of what you already pay for Medicare.

Long story short:  Teladoc and Medicare can be buddies. For people with Medicare,  Teladoc's services might just be a smart way to get healthcare without the extra stress on your wallet. But always check your plan because that's where the answers are. If your plan says go for it, then you're good to start video-chatting with a doctor on the  Teladoc app whenever you need to. Easy, huh?

So, there you have it.  Teladoc is changing the game with its super-accessible app, and Medicare patients might even reap the rewards. If you're all about quick and easy doctor chats, this guide was worth a read, right?

Just remember to always take a look at your personal Medicare plan to know if you can score some  Teladoc services for free or at a lower cost. You never know until you check.

In conclusion, with Teladoc's straightforward business model and pricing, online healthcare can be a breeze. Keep this knowledge in your pocket, and you'll always know what's up with Teladoc and Medicare.

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Teladoc Health Expands Collaboration in AI with Microsoft to Address Healthcare Workforce Crisis

PURCHASE, NY, July 18, 2023 (GLOBE NEWSWIRE) -- Teladoc Health (NYSE: TDOC), the global leader in whole-person virtual care, today announced it is furthering its collaboration with Microsoft by working together to integrate Microsoft Azure OpenAI Service, Azure Cognitive Services, and the Nuance Dragon Ambient eXperience™ (DAX™) into the Teladoc Health Solo™ platform. The integrated solutions will automate the creation of clinical documentation during virtual exams to help ease the burden on the healthcare workforce while improving the quality of shared medical information and the care it supports. The Teladoc Health Medical Group also plans to use Nuance DAX Express for care visits provided directly by Teladoc Health.

“Administrative burden and staff shortages are major reasons why clinicians are leaving the profession,” said Dr. Vidya Raman-Tangella, chief medical officer at Teladoc Health. “We are focused on using AI to reassert and build the doctor-patient relationship at a time when technology frequently does the opposite. We are proud to partner with Microsoft and Nuance to break new ground.”

By 2025, the U.S. Department of Health and Human Services predicts that there will be a nationwide shortage of 90,000 physicians worsened by professional burnout related to the demands of electronic paperwork. According to the American Medical Association, physicians spend two hours on administrative tasks for each hour of care provided. A longtime partner to hospitals and health systems, Teladoc Health is committed to helping organizations alleviate workforce burden and improve patient care, particularly with increased access and hybrid workflows like virtual nursing which enables experienced remote nursing staff to perform nursing responsibilities that do not require physical touch.  This frees up bedside nurses to focus on hands-on patient care and improving staff satisfaction.

“We are pleased to continue our collaboration with Teladoc Health, leveraging innovative technologies to help make it easier for clinicians to deliver care virtually and enhance the patient experience,” said Tom McGuinness, Corporate Vice President, Global Health & Life Sciences, Microsoft. “Teladoc Health’s integration of Azure OpenAI Service and Nuance DAX gives clinicians the tools they need to deliver quality, coordinated care, easing administrative burdens and allowing them to spend more focused time with their patients.”

When integrated into the Teladoc Health Solo platform, Nuance DAX , an ambient clinical documentation solution, will automatically document patient encounters accurately and efficiently at the point of care for final clinician review and signoff. As a result, clinicians can interact with patients more naturally and conversationally without the need to look away to type notes during a telehealth visit.

The Teladoc Health Medical Group will also use Nuance DAX Express , a workflow-integrated, AI powered clinical documentation application that is the first to combine Nuance’s proven conversational and ambient AI with the newest and most capable AI model, GPT4, in the Azure OpenAI Service. The use of Nuance DAX Express will provide quick and accurate reporting of encounters to other virtual and community-based clinicians to better coordinate care.

“Adding Nuance DAX and DAX Express into the Teladoc Health ecosystem represents the type of collaborative innovation needed to serve the rapidly changing needs of clinician's and patients across the care continuum,” said Diana Nole, Executive Vice President and General Manager of Healthcare at Nuance, a Microsoft company. “It addresses the pressing challenge of reducing clinicians’ administrative workloads in some of the most demanding and dynamic care environments in healthcare. Moreover, it combines the efficiency and advanced power of conversational, ambient and generative AI to give physicians the tools and information they need to provide timely, high-quality, reassuring and personalized care in any location, especially in urgent and virtual care circumstances when patients need it the most.”

Teladoc Health first collaborated with Microsoft in 2021 to streamline the technology and administrative processes associated with providing virtual care, integrating the company’s Solo platform within Microsoft Teams and as a strategic partner expanding virtual health capabilities for Microsoft Cloud for Healthcare.

About Teladoc Health

Teladoc Health empowers all people everywhere to live their healthiest lives by transforming the healthcare experience. As the world leader in whole-person virtual care, Teladoc Health uses proprietary health signals and personalized interactions to drive better health outcomes across the full continuum of care, at every stage in a person’s health journey. Teladoc Health leverages more than two decades of expertise and data-driven insights to meet the growing virtual care needs of consumers and healthcare professionals. For more information, please visit  www.teladochealth.com  or follow @TeladocHealth on Twitter.

Source: Teladoc Health, Inc. – General

Contact   Carolyn Edwards   [email protected]    +1 321-795-1952

What's next for Teladoc after CEO's departure?

Jason Gorevic’s departure from Teladoc marks the end of an eventful chapter for the Purchase, New York-based virtual care company. 

On Friday, Teladoc announced Gorevic's immediate departure as CEO after nearly 15 years at the company. Teladoc said in a news release that Chief Financial Officer Mala Murthy would serve as the company's acting CEO while it searches for a permanent replacement. 

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Gorevic  took the helm of Teladoc in 2009 . During his tenure, the company grew from $4 million in revenue to more than $2 billion amid rising consumer interest in virtual care and  more favorable telehealth payment rules  put in place during the COVID-19 pandemic. But in recent years, Teladoc has faced challenges after acquiring digital health company Livongo in October 2020 for $18.5 billion.  

Teladoc declined to answer specific questions, but instead referenced a letter and the news release sent after Gorevic's departure. In an emailed statement, Gorevic said he was proud of the company’s accomplishments in the past 15 years and thanked Teladoc’s employees, clients, investors and partners.

Here's a look back at Teladoc's last few challenging years and where the company might be headed. 

What did Teladoc look like in 2009? 

Teladoc was among the first and remains one of the largest players in telehealth. When Gorevic began his role as CEO in 2009, the company was named TelaDoc Medical Services and focused primarily on audio-only telephone visits. By 2012, it boasted an average response time of 22 minutes and announced the ability to offer continuous telephone and web-based care for clinicians’ practices. At the time, there was little traction in telehealth adoption due to lack of private and commercial insurer reimbursement. 

Under Gorevic's leadership, the company went public in July 2015, becoming  one of the first telehealth startups to do so . The company priced 8.25 million shares of common stock at $19 per share. The year it went public, Teladoc generated $77 million in revenue. 

Teladoc also expanded through acquisition during Gorevic's tenure.  The company acquired Advance Medical for $352 million in June 2018 and InTouch Health for $600 million in January 2020 . Its June 2015 acquisition of BetterHelp, a consumer mental health therapy provider, for $4 million may have been its biggest win. BetterHelp generated $1.1 billion in revenue for Teladoc last year.

What boost did Teladoc get from COVID-19?

Teladoc saw increases in revenue and user adoption after going public but received its biggest boost at the onset of the COVID-19 pandemic as a growing percentage of care switched from in-person to virtual. In 2020, Teladoc doubled its revenue and tripled the number of patient visits  from the prior year. The company’s stock reached an opening bell high of $293.96 per share in February 2021.

How did the Livongo acquisition affect the company?

At the height of pandemic-related interest in telehealth , Teladoc announced its biggest acquisition yet when it bought Livongo, a deal that would have a lasting impact on its balance sheets. When it was announced, the company called the deal "a transformational opportunity" to improve care delivery and access.

But it didn't fully materialize. The warning signs appeared only a year after the merger closed when insurer Cigna dropped Livongo as its preferred digital diabetes tool  in December 2021. In 2022, Teladoc posted a net loss of $13.7 billion , or $84.60 per share, thanks in large part to $13.4 billion in non-cash goodwill impairment charges related to the Livongo acquisition. 

Daniel Grosslight, a senior research analyst for healthcare technology at Citi, said in an interview before Gorevic left the company that the Livongo the deal pushed Teladoc into offering higher-acuity care. But the price of acquisition was a point of contention, he said. 

“There's really been no question around the strategic vision of connecting virtual health to chronic care management,” Grosslight said. “The question has always been around the price that Teladoc paid for Livongo and competition saturation in the market.”

Analysts said   the timing of Teladoc’s Livongo acquisition may have inflated the price.

“Obviously, in hindsight, they vastly overpaid,” said Alex Lennox-Miller, lead analyst for healthcare information technology at research firm CB Insights. “If they [Teladoc] had bought Livongo for a more reasonable amount and we're in the situation that they're in now, I think we would be having a very different conversation.”

What other challenges has Teladoc faced?

The Livongo acquisition hasn't been the only problem plaguing Teladoc. While BetterHelp has grown into a large consumer telehealth business, its growth has stagnated.   The company estimated in its February earnings report that BetterHelp would only see a flat to low-single-digit revenue increase in 2024, which caused its stock to sink 20% from $20.59 per share on Feb. 20 to $15.64 per share on Feb. 21.

In its February call with financial analysts , Gorevic said the company was expanding efforts to sell BetterHelp virtual therapy subscription services to consumers in Canada, the United Kingdom and other predominantly English-speaking countries, partly because of its struggles with the price of advertising in the U.S. to obtain new customers.

What also hasn't helped is that telehealth utilization has  dropped precipitously after the pandemic. Gorevic said in February 2023 that  broader economic challenge s were forcing the company to focus on profitability rather than revenue growth. These varying factors led Teladoc to lay off 300 employees in January 2023 and an undisclosed number of employees in January of this year.

What’s next for Teladoc?

In a letter sent to employees Friday, Murthy said Teladoc remains in strong financial position. The company reiterated its guidance for the first quarter and full year.  In 2023,  Teladoc posted a net loss of $220 million , or $1.34 per share. It generated $2.6 billion in revenue last year compared with $2.4 billion in 2022. 

KeyBanc Capital Markets managing director Scott Schoenhaus said in an analyst note sent after Gorevic’s departure was announced that investors will view the move as a positive because of the company’s execution challenges in recent years. He said a new CEO should move the focus away from BetterHelp into its enterprise business, which he said was less volatile.

Lennox-Miller agreed the company could de-prioritize BetterHelp as it focuses on higher growth businesses such as its enterprise business for health systems, insurers and employers. He said it wouldn't surprise him should Teladoc attempt to spin off or divest BetterHelp if the consumer brand continued its modest growth.

“Jettisoning Gorevic is the first in a series of signals to investors that Teladoc is serious about reaching profitability this year,” Lennox-Miller said. “Changing CEOs is part of it.  It can’t be the only thing.”

On Monday, the company's stock closed at $14.62 per share.

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Teladoc Health, Inc. Investigation Ongoing: Contact Levi & Korsinsky About Potential Securities Fraud Allegations - TDOC

NEW YORK, NY / ACCESSWIRE / April 9, 2024 / Levi & Korsinsky notifies investors that it has commenced an investigation of Teladoc Health, Inc. ("Teladoc") (NYSE:TDOC) concerning possible violations of federal securities laws.

On February 20, 2024, Teladoc announced its fourth quarter and full year results for the period ended December 31, 2023. The announcement disclosed that Teladoc had experienced substantially less growth than previous forecasted. The Company also disclosed that it was expecting decreased revenue for its BetterHelp segment, an online counseling service. Analysts attributed this trend to BetterHelp's market saturation and increased advertising costs causing a rise the cost of customer acquisitions.

Following the release of the earnings report, TDOC shares fell $4.85/share, or 23.6%, overnight. To obtain additional information, go to:

https://zlk.com/pslra-1/teladoc-health-inc-lawsuit-submission-form?prid=74878&wire=1

or contact Joseph E. Levi, Esq. either via email at [email protected] or by telephone at (212)363-7500.

WHY LEVI & KORSINSKY: Over the past 20 years, Levi & Korsinsky LLP has established itself as a nationally-recognized securities litigation firm that has secured hundreds of millions of dollars for aggrieved shareholders and built a track record of winning high-stakes cases. The firm has extensive expertise representing investors in complex securities litigation and a team of over 70 employees to serve our clients. For seven years in a row, Levi & Korsinsky has ranked in ISS Securities Class Action Services' Top 50 Report as one of the top securities litigation firms in the United States. Attorney Advertising. Prior results do not guarantee similar outcomes.

CONTACT: Levi & Korsinsky, LLP Joseph E. Levi, Esq. Ed Korsinsky, Esq. 33 Whitehall Street, 17th Floor New York, NY 10004 [email protected] Tel: (212)363-7500 Fax: (212)363-7171 https://zlk.com/

SOURCE: Levi & Korsinsky, LLP

Long-time Teladoc leader departs as virtual care provider struggles with post-COVID tumble

The leader of struggling telemedicine provider Teladoc Health has left effective immediately, the company announced Friday

The leader of struggling telemedicine provider Teladoc Health has left effective immediately, the company announced Friday.

Teladoc gave no reason for the departure of CEO Jason Gorevic. The 52-year-old executive had led the company and served as a director since 2009.

Teladoc said Chief Financial Officer Mala Murthy would serve as acting CEO while the company looks for a permanent replacement.

Teladoc lost $220 million last year, and its share price has plunged more than 90% since topping $300 during the height of the COVID-19 pandemic in early 2021.

Teladoc shares soared initially after COVID hit as doctor offices shut down and telemedicine exploded in popularity.

But the company hasn’t been able to sustain that momentum as competition increased and interest in virtual care cooled from its pandemic high.

Teladoc has been turning its focus from acute care visits for things like fevers or strep threat to managing patient health. That includes providing help for mental health care , weight loss and other chronic conditions.

Teladoc spent more than $18 billion in 2020 to stoke that approach with the acquisition of technology company Livongo Health.

BTIG analyst David Larsen said in a research note that the leadership change was not surprising, given the “very significant slow-down” the company has faced the past few years.

Jefferies analyst Glen Santangelo said in a separate note that Gorevic’s departure could be viewed positively, as a change in the company’s strategic direction would be welcomed.

Shares of Purchase, New York-based Teladoc Health Inc. climbed 14 cents to $14.39 in midday trading.

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