The largest telemedicine provider in the U.S., Teladoc, has announced a $440 million deal to acquire virtual consultation company Best Doctors in a move that could further consolidate its hold on the telehealth market.
The $440 million purchase will be divided between $375 million in cash and $65 million in Teladoc stock. According to the company’s press release, Teladoc will be able to deliver a “powerful connected care platform” for addressing periodic, preventive care to managing complex, chronic conditions with the goal of improving outcomes and reducing costs.
“At Teladoc, our vision has always been to provide the central, trusted source for consumers to find resolution to the broadest array of healthcare needs, on their terms,” Teladoc CEO Jason Gorevic said in a statement. “Now with Best Doctors’ network of world-renowned experts in over 450 specialties, global footprint, and exceptional analytic capabilities, we are taking a monumental step towards making that vision a reality.”
Best Doctors’ value for Teladoc comes from its capabilities for treating more complex cases. Two of its best known products focus on increasing access to specialists for reviewing treatment plans and diagnoses (InterConnected) and offering guidance for emergency medical events (Critical Care Support). Both of these services utilize the company’s network of more than 50,000 physicians and medical experts.
The purchase could broaden Teladoc’s scope of services to cover higher-acuity patients. Its current offerings are focused on primary care and behavioral health, though that hasn’t stopped the company from achieving a 75 percent market share in telemedicine.
“By combining data and analytics with a focus on nothing but the highest standard for care, we’ve successfully created a better way for patients and their families across the globe to get resolution to the most life-changing medical conditions,” Best Doctors CEO Peter McClennen said in a statement. “Now aligned as one greater organization under Teladoc, the impact we can make together is tremendous, delivering a paradigm shift in care access that comes with a phenomenal patient experience, unprecedented outcomes and cost savings.”
McClennen will be staying with Best Doctors after the deal is finalized as president of a new division within Teladoc.