Virtual care provider Teledoc Health will acquire InTouch Health for the purchase price of $600M. InTouch is a telehealth solutions company for hospitals and health systems with more than 450 hospitals and health systems and 14,500 physician users globally. The company generated approximately $80 million in 2019, according to estimates.
The $600 million purchase price includes $150 million in cash and $450 million of Teladoc Health common stock. InTouch is Teladoc’s latest significant acquisition. In 2018, the company also acquired a virtual provider, Advance Medical, for $352 million. Also in 2018, Teladoc launched a new global service for people all over the world to virtually access physicians who speak their languages and local healthcare services.
The strategic acquisition will position Teledoc as a partner choice for major health systems as a virtual care solution. The company will be the only virtual care company with the full range of acuity for care, including critical, chronic and everyday care, according to the announcement. The newly combined entity aims to meet the needs of providers with a single, integrate solution.
“Today marks a bold leap forward in Teladoc Health's mission to transform how high-quality healthcare is accessed and experienced, making virtual care available for patients with even the most critical care needs," Jason Gorevic, CEO of Teladoc Health, said in a statement. "Bringing these companies together will make Teladoc Health the clear virtual care leader across every front door of healthcare, further accelerating the adoption and impact of virtual care for millions of people around the world."
InTouch’s offerings include an integrated technology software suite with purpose-built devices and a secure global network. The acquisition comes at a time when demand for virtual care services is surging. In addition, reimbursement is increasingly favorable to virtual care, incentivizing providers to add these solutions. For example, 40% of hospitals plan to increase their budgets for telemedicine, a 2019 JPMorgan report found. In addition, a whopping 61% of hospital revenue is expected to come from managed and value-based models in 2021.
"Now is the perfect time for us to join together with Teladoc Health and deliver to hospitals and health systems everywhere what they've been asking for - a single, enterprise solution to support their virtual care strategies and enable them to better engage with patients at every point along their healthcare journey," Joseph M. DeVivo, CEO at InTouch Health, said in a statement.
The transaction is expected to close at the end of the second quarter of 2020.
Amy joined TriMed Media as a Senior Writer for HealthExec after covering home care for three years. When not writing about all things healthcare, she fulfills her lifelong dream of becoming a pirate by sailing in regattas and enjoying rum. Fun fact: she sailed 333 miles across Lake Michigan in the Chicago Yacht Club "Race to Mackinac."