Teladoc Health to Acquire InTouch Health for $600 Million, Creating the Only End-to-End Virtual Care Platform Covering All Clinical Settings

VCBeat (WeChat ID: vcbeat) learned from foreign media that on January 12, 2020, Teladoc Health, a global leader in the telemedicine sector, announced it would acquire InTouch Health, a U.S.-based virtual care company, for $600 million. The transaction is expected to be completed in the second quarter of 2020.

InTouch Health, founded in 2002 and headquartered in California, USA, is a web-based virtual care company. As a leader in acute care telemedicine solutions, the company partners with more than 450 hospitals and healthcare systems worldwide and serves over 14,500 physician users. Furthermore, InTouch Health supports more than 130 health systems and 2,135 care sites, covering over 40 clinical use cases, and has been ranked by KLAS Research as the world’s leading virtual care platform for two consecutive years.

InTouch Health is dedicated to providing customers with telemedicine networks and services, aiming to deliver high-quality clinical care to patients while reducing overall healthcare costs. Leveraging their extensive experience in telemedicine, telecommunications, medical products and services, and robotics, the company’s senior executives help health systems rapidly and seamlessly deploy telemedicine programs. By offering a comprehensive suite of software, hardware, connectivity, and services, InTouch Health meets all telemedicine needs. The company provides a scalable platform capable of delivering care for any use case in any setting.

Upon completion of this acquisition, Teladoc Health will become the world’s only virtual care company covering all care domains and the preferred partner for health systems seeking a single, comprehensive solution for their virtual care strategies. The company’s offerings will span from critical care and chronic disease management to routine care, extending across diverse settings including homes, pharmacies, retail locations, physician offices, and ambulances. Furthermore, this acquisition is expected to drive Teladoc Health’s long-term revenue growth.

This acquisition comes at a time of significant growth in demand for virtual care services, as hospitals and health systems increasingly adopt favorable reimbursement mechanisms. According to a 2019 JPMorgan study, 40% of surveyed hospitals reported plans to increase their budgets for telehealth solutions. By 2021, it is projected that 61% of hospital revenue will come from managed and value-based care models (LEK 2018 Hospital Research Survey), with virtual care playing a key role in enhancing consumer engagement, ensuring care quality, and reducing healthcare costs.

Joseph M. DeVivo, CEO of InTouch Health, stated, “Now is the optimal time for us to join Teladoc Health and collaborate with them to provide a single, comprehensive solution for hospitals and health systems. Whether it involves expanding clinical capabilities, increasing physician resources, or supporting optimized care outcomes, we are a trusted partner.”

With the aging population and rising prevalence of chronic diseases, the demand for nursing care is growing rapidly, and virtual nursing will be increasingly utilized to improve patient outcomes. This acquisition creates a single, integrated virtual nursing solution for hospitals and health systems. By covering all areas of care, this solution enables clinicians to deliver optimal patient care in new settings such as homes, during transport, and in retail environments.

Jason Gorevic, CEO of Teladoc Health, stated, “Today marks a bold step forward for Teladoc Health. Through this acquisition, we aim to transform the way high-quality healthcare is accessed and experienced, extending virtual care even to patients with the most critical care needs. Integrating these companies will position Teladoc Health as a leader across all domains of virtual care and further expand the impact of virtual care on millions of people worldwide.”

InTouch Health completed six rounds of financing totaling $49.2 million prior to its acquisition, with the latest round closed on May 31, 2018.

Teladoc is a global leader in the virtual healthcare sector. Founded in 2002 and headquartered in New York, United States, Teladoc operates the world’s largest telemedicine platform, delivering healthcare services to customers anytime and anywhere via mobile devices, the internet, video, and telephone. Its solutions directly connect with members, offering acute care diagnoses through more than 1,100 board-certified physicians and behavioral health professionals available online. Nearly 110,000 members have benefited from accessing Teladoc’s services. As of 2015, the company had provided telemedicine care to approximately 576,000 individuals.

(Compiled by Yang Xiaohui)