MDLIVE Secures $50 Million in Growth Funding to Advance AI-Powered Virtual Care Platform

VCBeat (WeChat ID: vcbeat) has learned that on August 1, U.S. telehealth company MDLIVE announced it had secured $50 million in growth investment, led by health insurance giants Cigna and HCSC, as well as Health Velocity Capital. Other participants included Novo Holdings A/S and Industry Ventures.

MDLIVE, founded in 2009, is one of the oldest, largest, and fastest-growing companies in the United States, specializing in building telemedicine platforms that deliver high-quality, convenient, cost-effective, and multi-specialty virtual healthcare services. Through the platform launched by MDLIVE, patients can engage in virtual consultations with physicians, counselors, psychiatrists, and dermatologists. Prior to this, MDLIVE had completed two rounds of financing, raising a total of $73.6 million.

MDLIVE partners with renowned healthcare institutions to provide telemedicine services to over 27 million Americans. Through its platform, patients can conduct virtual visits with licensed physicians, counselors, psychiatrists, and dermatologists. Leveraging the medical industry’s most modern, scalable, HIPAA-compliant cloud platform, MDLIVE delivers convenient healthcare services. Patients, healthcare providers, and health systems can also improve outcomes and reduce costs through this service.

Image source: MDLIVE

MDLIVE CEO Rich Berner stated that this funding enables the company to “continue focusing on delivering top-tier experiences for consumers and clinicians, accelerating the growth of existing medical services—including telehealth consultations in behavioral health, dermatology, and internal medicine—and launching new products to help manage chronic diseases and enhance their predictability.”

Berne also noted that the investment was led by two health insurance giants, “demonstrating their confidence in MDIVE and their belief that an increasing proportion of healthcare services will be delivered virtually in the future. The participation of Health Velocity Capital, the most experienced telemedicine investor in the United States, provides us with an extensive network and telemedicine expertise to support our future growth.”

Regarding MDLIVE’s next objectives, Berne pointed out the need to expand its specialist team and add more virtual medical services to its platform. Furthermore, the company plans to broaden its business by introducing additional solutions, such as exploring the capabilities of Sophie, its AI-powered medical assistant, in predictive health management and intelligent routing.

Virtual healthcare is one of the fastest-growing markets in the healthcare sector, offering solutions to challenges related to healthcare costs and access to medical services. Although this investment will promote the development of telemedicine, a recent Deloitte survey found that the adoption of telemedicine lags behind in the healthcare industry. The survey, which included 624 primary care physicians and specialist nurses, revealed that only 14% reported having access to such telemedicine capabilities. Among the remaining respondents, 18% of physicians plan to expand these services within the next one to two years. When asked about their views on virtual healthcare technologies, they expressed concerns regarding potential medical errors and the protection of patients’ private information.

Tom Meier, Vice President of HCSC, stated, “We continuously analyze the healthcare market to identify innovative partners. MDLIVE provides HCSC with virtual care solutions, helping us deliver higher-quality medical services and an enhanced user experience while reducing healthcare costs. We look forward to collaborating with MDLIVE to virtualize, automate, and optimize healthcare delivery through innovative solutions such as Sophie, an AI-powered personal digital health assistant.”

Marty Felsenthal of Health Velocity Capital stated, “We have previously achieved considerable success in the telehealth market and helped create billions of dollars in value; we are staunch advocates of this field. Telehealth provides patients with a platform where they can complete virtual visits, which encompass primary care, behavioral health, and dermatology consultations, as well as post-discharge services and chronic disease management. With over a decade of experience in the telehealth sector, MDLIVE has established itself as a truly reliable platform that is poised to become the leading next-generation telehealth platform in the United States. We look forward to collaborating to help MDLIVE continue its growth.”

Tom Richards of Cigna stated, “Choice, personalization, and affordability are critical to improving the U.S. healthcare system. Telemedicine impacts all three factors, and we will continue to invest in MDLIVE. This partnership can facilitate virtual visits between patients and healthcare providers. We have observed increased customer satisfaction, a 17% reduction in overall healthcare costs, and a 36% decrease in emergency department utilization.”

Health Velocity Capital focuses on innovative healthcare software and services companies. Current partners include enterprises such as Teladoc, Change Healthcare, US Renal Care, OnShift, Vantage Oncology, and The Advisory Board Company. Health Velocity Capital also invests on behalf of some of the largest and most influential healthcare institutions in the United States. These institutions provide pharmaceutical and PBM services to more than 75% of Americans, covering over 200 hospitals and health insurance for more than 100 million Americans.

Cigna is a global health services company. Its medical offerings encompass a comprehensive range of healthcare services, including dental care, behavioral health, pharmacy benefits, and vision care. Additional products include group insurance, as well as accident and disability insurance. Cigna serves more than 95 million customers in over 30 countries and regions worldwide.

Reference: 1. https://medcitynews.com/?s=mdlive&rf=1

          2.https://www.mdlive.com/