Teladoc revenues, visits rise on heels of UnitedHealth contract

• Teladoc Health’s revenue was nearly $138 million in the third quarter of this year, up 24% from the same quarter a year ago. The telehealth vendor expects full-year revenue for 2019 in the $546 million to $550 million range, according to its release Thursday after the market close.
• Compared with a year ago, paid membership in the U.S. was up nearly 55% to 35 million for the quarter, including 15 million from UnitedHealthcare.
• Use of the platform also grew 45% to 928,000 visits for the quarter. Teladoc expects visits to total between 3.9 million and 4.1 million for the full year.

 

 

 

Despite the growth, Teladoc reported a net loss for the quarter of $20.3 million, or 28 cents per share, and down from a $23.3 million loss, or 34 cents a share, a year ago. For the year, Teladoc expects the net loss-per-share to be between $1.49 and $1.43.
Analysts were bullish on the company's future. SVB Leerink's Daniel Grosslight wrote the "expected good quarter convinces us that the company has built a well-diversified, best-in-class platform that can stave off threats in an increasingly competitive market."
He pointed to catalysts on the horizon for the company, including updates on its inclusion in the UnitedHealth network, more flexible benefits being allowed in MA plans next year, uptake of the Virtual First platform and deeper penetration in the mental health and chronic care market.
Last week, the company announced the launch of Teladoc Medical Experts. The service pairs consumers with complex physical or mental-health needs with a doctor, who helps them navigate virtual and in-person care and treatment options, based on consumers' preferences and preferred networks. Growing out of Teladoc's acquisitions of Advanced Medical and Best Doctors, the service recently enrolled 100,000 employees from Nationwide Insurance and UPS, Teladoc CEO Jason Gorevic said during a quarterly earnings call with analysts.
During the call, Gorevic also touted the inroads Teladoc has made into Medicare Advantage, saying the company has inked contracts with six insurers. The contracts are a result of a final rule from CMS in April giving Medicare Advantage plans more flexibility to pay for telemedicine benefits for people treated in their homes beginning next year.
Though telehealth services have yet to fully catch on, people who have visited a provider virtually are pleased with their experience, according to a survey released this week by J.D. Power.  The survey of nearly 8,300 consumers also found that 85% of telehealth users were able to completely resolve their medical issue as a result of a virtual visit.
Large employers, however, are showing interest in the potential of telehealth to rein in costs. The National Business Group on Health estimates 51% of large employers plan to implement more virtual care tools for their employees next year.
During the call with investors, Gorevic expressed optimism about the growth prospects for telehealth and Teladoc. "As we continue to realize the benefits from our sustained, data-driven member engagement capabilities combined with the breadth of our clinical services, we are uniquely equipped to take advantage of the growing macro consumer adoption tailwinds," he said.
Teladoc also announced that Peter McClennen, president of North American hospitals and group health, will leave the company at the end of the year.
https://www.healthcaredive.com/news/teladoc-revenues-visits-rise-on-heels-of-unitedhealth-contract/566311/