- Teladoc, an embattled telehealth company, is staking its future on a new primary-care product.
- Called Primary360, the service is meant to stave off growing competition in telehealth.
- It has signed on 50 health plans and employers, according to data provided to Insider.
Teladoc’s new primary-care business is starting to take off, according to internal data shown to Insider.
The product, called Primary360, is Teladoc’s big bet to build the next chapter of growth for a company best known for connecting patients to doctors online to treat their one-off issues, like sore throats.
That model isn’t enough to compel investors in a world where health plans are building their own virtual-care services and startups like Included Health gear up to go public. Teladoc is under the added pressures of the $13.9 billion acquisition of the chronic-care company Livongo, a huge expense that the
giant hasn’t been able to justify to Wall Street more than a year later.
The company will present its fourth-quarter earnings for 2021 on Tuesday. CEO Jason Gorevic will likely talk up Teladoc’s future in “whole-person care,” an approach meant to cultivate deeper relationships across conditions.
Central to that strategy is Primary360. It sets up patients with a care team on the Teladoc app, monitoring their health over time. It acts like a central hub, and the team can pass patients into other channels — including Teladoc services and in-network providers — as needed. That puts the company in a position to break into more lucrative contracts that put it in charge of a bigger slice of employers’ and health plans’ spend. Then, Teladoc can take part in any savings it creates for them.
Patient enrollment in the program, which launched in October, is surpassing internal expectations by more than twofold, a Teladoc employee told Insider, speaking on condition of anonymity to share internal data. About 25% of those living with
were newly diagnosed in their Primary360 visits, Teladoc told Insider. That shows primary care can help patients before they get sicker and incur more costs. The company said it had signed on 50 health plans and employers using the service as of January, including 11 companies in the Fortune 500.
We got the pitch deck that Teladoc has been using to pitch Primary360 to health plans and employers. Teladoc removed financial forecasting, pricing information, and proprietary client data that the company would normally include.