The combined company will offer a range of virtual care options for markets that include employers, health plans and health systems. The deal also allows Teladoc to develop global expansion plans.
Telehealth platform Teladoc, Inc. will purchase medical consultation company Best Doctors in a deal valued at $440 million, the two companies announced this week.
In a joint media release, the two companies said the deal marries Teladoc’s technology, engagement capabilities, and scalable platform with Best Doctors’ network of medical experts, analytics, patient decision-support, and regional expertise. The combined company will offer virtual care services for markets that include employers, health plans, and health systems. The deal also allows Teladoc to develop global expansion plans.
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The purchase price includes $375 million cash and $65 million of Teladoc common stock, and the deal is expected to close in July, subject to regulatory approvals and routine closing conditions.
“When you think about what these two industry leaders have been able to do independently, it’s clear that the potential impact that we can make together is truly inspiring,” said Jason Gorevic, CEO of Purchase, NY-based Teledoc. “What you can expect to see with these two companies coming together is a comprehensive, virtual healthcare environment that will help consumers find resolution across a wide spectrum of healthcare needs.”
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Privately held Best Doctors was founded in 1989 by Harvard Medical School professors and now claims more than 40 million members globally. In 2014, Best Doctors acquired Rise Health to expand of its digital health services. Best Doctors generated $92.2 million in 2016, $23.7 million in the first quarter of 2017, and is expected to generate more than $100 million this year.
“By combining data and analytics with a focus on nothing but the highest standard for care, we’ve successfully created a better way for patients and their families across the globe to get resolution to the most life-changing medical conditions,” said Best Doctors CEO Peter McClennen, who will be president of the Best Doctors division under Teladoc. “Now aligned as one greater organization under Teladoc, the impact we can make together is tremendous, delivering a paradigm shift in care access that comes with a phenomenal patient experience, unprecedented outcomes and cost savings.”
John Commins is the news editor for HealthLeaders.