Doctor on Demand raises $50M for video visits, 23andMe CEO invests

By Aditi Pai
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Doctor on DemandSan Francisco-based video visits company Doctor On Demand raised $50 million in a round led by Tenaya Capital with participation from new investors Qualcomm Ventures, Dignity Health, and 23andMe CEO Anne Wojcicki. Existing investors, Venrock, Shasta Ventures, and Sir Richard Branson also contributed. Doctor On Demand has raised more than $74 million in funding to date.

Doctor On Demand offers its service to patients directly or through employers, health systems, and health plans. Patients can use the service, available via iOS and Android apps as well as the web, to connect with physicians, psychologists, and even lactation consultants.

To use the service, patients request to see a doctor and are matched with one that is licensed in their state. Based on their video visit conversation, physicians can prescribe medications to patients if needed or provide the patient with another course of action.

Video calls cost $40 per visit to speak with a provider, $50 for a 25-minute session with a psychologist, and $40 for a 25-minute session with a lactation consultant. Doctor On Demand does not offer a subscription service, it only charges per visit, which means its employer and health plan customers only pay when a member or employee actually uses Doctor On Demand. 

Doctor On Demand also announced that more than 200 employers, including Comcast and Union Bank & Trust, are now offering DOD's service to their employees. Other groups that use Doctor on Demand include MultiCare Health System in Washington and CliniCloud, which offers a connected medical kit. Doctor on Demand is one of a handful of video visits providers, including American Well, that UnitedHealth recently announced it would subsidize for its members. Through health plans and employer partnerships, Doctor on Demand's service is available in-network or at a subsidized rate to more than 25 million Americans.

Meanwhile, video visits company Teladoc, recently announced its plans to IPO. The company's SEC filings disclose that Teladoc has more than 4,000 customers, including employers, health plans, and healthcare providers. More recently, Teladoc disclosed that it had acquired Stat Health Services, which offers the online doctor visit service Stat Doctors, for $30.5 million.

Earlier this month news broke that Israeli pharma company Teva had invested "tens of millions" of dollars in one of Doctor On Demand's other competitors, American Well.

Around the same time, American Well filed a patent infringement lawsuit against Teladoc. The lawsuit, filed in Massachusetts District Court, alleges that Teladoc’s technology platform willingly infringes on a 2007 American Well patent. The suit asks for triple damages plus court fees, as well as an injunction against Teladoc continuing to do business.