Telemedicine giant Teladoc has acquired Best Doctors, a virtual medical consultation company, to enable a connected care platform focused on improving outcomes for some of the most complex medical conditions. Under the terms of the deal, which is expected to close next month, Teladoc will pay $375 million cash and $65 million of Teladoc common stock. The company reports it has secured $360 in financing from Jeffries Finance LLC and Jeffries Group LLC.
This acquisition takes Teladoc out of the realm of its current repertoire of offering primary care, common dermatology conditions and behavioral health (which it mainly does through episodic care) and into a wider spectrum of medical conditions, including those that are critical and often expensive.
“Today is a big day for patients and the greater healthcare system. At Teladoc, our vision has always been to provide the central, trusted source for consumers to find resolution to the broadest array of healthcare needs, on their terms,” Teladoc CEO, Jason Gorevic said in a statement. “Now with Best Doctors’ network of world-renowned experts in over 450 specialties, global footprint, and exceptional analytic capabilities, we are taking a monumental step towards making that vision a reality.”
Best Doctors operates under the notion that a patient’s geographic location need not restrict their access to specialists or the number of physicians necessary to receive the proper diagnosis and treatment. The company’s InterConsultation platform connects patients with the appropriate medical expert to review diagnoses and treatment plans, effectively facilitating a second opinion without the need for the patient to leave home.
Best Doctors also offers a feature called Critical Care Support to give patients guidance and support during medical events that require emergency treatment, and individuals can also use the platform to connect to find a doctor or connect to an expert following a diagnosis -- rather than Googling their way into scary information. Built on a network of over 50,000 medical experts representing more than 450 medical specialties, Best Doctors uses cognitive computing and advanced analytics to enable population health management and insights to drive specialized treatments for complex medical conditions.
“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,” Best Doctors CEO, Peter McClennen, who will continue to lead Best Doctors as president of the new division of Teladoc, said in a statement. “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.”
As a combined company, Teladoc and Best Doctors will offer their differentiated suite of virtual care for a wide range of partners, including employers, health plans and health systems. Teladoc will also focus on taking the service global, the company said.
This is far from Teladoc's first acquisition. The company picked up telemedicine company Stat Health Services for $30 million in 2015 and employee health benefits app-maker HealthiestYou for $125 million last year.