Telehealth provider Doctor On Demand today announced $75 million in Series D funding. The raise was led by General Atlantic, and also included the company's prior investors.
The round puts Doctor On Demand's lifetime raise in the neighborhood of $239 million.
WHAT IT DOES
The San Francisco-based company provides virtual care services directly to consumers as well as through arrangements with health plans and employers. It fully employs several hundred licensed providers who deliver urgent, primary, chronic, preventive and behavioral care through the web and app platform.
Doctor On Demand has long been among the frontrunners of telehealth care delivery, and recent months have only added to its business. According to a representative, usage is up 139% this year due to COVID-19 screenings and other health issues, and the company has more than doubled its total covered lives. Of note, the company has recently extended its virtual services to 33 million Medicare Part B beneficiaries across the U.S., and in the past year launched new programs with Humana and Walmart, among others.
WHAT IT'S FOR
The company said in its announcement that the new money would fuel growth and expand access among U.S. patients.
“COVID-19 awakened the industry to the benefits of virtual care as a means to reach all patient populations, and at the same time, demonstrated the high quality of care that can be delivered in a virtual-first setting,” said Hill Ferguson, CEO of Doctor On Demand. “Doctor On Demand will remain dedicated to delivering high-quality, compassionate care to our patients, and innovative, cost-effective solutions to our partners as we continue to expand access and launch new capabilities.”
The increased telehealth utilization Doctor On Demand is describing adds to the chorus of telehealth and virtual care companies reporting COVID-19 spikes. Teladoc Health said during its most recent investors call that it had "significantly" raised its revenue and visits projections, while AmWell described a similarly booming business in May when it announced a $194 million raise.
With that being said, recent reports suggest that telemedicine visits have hit something of a plateau since April, with overall telehealth visits steadily declining (although visit volume is still higher than was reported pre-pandemic).
ON THE RECORD
“Doctor On Demand is a virtual care pioneer in both video-based consults and virtual primary care, with a differentiated clinical model and behavioral health offering that allows the company to efficiently scale and provide value to patients, providers, and payers alike,” Robbert Vorhoff, managing director and global head of healthcare at General Atlantic, said in a statement. “We believe virtual care has reached an inflection point, with significantly increased adoption levels, and that Doctor On Demand is well positioned to capture the sustained growth of the broader industry. We are thrilled to invest in Doctor On Demand’s continued innovation and partner with Hill and the management team as they help shape the future of healthcare delivery.”