Teladoc recently announced its financial results for the third quarter of 2021, providing investors with an update on the company’s earnings, as well as giving insight into the future direction of its Primary360 virtual-first primary care offering.
- Financial highlights included year-over-year revenue growth of 81% to $522m, driven by strength in its BetterHealth mental health unit, and a 37% increase in total visits as a result of steady adoption for Teladoc’s direct-to-consumer offerings.
- Teladoc revealed on its investor call that it plans to begin taking on financial risk with its Primary360 solution in the future. The company is aiming to generate savings with its virtual-first program and will take on risk where it can have the most impact.
- CEO Jason Gorevic said that the rollout of risk taking for Primary360 would develop in tiers, “from first clinical measures, to then risk corridors to, ultimately, full capitation.”
- Primary360 was only recently made available to payors nationwide, but Teladoc stated that it is beginning talks with hospitals about white-labeling the service for them to use as their own digital front door.
Since Primary360 integrates a wide range of Teladoc products, the service generates significantly higher revenue per member than the company’s general medical and mental health solutions.
Most health plans lack the network and provider base required to develop a nationwide virtual primary care solution in-house, but as telehealth demand rises and pressures them to begin offering the service, many are turning to options like Primary360 to meet the need.
If Teladoc can successfully meet this demand while taking on risk, it will be able to capture a larger share of any savings it generates, further improving the economics of the service.