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Teladoc’s business model

Teladoc’s business model

CASE DELIVERABLE: In table form, identify Teladoc’s business model in terms of value proposition, profit model, and resources [note: your table should have only 2 columns unlike mine in the lecture notes because you are not comparing Teladoc to anyone else here].


After a long and heated court battle, a United States District Court in Washington D.C. delivered a verdict on the Department of Justice’s case against AT&T’s proposed acquisition of Time Warner. The document that you have is the entire verdict and its rationale in 172 pages. We will use this case to study how industries can be and are defined and how the actions of the players in an industry determine its structure and the path to profitability for its players.

This is a case about competition and anti-trust. At the heart of this case is the question: if the U.S. government permits AT&T to acquire Time Warner, would the new entity (AT&T/Time Warner) become so dominant that competitors would suffer and ultimately consumers like us would be worse off dealing with a monopoly that would charge high prices? The key to this is how each party defined the industry.

Read page 1 to the top of page 28 (till the start of “The Parties and Proposed Merger”).

CASE DELIVERABLE: On page 7, the report talks about “the three-stage chain of production and distribution.” Using my example of the global apparel value chain (on Blackboard), construct an industry value chain with examples of players in each stage. I don’t want a narrative, simply a value chain with details.

Teladoc Wellness, Inc., formerly termed as Teladoc, Inc. and Teladoc Health care Professional services, is actually a international telemedicine and internet healthcare company structured in america.[5] Major providers incorporate telehealth,[6] medical views,[7] AI and google analytics, and licensable program solutions.[2] Especially, Teladoc Overall health uses mobile phone and videoconferencing software program along with portable apps to supply on-need remote control medical care.[6] Billed as the first and biggest telemedicine firm in the states, Teladoc Wellness was launched in 2002[8] and has acquired companies such as BetterHelp in 2015,[9] Greatest Medical doctors in 2017,[10] and Advance Health-related in 2018.[11] It transactions on the NYSE[12] and then in 2019 was productive in 130 nations and dished up around 27 million members. Teladoc was founded in 2002 in Dallas, Tx by G.Byron Brooks EE MD and Michael Gorton. Invoicing itself because the oldest telemedicine business in United States,[8] Teladoc’s original enterprise model allowed sufferers to remotely speak with condition-accredited medical professionals at any time.[13] Firms compensated a monthly charge for their employees to get into the services, while individuals paid a level charge for each and every evaluation, actually about $35 to $40.[8] With Gorton as both chairman and CEO,[14] Teladoc introduced nationally in 2005[8] at the Buyer Directed Health Care Convention in Chi town, Illinois.[14] Teladoc had around 1 million people at the end of 2007, with huge businesses such as AT&T[8] providing the service to employees being a overall health reward.[15]

2009-2014 Jason Gorevic was known as Teladoc’s important professional during 2009.[15] The company’s preliminary unique cash rounds elevated $9 million in December 2009,[16] $4 million in January 2011,[17] and $18.6 million in September 2011.[18] That one year, Aetna started giving Teladoc for its fully covered by insurance participants in Florida and The state of texas, later offering Teladoc in all of the 50 claims.[8] Teladoc received Talk to A Medical Doctor for $16.6 million cash in August 2013,[9] permitting far more portable organizations to get into Teladoc’s professional services. During the time, Teladoc finished 120,000 consults each year.[19] Teladoc elevated $15 zillion in September 2013, with complete financing at that point equaling $46.6 million.[19]

The Reasonably priced Care Respond resulted in numerous insurance companies signing with Teladoc, creating a growth rise around 2014. By that period, insurance carriers like Glowing blue Defend of California and Oscar had agreed upon with Teladoc, and also other companies including Property Depot, T-Mobile, CalPERS,[6] and Hire-A-Heart.[20] Teladoc obtained AmeriDoc for $17.2 million in May 2014.[9] The acquisitions of Talk to A Doctor and AmeriDoc, the two Teladoc’s major rivals, led to Teladoc being the biggest telemedicine provider in the states. With 8 thousand specific individuals,[6] Teladoc’s medical doctors executed 299,000 consults that calendar year.[9] Teladoc’s product sales doubled in both 2013 and 2014,[20] and Teladoc raised $50 million from personal traders in September 2014,[21] delivering complete funding to $100 zillion.[6]


Teladoc executives band the NYSE bell The organization received BetterHelp in January 2015 for $3.5 mil,[9] then Stat Wellness Professional services, Inc. (StatDoc) in June 2015 for $30 zillion.[22][difficult to rely on source? ] After beginning the procedure that April,[23][24] Teladoc went general public on the Ny Carry Change on July 1, 2015.[25] The only telemedicine business about the NYSE,[8] Teladoc’s first general public giving outlined at $19 per share, offering the company a market capitalization of $758 million plus an company price of $620 thousand.[25] The initial reply to the IPO was positive, as gives surged one half on the opening up day.[26][27] Three months right after the IPO, overall health insurance provider Highmark, which symbolized 1.5Per cent of Teladoc’s 2015 profits, ceased to replace an agreement. Teladoc shares dropped significantly as a result, prior to increasing to earlier amounts. In January 2020, Teladoc released that it got reached a binding agreement to spend $600 million to get InTouch Overall health.[41] In August of the identical 12 months, the business released it would attain Livongo Overall health for $18.5 billion dollars.[42]

Solutions and business structure Teladoc Wellness divides its services into six classes: platform and system professional services, guidance and support, professional healthcare providers, psychological wellness providers, telehealth, and included digital attention.[7] Being a application firm, Teladoc Health is included in synthetic intellect, stats tracking, and “licensable foundation solutions.”[2] The company primarily makes use of phone and videoconferencing software to supply on-require far off health care,[6][43] with individuals capable to log on to the service at any moment and be associated with a table-qualified, status-registered medical doctor within many a few minutes.[8]

The company’s medical doctors handle non-emergency situations for example the flu, pink eyes, microbe infections, nasal problems, emotional medical issues, and dermatological situations, amongst others.[8] The organization comes with an professional group of 55,000[44] involved with 450 healthcare subspecialties.[44] While medicine may be prescribed slightly,[6] medical professionals usually do not suggest narcotics or “life-style” medications including Viagra, and refer some instances to treatment centers or crisis bedrooms.[8] In 2014, Teladoc Overall health claimed that it delivered around 1Percent of consultations towards the emergency room, and around 6Percent to your primary attention medical professional or emergency attention middle.[6] In 2019, the corporation also stated that 92% of medical issues have been settled once the very first visit.[45] Doctors all round stick to “more than 100 proprietary medical suggestions” developed by Teladoc Wellness,[8] and they are forbidden from physically getting together with their telemedicine patients.[6] Teams of nursing staff assessment around ten percent of every physician’s consults monthly.[8]

Contracting largely with insurers and large employers,[20] Teladoc Health generates revenue through a yearly[6] or monthly fee charged per subscriber, as well as a fee for individual consults.[8] Some companies waive or subsidize the consult fee for their employees.[6] Teladoc Health has around 3,100 licensed physicians and nurses[44] and services offered in about 30 languages.[1]

Lobbying and rules Teladoc Overall health continues to be associated with lobbying for rules in various claims.[8] In 2015 the Texas Health care Desk ruled that express physicians was needed to physically fulfill with patients before remotely dealing with troubles or recommending therapy. The bill undermined Teladoc Health’s business model in Tx, where it got around 2 million members. Teladoc Wellness charged[46] in national judge over the tip in Teladoc v. Texas Health care Table, arguing the expenses broken antitrust legal recommendations[47] by inflating price ranges and constraining the availability of health care agencies inside the status. The bill, meant to go productive on June 3, 2015, was stalled[46] whilst the suit went through a federal government is attractive the courtroom, enabling Teladoc Health to continue running in Texas inside the interim.[8] Teladoc voluntarily fallen the suit in 2017 after Texas transferred a brand new costs permitting distant treatment with out a prior in-man or woman discussion, which Teladoc Well being had lobbied heavily for.