Teladoc Health Virtual Primary Care Model Influences Q3 Earnings
Teladoc Health’s recently launched virtual primary care model helped the company see successful third quarter earnings.
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- Telehealth company Teladoc Health launched a virtual primary care model and saw an increase in revenue and visit volume during the third quarter of 2021, according to its recent earnings report.
The company produced $521,658,000 in total revenue in Q3 2021 compared to $288,812,000 in Q3 2020, amounting to an 81 percent year-over-year growth. The company saw a 37 percent year-over-year growth for total visits in Q3 2021, going from 2,835,000 visits in Q3 2020 to 3,885,000 visits in Q3 2021.
Teladoc also saw growth in US paid membership and US visit fee-only access numbers, with 52.5 and 23.6 million members in Q3 2021, respectively.
The company credited its virtual primary care service Primary360 with helping to influence the 2021 earnings.
“The third quarter was notable in expanding relationships with a number of leading national health plans with the successful launch of our Primary360 offering which reimagines the primary care model and delivers increased access and engagement to members,” Jason Gorevic, chief executive officer of Teladoc Health, stated in the press release accompanying the earnings report.
Teladoc launched Primary360 in October 2021. The virtual program aims to increase access to primary care services, especially for patients who do not have a primary care physician. Four out of five adults do not have a consistent relationship with a primary care provider, according to Teladoc.
Past pilot programs for the virtual care model have revealed that two-thirds of users did not receive regular primary care services.
The virtual model has helped users treat undiagnosed chronic illnesses and identify other diseases in a timely manner, the company said. In the model’s first year, 25 percent of new chronic diagnoses in users were for common conditions like diabetes and hypertension.
Members can access a primary care physician for a new patient visit within a week through Primary360, according to the company. The physicians can provide patients with a personalized care plan that will remind the patient about follow-up appointments and required actions.
Additionally, users can receive support from a care team, help with connecting to other specialty services like mental healthcare, and assistance with setting up an in-network, in-person appointment, if necessary.
The care model also offers 24/7 access to a provider for non-emergent conditions, Teladoc said.
“Primary360 has the unique power to drive the unified health care experience that consumers are demanding by removing longstanding barriers like access, cost, and convenience,” Donna Boyer, chief product officer at Teladoc Health, said in the press release.
The telehealth company has partnered with CVS Health and Centene to increase access to primary care services, with the payers set to offer the virtual care model to its members.
Teladoc expects to keep improving in quarter four, the company noted in the earnings report. Total revenue for Q4 2021 is expected to be between $536 and $546 million, while the expectation for total visits falls between 3.9 and 4.1 million.
The COVID-19 pandemic led to many patients delaying care, especially annual wellness checkups with primary care physicians. Telehealth providers are teaming up with payers more frequently to increase access to virtual primary care services.
