How Teladoc Works: Demystifying Its Business and Revenue Model
Advancement in technology has left no stone untouched when it comes to transformation. Constant progress in technology has also altered people’s preferences towards everything so why is healthcare left behind? Before the pandemic, the healthcare sector was hesitant and not that much aware of tech tools but today it seems like the corona pandemic has acted as a catalyst in increasing investment in online health applications. USA-based Teladoc has made its name in the virtual healthcare industry. Now you must be curious to know what it is, how it works and how it makes huge profits. Well, hold your breath and keep on reading.
Today, patients need on-demand healthcare assistance to mitigate rising health risks. Nobody wants to travel long distances and stand in long queues. Especially, virtual healthcare applications bless remote areas where healthcare facilities are inadequate. People now can schedule an online doctor appointment at their convenience.
The medical industry keeps evolving with time and technological advancements, as per the research, from 11% in 2019 to 77% in 2020, the virtual healthcare market has bloomed. Teladoc is the popular platform that offers online medical care and perhaps changes the entire medical industry drastically. Patients now can talk to experienced doctors about their health issues and receive remote care for medication.
What is Teladoc
Established in 2002, Teledoc is the popular and largest telehealth platform, offering on-demand healthcare anytime, anywhere within the smartphone. Right now it operates in more than 170 countries and has more than 20 million members, available in 30 languages, Teledoc is the best option when you need help with acute or chronic health issues.
Since the establishment, the company has tied up with many international hospitals, insurance companies, and health delivery organizations. In the year 2019, the company has accomplished 4 million virtual care visits while due to the pandemic, it has experienced a significant hike in the revenue and user base. As a result, it saw a 93% jump in visits amid the first quarter of 2020.
Teladoc Company Facts, Timeline and Funding History
Founder: Jason Gorevic
Headquarter: New York, USA
Industry: Medical Care
Area Served: 130+ countries
Revenue: $553 million
App downloads: more than 2 million
Language: Available in 30 languages
Stock Symbol: TDOC
Share Price: $19
In the initial days, Teladocs had faced several issues as physicians were not willing to join the platform. As a result, the only retired and disabled doctors joined the platform and made their initial network. On the other hand, people were also not that much comfortable with the idea of virtual healthcare assistance. Even some board members also said that it’s illegal and unethical, Gorton had admitted in this interview.
Despite overcoming these roadblocks, Teladoc’s journey was smooth and it took five years to reach one million members. Now let’s see Teladoc’s journey at a glance as it is exciting and inspires other entrepreneurs to take a step into the online medical industry.
- 2002- Established in Dallas, Texas by Gorton and Brooks
- 2007- Crossed 1 million members
- 2014- Acquired Consult a Doctor and Ameridoc
- 2015- Company finally went public on NewYork Stock Exchange ( NYSE)
- 2016- 15 million members and holds 75% of US market share
- 2017- Acquired medical consultation firm for $440 million
- 2018- Teladoc Inc. becomes Teladoc Health
- 2020- Biggest merger with Livongo and crossed 50 million users
As per the data revealed from Crunchbase, Teladoc has raised $172.9 million from various investors such as Icon Ventures, Trident Capital, HLM Venture, and Silicon Valley Bank.
When Teledoc went public in 2015, it had an enterprise value of $ 620 million with a market value of $758 million. In the year 2020, Teladoc posted annual revenue of $1.09 billion in their board meeting.
How Does Teladoc Work
Teladoc health can be used via call or video calling as patients need to download the app, they can choose the best from 3000 licensed doctors and make an appointment as per their timing schedule. After the consultation, they need to make payment from the options given in the app to the website. It’s quite easy to get started, let’s see how it works.
- Visit Teladoc, register yourself, complete your medical history so that physicians can guide you on an instant basis. If you are 18 years old then you need to create an individual account whereas you can add members who are below 17 years.
- Login to your account or call 1-800-Teladoc to book an appointment. The physician will review your medical history and contact you within ten minutes. Usually, the waiting time is around 8 minutes or less than that.
- After the consultation, make payment. ( need to pay $40 per consultation).
- A doctor will recommend the treatment for your problem. However, you can also send prescriptions online.
This is how Teladoc has won millions of hearts as it follows a simple workflow and allows customers to choose from 55000 medical professionals with more than 450 subspecialties.
Teladoc Business Model
Teladoc Health is growing across the USA and all set to establish its footprints in the European market. Teladoc follows the simple business model as it works with insurance companies and 5000 doctors. The company working on three business models:
- Collects monthly fees from patients
- Charges a fee per visit
- Also offers an annual subscription plan
Patients can choose any of these plans and start booking appointments with doctors. On the other side, Teladoc pays professionals based on the appointment request they receive. The company keeps the difference amount and pays the rest of the amount to the doctors.
In the year 2018, Teladoc’s net profit was $417.9 million which was double from the year 2017. Out of this revenue, $350.8 million was received from subscription revenue, while one-time visit pay only made up $70 million or you could say 15% of the total revenue. Teladoc usually charges $49 per user, the telehealth market keeps soaring huge profits and it is expected to grow in the coming years. Right now, Teladoc is the largest virtual healthcare company but it only holds a small pie of this large market.
How does Teladoc Make Money?
Teladoc’s major revenue source is from the subscription-based model. Patients pay annual or monthly fees for consultation. The subscription-based plan starts from $49, they also sell services to clients on behalf of their employees. In the year 2015, it also acquired BetterHelp, a venture that offers direct consumer access to mental health issues.
After this acquisition, in the year 2018, with the help of BetterHelp, the company has generated $60 million which contains at least 17% of total revenue. However, due to the pandemic, the company has observed major growth in terms of revenue and user base as more than 2.4 million users across the USA have asked for a consultation.
Investing in Teladoc Clone Offers Myriad of Opportunities
Telehealth growth attracts the eyes of investors as it keeps growing due to digitization. The Healthcare industry keeps evolving, from ordering medicine online to virtual consultation and much more, modern tech tools have attracted entrepreneur’s mindsets. If you are running a conventional medical business and want to increase revenue using digital tools, investing in a Teladoc clone benefits you quickly and allows you to establish a firm identity in the healthcare landscape.
Virtual healthcare applications help new and small professionals to begin the online consultation service with low risk and speed up the overall development process. The global online healthcare market is forecasted to reach 177,794 million by 2026. It also allows doctors to earn additional income while it benefits patients also as they no longer need to commute, by sitting at home, they can consult professionals while spending less.
The online medical industry is not booming, it’s exploding. Take the advantage of this pandemic by shaking hands with skilled technology partners and capture the huge market share. If you are engaged with the medical industry and want to become a part of this large market, investing in the virtual health market would be the wisest decision you can ever make.
How Much Does it Cost to Build a Teladoc Clone?
No one can give a straightforward answer to this question. The cost of Teladoc clone development based on various factors such as features and functionalities, location, and platform. Your application also should have all the modern features such as easy signup, swift and secure payment options, prescription upload feature, and much more that makes virtual consultation hassle-free.
To know the exact cost of an app similar to Teledoc, contact us with your unique idea. Our team of experts will help you plan, guide, develop and grow your conventional business at the lightning speed.