Jason, you just came back from the J.P. Morgan Health Care Conference. What are your main takeaways?
Investor perspectives were mixed regarding the industry outlook for the year. On one hand, there is optimism due to potential rate cuts and a better environment for financially stable companies with positive cash flow like us. On the other hand, skepticism persists about companies facing significant losses and needing additional capital for survival. Concerns were also raised about the IPO market's prospects in 2024, which could pressure private companies seeking liquidity events or additional capital.
Let us now talk about Teladoc Health. What motivated its foundation as early as 2002, when telemedicine was hardly imaginable?
Teladoc Health was inspired by a NASA physician's idea: if astronauts can receive remote medical care in space, why not extend this capability to people on Earth? When I joined in 2009, the company was still in its infancy, but the timing seemed right. The emergence of smartphones, broadband proliferation, and a mismatch in healthcare supply and demand indicated a ripe environment for virtual care.
Teladoc Health aimed to increase healthcare system capacity by leveraging underutilized physician time and overcoming location barriers.
Despite numerous challenges, we were able to create a new approach to healthcare, making us a pioneer in the market.
Did the COVID-19 pandemic boost your business, and has interest in telemedicine remained stable since?
Absolutely, the pandemic rapidly matured the market, advancing it by several years within just 18 months. This growth was not just in terms of volume; it significantly enhanced acceptance and expectations. Pre-2020, the challenge was raising awareness about virtual care. However, the pandemic made it a primary healthcare modality. Now, expectations have evolved from addressing urgent care needs to managing comprehensive health care virtually.
Do the greater expectations for telemedicine play to Teladoc Health's strengths?
These heightened expectations indeed play to our strengths. Teladoc Health offers the most comprehensive virtual care solution in the market, performing over 20 million virtual visits annually and serving one in four Americans, with about 15-20% of our revenue from outside the U.S. Our solutions cater to both B2B and direct-to-consumer, particularly in mental health care. Being recognized as the most trusted brand in healthcare by Newsweek, we believe these expectations favor us over narrower solutions, aligning with both consumer and employer/health plan expectations.
Does your platform allow patients access to care they otherwise wouldn't have, particularly in mental health and chronic care?
Definitely, our platform notably expands access to mental health care and chronic care management. The growth in our mental health business reflects the pent-up demand in this sector. Our platform addresses challenges like navigating the healthcare system and the stigma associated with seeking mental health care. In addition, our direct-to-consumer platform, BetterHelp, with over 30,000 therapists, offers unparalleled access to appropriate care. Similarly, our chronic care solutions empower consumers with tools and technology, like connected devices integrated with AI, for better self-management. This holistic approach to healthcare, encompassing both mental and physical aspects, is a key aspect of our service.
Can you elaborate on Teladoc Health's expansion into the B2B market and its approach to offering mental health solutions to businesses?
We have offered mental health solutions to clients for years, however we have also been gradually expanding our BetterHelp platform into the B2B market. While it is not our primary focus, we are leveraging BetterHelp's capabilities to enhance our B2B mental health offerings. For some employers and organizations, BetterHelp's intuitive and turnkey solution is highly appealing. This approach allows us to cater to different business needs while maintaining the high-quality service we are known for.
How does Teladoc Health assist hospitals, particularly in addressing the healthcare workforce crisis?
The healthcare workforce crisis is a significant challenge for hospitals, and we are addressing this by providing technology solutions. In collaboration with Microsoft, we have developed inpatient connected care, allowing a single nurse or sitter to monitor multiple rooms simultaneously. This technology, enhanced with AI, maximizes the use of scarce resources. It's not just about resource availability; it's also about the cost implications on the healthcare system. Our solutions extend beyond hospital walls, facilitating care delivery in patients' homes, which is often more convenient and safer.
Where do you see Teladoc Health in the next five years?
In the next five years, our goal is to become the primary healthcare provider for as many people as possible. When asked where they receive their healthcare, we envision many will respond with "Teladoc Health." This reflects our commitment to whole-person care, meeting all healthcare needs through expert resources, technology for self-management, or referrals as necessary. We're focused on expanding our clinical scope, making virtual care a more personalized and comprehensive healthcare solution. Our vision is for Teladoc Health to be synonymous with overall healthcare, not just a segment of it.
