Telehealth’s tightrope

Digital health’s publicly-traded company cohort saw some shake-ups in Q1 2024, and things are still feeling unsteady for virtual care players on the NYSE and Nasdaq. Teladoc announced the departure of its longtime CEO after the company missed its fourth quarter 2023 earnings estimates and lowered projected revenue for 2024. Amwell, another telehealth giant, is on delisting watch after trading near $1 per share for several weeks, far from its peak of more than $42 per share.

Teladoc’s and Amwell’s situations tell a bigger story about the state of virtual care. While consumer adoption is high, the market is well penetrated, which translates to limited growth potential for players selling basic telehealth solutions—as well as valuation cuts for pandemic-era companies that overestimated market size. Competition is tight between virtual care players, and it’s compounded by other convenience-focused healthcare alternatives like retail clinics, which also often offer virtual care. For telehealth platforms, the pressure is on to diversify their offerings, expand into higher-value therapeutic areas, and build momentum around new consumer value drivers

Headlines

Epic Cracks Down On Startup For Unauthorized Sharing Of Patient Data
Digital health companies face heightened scrutiny over data management and use CNBC

Cedars-Sinai Expands Virtual Healthcare For Children And Spanish Speakers
Innovating at scale to close equity gaps for acute, chronic, and preventive care HIT Consultant

Understanding Ties Between Telehealth Prescribing And Antibiotic Overuse
D2C telehealth companies urged to align to antibiotic stewardship guidelines STAT

Recent Funding

• Grow Therapy, a virtual platform to connect patients with mental health providers, nabs $88M
• Cariloop raises $20M for its employee benefit to support family caregivers