Teladoc Health, a leading telehealth provider, has announced its plans to acquire Catapult Health, a virtual preventive care provider, for $65 million. This strategic move is aimed at enabling Teladoc to identify members’ health conditions early and guide them towards the telehealth vendor’s array of services, including therapy and primary care.
One of Catapult Health’s standout offerings is a virtual annual exam, where patients can conduct tests such as blood pressure checks and provide screening information to a nurse practitioner using an at-home diagnostic kit. The company boasts a substantial client base with hundreds of employer customers and over three million covered lives.
The acquisition deal, which includes an additional contingent payment of up to $5 million, will see Catapult Health operating as a wholly owned subsidiary of Teladoc. The preventive care company’s team members will continue to work with Teladoc post-acquisition, ensuring a smooth transition and continuity of services.
Teladoc’s focus on chronic condition management is evident in this acquisition, as Catapult clinicians will be able to enroll eligible members in Teladoc’s programs for diabetes, hypertension, pre-diabetes, and weight management. This aligns with Teladoc’s efforts to drive enrollment in chronic care management programs, with nearly 1.2 million individuals enrolled as of September.
The telehealth vendor’s partnership with Amazon’s digital health benefits marketplace further underscores its commitment to expanding its offerings and driving enrollment. Teladoc’s CFO, Mala Murthy, highlighted the company’s dedication to innovation and differentiation in the competitive telehealth landscape.
While the acquisition of Catapult Health is expected to enhance Teladoc’s services, there are considerations about the long-term value of the integration, given Teladoc’s history of M&A challenges. Notably, the company faced non-cash goodwill impairment charges following its acquisition of Livongo for $18.5 billion in 2020.
As Teladoc prepares to release its fourth-quarter earnings, stakeholders will be watching closely to assess the impact of the Catapult Health acquisition and the company’s overall financial performance. Despite the challenges, Teladoc remains a key player in the telehealth industry, driving innovation and expanding access to virtual care for millions of individuals worldwide.
