Teladoc Health recently announced a significant expansion in its mental health services by acquiring UpLift, a virtual mental health therapy provider. This acquisition will strengthen Teladoc’s BetterHelp network of health plan relationships and enhance its suite of integrated virtual care services.
UpLift offers virtual mental health therapy, psychiatry, and medication management services, with arrangements in place with health plans that cover more than 1,500 mental health professionals. This partnership will allow BetterHelp to include its therapists in employer plans, making mental health care more accessible to a wider audience.
Fernando Madeira, President of BetterHelp, expressed his excitement about the acquisition, stating that BetterHelp was founded to remove traditional barriers to therapy and improve access to mental health care for all. Kyle Talcott, CEO of UpLift, will continue to lead the segment under Teladoc’s ownership, overseeing provider network management, quality control, and insurance coverage administration.
The all-cash transaction, which closed recently, included additional contingent earnout consideration of up to $15 million. UpLift’s results will now be included in Teladoc’s BetterHelp reporting segment moving forward.
This acquisition comes at a time when virtual care experienced a decline in the market. Teladoc had a stronger-than-expected showing last year, with revenue reaching $640.5 million, despite a 3% decrease year-over-year. BetterHelp revenue decreased by 10% in the third quarter, but Teladoc executives remain optimistic about the future of the company.
In a statement, Madeira expressed his belief that joining forces with UpLift will advance their mission and drive revenue growth to sustain and expand their impact over time. This acquisition marks a significant step forward in Teladoc’s commitment to providing accessible and high-quality mental health services to a broader audience.
Andrea Fox, Senior Editor of Healthcare IT News, can be contacted via email at afox@himss.org. Healthcare IT News is a publication by HIMSS Media, covering the latest developments in healthcare technology and innovation.
