Investors Include Health Velocity Capital and Proven Healthcare Leaders Cigna and Health Care Service Corporation
SUNRISE, Fla. (August 1, 2018) – MDLIVE Inc., one of the nation’s largest and leading telehealth platforms which is focused on delivering high-quality, convenient, cost-effective, multi-specialty virtual access to care, today announced the closing of a $50 million growth investment led by experienced telehealth investor, Health Velocity Capital; by existing partners Cigna Corporation and Health Care Service Corporation (HCSC); and with participation from Novo Holdings A/S and Industry Ventures.
With this financing, the new investors join a roster of high-profile existing investors in the health care and technology sectors including Sentara Healthcare, Sutter Health, Heritage Group and Bedford Funding. The virtual health market is one of health care’s most important ways to address our nation’s cost and access challenges and, accordingly, represents one of health care’s most rapidly growing markets. MDLIVE is one of the nation’s highest quality, oldest, largest and fastest growing companies addressing this opportunity.
“Choice, personalization and affordability are critical to improving the U.S. health care system,” said Tom Richards, Global Leader for Strategy & Business Development, Cigna. “Telehealth impacts all three of these factors and we are continuing to invest in MDLIVE as a proven leader in the space. As a result of our partnership with MDLIVE to offer virtual visits with care providers, we have seen improved customer satisfaction, as well as a 17 percent decrease in total medical cost and 36 percent decrease in emergency department utilization for that population.”
MDLIVE provides more than 27 million Americans with convenient access to telehealth services they know and trust utilizing partnerships with some of the nation’s most trusted and recognized health systems, health plans and hospitals. The company provides virtual visits with U.S. board-certified doctors, counselors, psychiatrists and dermatologists. By providing convenient access to health care through the industry’s most modern and scalable HIPAA-compliant cloud-based platform, patients, health care providers and health care systems benefit through improved outcomes and overall cost savings.
“We continuously scan the healthcare market to identify innovative partners. MDLIVE, which powers HCSC’s Virtual Visits product offering, helps our members gain improved access to quality healthcare, provides a superior customer experience, and helps lower the cost of healthcare,” said Tom Meier, Vice President of Market Solutions, HCSC. “We look forward to working with MDLIVE to virtualize, automate and optimize much of the care our members receive via innovative solutions, such as Sophie, MDLIVE’s AI based personal digital health assistant.”
“With considerable previous success in the telehealth market and having helped generate billions of dollars in value creation, we are huge believers in this sector,” according to Health Velocity Capital Managing Partner Marty Felsenthal. “We believe telehealth is a platform play with customers wishing to access virtual primary care, behavioral health care, dermatology, and, in the future, virtual post-discharge services, virtual chronic condition clinics, connected devices, and a myriad of other use cases from a single source. With more than a decade of experience in this sector, we believe there is a real scarcity of credible platforms from which customers can choose and believe MDLIVE to be the nation’s leading next-generation telehealth platforms. We look forward to leveraging our relationships to help MDLIVE continue its very strong growth trajectory.”
“We are proud to be partnering with one of the nation’s most experienced telehealth investors in Health Velocity Capital and with two of the nation’s six largest health plans in Cigna and HCSC. This investment is a testament to the great results our team has delivered for our clients, and these relationships cement our standing as the nation’s go-to telehealth platform.” said Rich Berner, CEO of MDLIVE. “We look forward to using this funding to help further accelerate our industry-leading consumer and clinician experience as well as accelerate the growth of the company.”
Raymond James & Associates, Inc. served as financial advisor, and Willkie Farr & Gallagher LLP served as legal advisor to MDLIVE. Polsinelli PC served as legal advisor to Health Velocity Capital. Morgan, Lewis & Bockius LLP served as legal advisor to Cigna.