Financing Supports Expansion of Virtual Care Platform as MDLIVE Reports Sustained Growth Across All Service Lines
CHICAGO and MIRAMAR, Fla. (Sept. 14, 2020) – MDLIVE Inc., one of the three largest and fastest growing telehealth companies in the U.S. offering virtual healthcare services in all 50 states, today announced the closing of a $50 million crossover equity investment from Sixth Street Growth, the growth investing arm of Sixth Street, a leading global investment firm. The $50 million funding will be used primarily for the ongoing strategic expansion of MDLIVE’s comprehensive, technology-enabled, and disruptive Virtual Primary Care digital health platform. Additionally, it will be used for the launch of supporting products and services that provide the company’s more than 45 million members with convenient access to high quality, cost-effective, contagion-free Total Care. In a separate transaction, MDLIVE secured $25 million in debt expansion from other investors.
MDLIVE has experienced significant and sustained growth that has been accelerated by the COVID-19 pandemic. Following five consecutive years of over 45% visit growth, in the first half of 2020, MDLIVE virtual visits increased by more than 95% and total bookings increased by more than 300%. Through July, MDLIVE completed nearly 1 million patient visits with large increases reported across all service lines, including year-over-year growth of more than 500% for behavioral health, more than 350% for dermatology and more than 80% for medical care. This growth was enabled by a significant increase in the number of active providers, which totaled over 2,000 clinicians as of July 31, 2020, comprising the MDLIVE provider network. Despite the surge in visit volume, MDLIVE’s wait times for healthcare visits have remained under 20 minutes and averaged only 7.7 minutes in July.
“The pandemic has accelerated the rapid disruptive transformation of virtual healthcare delivery,” said Charles Jones, MDLIVE’s chairman and chief executive officer. “With this $50 million crossover investment and the healthcare leadership of Sixth Street, MDLIVE will be able to fulfill its Caring Vision of Cost Containment, Convenient, Contagion-free healthcare delivery. As the demand for MDLIVE’s offerings has reached all-time highs, we remain focused on the expansion of a single, proven technology platform with the flexibility to integrate with devices and the capacity to leverage AI and ingest vast volumes of data necessary for proactive and preemptive care.”
“Virtual care has been a long-term theme for our team, and in an increasingly competitive sector MDLIVE stands out as a scaled and differentiated enterprise technology platform providing high-quality, convenient and cost-effective care,” said Michael McGinn, Partner and Co-Head of Sixth Street Growth. “Their offering accrues to the benefit of all healthcare stakeholders, including patients, providers and payers and we are pleased to be partnering with their team as they continue to grow and successfully meet the increased demand for their services.”
Sixth Street joins an existing roster of high-profile health care investors in MDLIVE that includes Cigna Ventures, Health Care Service Corporation, Health Velocity Capital, Novo Holdings, Industry Ventures, Sentara Healthcare, Sutter Health, Heritage Group and Bedford Funding.
BofA Securities acted as placement agent for the company.