In MegaMerger, Teladoc Buys Diabetes Coaching Company for $18 Billion

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Yesterday we told you about one industry that appears to be forever changed by the pandemic, the oil and gas business. Well, here's another healthcare. These days make a doctor's appointment and it says likely to occur on your screen as in an office maybe even more likely virtual appointments were on the rise before covid nineteen but the pandemic put this trend on steroids telehealth use tripled as the virus spread around the globe according to a healthcare research firm called. Robo Global. Half of adults age twenty five and older have virtually visited a healthcare provider over the last few painful months. The firm says music to the ears of anyone who runs a telehealth company more than half of those patients were brand new to telemedicine can handle one more statistic well, nine out of ten of those patients told Robo. that. They'd be happy to see Dr Virtual again most likely that include you. So why am I telling you all this or because at least two companies are making big hey from this socially distanced phenomenon last week telemedicine leader Tele Doc announced it's buying Digital Health, coaching? Company. Forget this eighteen and a half billion dollars. It's rare to see those kinds of numbers. Even in Silicon Valley acquisitions, although there are many privately owned telemedicine companies, Tele Doc which was founded in two thousand and two is the only publicly traded one because of the pandemic business is booming in early March, the company was conducting about ten thousand remote medical appointments a day just a month. Later, that number had doubled. The company told The Wall Street Journal. Tele Doc is purchasing a company called the von. Go using Technology Levin go remotely monitors and coaches patients with chronic illnesses. CEO Glenn Tolman founded the company after his young son was diagnosed with type one diabetes. The Condition Levin go is best known for the publicly traded company later expanded to help care for people suffering from chronic problems like high blood, pressure, anxiety, and depression. According to CNBC Tele Doc had long planned to add services for remotely managing chronic conditions and La. bongos leaders had been thinking about moving into telehealth. The two companies quote were either on a path of convergence or collision Tele Doc CEO Jason Gora Vic told. CNBC. Industry publication healthcare dive calls the do the country's first digital health megamerger and by far the largest consider this Google is working on an acquisition a fitbit for what now looks like a meager two billion dollars the trade publication points out. The TALLADEGA deal is set to close by the end of the year proved it'll create an entity worth thirty, seven, billion dollars expected revenues in its first year with top a billion dollars or almost double the two companies sales this year sound promising well, not so fast Wall Street dinged both company's stock prices saying the price was inflated and that telehealth might be an covert bubble. which wants the pandemic finally, Wayne's could pop furthermore there are plenty of challenges on both sides. Tell dot faces a host of telemedicine rivals such as privately held doctor on demand but perhaps the bigger issue is that the eye-popping size of the deal could create copycats other big healthcare companies both virtual and traditional have probably already started shopping for their own remote chronic care management acquisitions. The stock price of Levine go rival Barrio health, which also manages chronic illnesses spiked almost thirty percent following the news. But let's get real. What could all this mean for most of us? One Stop Virtual healthcare management that's at least part of the answer, your blood pressure spikes you'll see it on your digital sensor and maybe through that same device, your virtual doctor will be contacted automatically if it gets bad enough, it's a future that could be more convenient, less personal, not very private and very lucrative for digital health entrepreneurs. Watch this space.

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