Report from Teladoc Health

Credit Suisse hosted Mark Hirschhorn, Teladoc Health’s COO and CFO at a fireside chat at a small group investor dinner meeting at their Healthcare Conference in Scottsdale, Arizona.

The report resulting from the Conference and management meeting titled Triangulating Next Leg of Growth Drivers: Management Meetings Takeaways, published November 15, 2018, contains comments on such topics related to 2019 revenue growth, organic revenue growth drivers, and adjusting PT to reflect recent broader market volatility.

The report discusses the impact that the CMS Medicare Advantage Telehealth rule will have when it becomes effective in 2020. At this time, Medicare Advantage (MA) plus would be allowed to provide additional telehealth benefits to enrollees and treat them as basic benefits for purposes of bid submission.

Teladoc Health’s management considers the proposal an excellent progression of the alignment of regulation and legislation and if the rule is finalized, the rule will be positive for the telehealth provider industry.

Also, the company believes that the funding arrangement between telehealth providers and Medicare Advantage plans are likely to be the visit-fee only model, but also thinks that some level of risk sharing or ROI contribution sharing mechanism needs to be included.

Teladoc Health’s management thinks that the uncertainty associated with the telehealth adoption and usage among seniors, would make more sense economically for health plans to use a visit-fee only model. The company believes that a low single digit utilization rate roughly two percent among the senior population should be considered a success.

The management also thinks that among all the health plans the company currently services today, roughly half of them, need an additional contract on Medicare Advantage to be assimilated into their existing contracts.

For more information, contact Jailendra Singh Equity Director Research/Manage Care and Healthcare Facilities at +1-212-325-8121 or email

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