The nation’s employers are signing hundreds of contracts with telehealth vendors that link patients to doctors online for consultations designed to avoid an expensive trip to the emergency room or an unnecessary office visit.
A glimpse into this trend can be seen in the third-quarter earnings of Teladoc (TDOC), the first publicly-traded telehealth company, which Monday evening reported an 83% increase in revenue to $21 million. Total membership jumped 56% to 12.6 million and helped earnings top Wall Street’s estimates.
Teladoc said it has signed more than 500 new accounts for 2016 with clients that includes Starbucks SBUX -0.82%, Dell , Merck , Marriott and Mercedes Benz. “Our business is hitting on all cylinders,” Jason Gorevic told analysts and investors on the company’s third-quarter earnings call.