Teladoc acquires Catapult Health for $65 million

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Teladoc Health has signed a definitive agreement to acquire preventive care company Catapult Health for $65 million, and will leverage the latter’s at-home diagnostic testing capabilities and clinical support model, Teladoc said.

According to Teladoc, the acquisition supports its integrated care segment strategy, which focuses on four key objectives: grow membership and use of services; leverage clinical strength and product breadth to deepen the impact on healthcare outcomes; expand its international business; and advance its scaled mental health position.

Catapult’s capabilities will help when it comes to early detection of health conditions, and is expected to deliver better health outcomes in care management, the company said.

WHAT’S THE IMPACT

Teladoc touted Catapult Health’s at-home wellness exam, VirtualCheckup, in which members receive a kit with materials needed to collect blood samples, check blood pressure and provide other health screening information. 

This is followed by a virtual visit with a licensed nurse practitioner to discuss test results, review key health risks and create a personalized health action plan.

When Catapult Health’s members are assessed with conditions or high-risk factors that require a health action plan, its clinicians will be able to directly enroll eligible members into Teladoc’s diabetes, hypertension, pre-diabetes and weight management programs, and refer them to Teladoc’s virtual mental health therapists and primary care providers.

The company will also use Catapult’s technology to support new product enhancements, such as providing customers with lab-confirmed A1c values on which to base population enrollment and close gaps in care.

Following the closing of the transaction, Catapult will operate within the Integrated Care segment of Teladoc. The all-cash transaction includes up to $5 million in additional contingent earnout consideration. 

Catapult Health’s twelve-month revenue was approximately $30 million as of the third quarter of 2024.

THE LARGER TREND

The demand for home care is increasing as the population ages.

A September report from the John A. Hartford Foundation found that as the U.S. population ages at an unprecedented rate, the demand for age-friendly care is skyrocketing, revealing significant gaps in the nation’s healthcare infrastructure. The study highlights critical areas such as chronic disease management, mental health services and post-acute care.

Last month Teladoc said it was teaming with Amazon to expand access to its telehealth chronic condition programs.

Amazon customers who are eligible for Teladoc Health’s diabetes, hypertension, pre-diabetes and weight management programs can enroll in these cardiometabolic care benefits directly through Amazon’s Health Benefits Connector, previously known as Health Condition Programs.

Amazon offers scale by surfacing eligible benefits to customers when they search for related products or devices. Nearly a quarter of adults say they are unaware of all the benefits available through their health plan, Teladoc said.
 

Jeff Lagasse is editor of Healthcare Finance News.
Email: jlagasse@himss.org
Healthcare Finance News is a HIMSS Media publication.