Teladoc acquires UpLift for $30 million

Teladoc Health announced that by acquiring UpLift and adding to the company’s suite of integrated virtual care services, it would expand patient access to mental health services and bolster its BetterHelp network.

WHY IT MATTERS

UpLift, which provides virtual mental health therapy, psychiatry and medication management services, has arrangements with health plans offering the services of more than 1,500 mental health professionals as well as digital capabilities to more than 100 million insureds, Teladoc said in its announcement Wednesday.  

With the $30 million acquisition of UpLift, Teladoc’s BetterHelp will open up its consumer-driven virtual therapy business to allow benefits coverage networks to include its therapists in employer plans.

“BetterHelp was founded to remove the traditional barriers to therapy and make mental health care more accessible to everyone,” Fernando Madeira, BetterHelp president, said in a statement.

UpLift’s own business will benefit from Teladoc’s scale and the expanded capabilities the partnership brings, according to Kyle Talcott, the company’s founder and CEO. 

Talcott will continue to lead the segment under Teladoc’s ownership with ongoing responsibility for its provider network management, quality and patient outcome oversight, and the acceptance and administration of insurance coverage.

“Teladoc Health is uniquely positioned to help us accelerate the impact of our mission,” he said. 

The all-cash transaction, which closed Wednesday, included up to $15 million in additional contingent earnout consideration. UpLift’s results will be included in the company’s BetterHelp reporting segment going forward, Teladoc said.

THE LARGER TREND

When virtual care showed a noticeable market decline last year, Teladoc withdrew its 2024 forecast as shares of its stock dropped in value. 

By the third quarter of last year, BetterHelp revenue decreased 10%, though Teladoc had a stronger-than-expected showing, bringing in $640.5 million in revenue, representing a 3% dip year-over-year. 

At the time, Teladoc executives called BetterHelp a “company in transition.”

Earlier in the year, BetterHelp agreed to pay $7.8 million to settle allegations that it shared consumers’ health data for advertising, according to the Federal Trade Commission.

ON THE RECORD

“We believe joining forces with UpLift will help us advance [our] mission – especially for those seeking to use their coverage benefits – while also driving topline revenue growth that will help sustain and expand our impact over time,” Madeira said in a statement.

Andrea Fox is senior editor of Healthcare IT News.
Email: [email protected]
Healthcare IT News is a HIMSS Media publication.