SAN FRANCISCO--(BUSINESS WIRE)--Doctor On Demand, the leading Video Telemedicine provider, today announced it has closed a $50 million round of Series B financing. The company will use the funds to continue the rapid expansion of its top rated video telemedicine service, which addresses two massive problems in health care: skyrocketing costs and increasingly limited access to high quality physicians and psychologists.
Doctor On Demand’s top-rated service and unique business model is changing the telemedicine space, an industry projected to grow to $4.5B by 20181. Legacy telemedicine providers use phone-based callbacks to treat patients, and charge subscription fees to provide access to doctors. This approach has failed to achieve widespread consumer adoption and cost savings. Leading legacy telemedicine firms report that only 15% of revenue is generated by patient visits – subscription fees generate the remaining 85%.
In contrast, Doctor On Demand offers immediate, video-based access to top physicians and psychologists, with no subscription fees for partners. Consumers have responded by awarding Doctor On Demand’s apps with more 5-star App Store reviews than all other telemedicine apps combined. This superior consumer experience, combined with its unique No Subscription (PEPM) Fee business model, has made Doctor On Demand the telemedicine partner of choice for an increasing number of companies. At Doctor On Demand, partners only pay when their employees or members have a Video Visit.
Since announcing Comcast Corporation as its first Fortune 100 customer, Doctor On Demand has aggressively grown its employer base. Today, it also announced that more than 200 employer customers now work with Doctor On Demand to offer physician and psychologist video visits through employee health and wellness programs. With these employer relationships and Doctor On Demand’s partnerships with national health plans, such as UnitedHealthcare and now through the national Blue Cross Blue Shield Association, more than 25 million Americans have in-network or subsidized access to Doctor On Demand.
Union Bank & Trust recently switched to Doctor On Demand from a legacy telemedicine provider. "We have offered telemedicine for a few years, but it was expensive and employee utilization was low," said Chad Thies, Vice President of HR at Union Bank & Trust. "This year we switched to Doctor On Demand. I've gotten great feedback from our employees about the quality of the doctors and how easy Doctor On Demand is to use. With more employees taking advantage of the benefit, we're already reducing our healthcare costs."
"Doctor On Demand has helped us reduce healthcare costs by helping our employees avoid unnecessary urgent care and emergency room visits," said Paul Henry, Vice President of Total Rewards for The Brink’s Company. "From an employer perspective, there really is no risk. With Doctor On Demand’s pay-as-you-go business model, you only pay for what you use."
"We launched Doctor On Demand to improve access to some of the best healthcare providers in the country," said Adam Jackson, co-founder and CEO of Doctor On Demand. "Subscription fees are wasteful and make it much harder for legacy telemedicine programs to generate positive ROI. Our No Subscription (PEPM) Fee, pay-as-you-go model fully aligns us with our partners. Plus, patients love the quality of our providers and the simplicity of our technology, which drives extremely high utilization."
The funding was led by Tenaya Capital and included new investors Qualcomm Incorporated, through its venture investment group, Qualcomm Ventures, Dignity Health, Anne Wojcicki, and other growth stage firms. Existing investors Venrock, Shasta Ventures, and Sir Richard Branson also participated. Doctor On Demand has now raised more than $74 million in total funding.
Source
1 – IHS, 2014
About Doctor On Demand
Doctor On Demand is a healthcare service that provides Video Visits with Board Certified Physicians, Psychologists, and other providers via smartphones, tablets, and desktop computers. Doctor On Demand delivers services through employers, health systems, health plans, and directly to consumers. Patients simply download the Doctor On Demand app or visit www.doctorondemand.com, provide a list of their symptoms, and are instantly connected for a Video Visit. Consumers rate Doctor On Demand as the best Video Visit provider. The company has more 5-star App Store reviews than every other telemedicine app combined. 87% of patients love Doctor On Demand so much they have recommended it to their family and friends. Entrepreneurs Dr. Phil McGraw, Jay McGraw and Adam Jackson founded the company in 2012 to provide fast, easy, and cost-effective access to high quality medical and behavioral health care. Doctor On Demand is based in San Francisco. To learn more, please visit www.doctorondemand.com.
