Doctor On Demand Acquisition: Key Details, Impact, and What Comes Next

The acquisition of Doctor On Demand by Included Health marks a significant milestone in the healthcare industry. This strategic move aims to create a more inclusive and comprehensive virtual care platform, addressing the fragmented nature of the U.S. healthcare system. By integrating services for diverse and underserved populations, the combined entity is set to enhance healthcare equity and accessibility.

What Is Doctor On Demand?

Founded in 2013, Doctor On Demand offers a comprehensive telehealth service providing 24/7 online doctor appointments. Its core services include urgent care, mental health support, therapy, and psychiatry. Unique selling points include its round-the-clock availability, high patient ratings, and compatibility with most insurance plans, potentially making visits free. The platform ensures confidentiality with HIPAA compliance and offers accessible care through both its website and mobile app.

Who Acquired Doctor On Demand?

Included Health is a prominent player in the healthcare industry, offering a comprehensive suite of services that include primary care, urgent care, behavioral health, and specialty care. The company provides both in-person and virtual care, ensuring accessibility and convenience. Key services also encompass billing advocacy, second opinions, and a 24/7 care team. Known for its inclusive and high-quality healthcare, Included Health is trusted by leading organizations and boasts a high satisfaction rate among its users.

When Was Doctor On Demand Acquired?

Included Health acquired Doctor On Demand on May 26, 2021. This acquisition occurred during a period of heightened focus on healthcare inclusivity and digital health solutions, driven by the COVID-19 pandemic. The merger aimed to address the fragmented U.S. healthcare system by integrating virtual care services, particularly for underserved populations such as the LGBTQ+ community. This strategic move aligns with broader industry trends towards comprehensive, patient-centric care models.

Why Was Doctor On Demand Acquired?

• Market Expansion: The acquisition of Doctor On Demand by Included Health is a strategic move to expand their market reach, particularly in serving diverse and under-resourced populations such as the LGBTQ+ community. This expansion aims to improve health outcomes and address health challenges for these communities. The combined entity aims to serve nearly 100 million covered lives, significantly broadening its impact.
• Technology Integration: Included Health benefits from Doctor On Demand's advanced technology platform, which includes innovative data science and deep data integration. This integration supports a comprehensive range of services, including primary care, specialty care, behavioral health, and chronic condition management. The combined technological capabilities provide a seamless, personalized healthcare experience that can follow the patient wherever they go.
• Competitive Advantage: The merger creates a first-of-its-kind integrated virtual care company with a multidisciplinary team that includes a significant percentage of people of color and LGBTQ+ individuals. This diverse clinical team and the combined expertise in virtual care, navigation, and expert medical opinions provide a competitive edge in delivering personalized, culturally competent healthcare. The company's comprehensive and inclusive healthcare offerings make it more attractive to potential employers and health plans, positioning it as a one-stop-shop for digitally delivered care.

Acquisition Terms

• Acquisition Price: The terms of the agreement, including the acquisition price, were not disclosed.
• Payment Method: The merger was an all-stock transaction.
• Key Conditions or Agreements:
  • The transaction is subject to regulatory approval and customary closing conditions.
  • The merger is expected to close in the first half of 2021.
  • Owen Tripp, CEO of Grand Rounds, will serve as the CEO of the expanded business.
  • Doctor on Demand CEO Hill Ferguson will continue to run that side of the company and will join the board.
  • Both companies will continue to operate under their existing brands for the time being.

Impact on Doctor On Demand

The acquisition of Doctor On Demand by Included Health has led to significant changes in operations and management. Owen Tripp, CEO of Grand Rounds, now leads the integrated company, while Doctor On Demand CEO Hill Ferguson continues to manage that side of the business and has joined the board. Both companies will maintain their existing brands for the time being. This strategic move aims to enhance the combined entity's ability to provide culturally competent healthcare, particularly for underserved populations such as the LGBTQ+ community, by integrating their services and technology platforms.

Product offerings and services have also seen notable enhancements. The merger has expanded the range of services to include primary care, specialty care, behavioral health, chronic condition management, and 24/7 triage. This comprehensive suite aims to provide a seamless, personalized healthcare experience. Employee reactions have been generally positive, aligning with the company's mission to mirror the diverse population it serves. Customer feedback has been favorable, particularly from the LGBTQ+ community, who have faced significant healthcare discrimination. For founders considering business transitions, tools like Sunset can assist in managing such processes compliantly and efficiently.