Teladoc Case Study

Andrew, Bruce, Ranjani, Sanjna and Shalabh
February 25, 2022

Executive Summary
i
Teladoc U.S. Paid Membership – 36.7M
March - COVID-19 pandemic begins
Teladoc’s virtual visits increase by 92% to
2M during the first three months of 2020
Total visits increased to 4.4M an increase of
41% YOY, however utilization remains an issue
Teladoc Utilization Rate
at 19.6% is very low
 Customer Attitude and Behavior
indicating low awareness of
telemedicine services and
apprehension on security and privacy.
 Barriers to use as not all members have
experience with the technology.
 Supply Constrain of Doctors as there
are limited amounts registered on
Teladoc’s healthcare provider roster.
PROBLEM STATEMENT
 Develop a marketing strategy
predicated on educating consumers
and build on existing core
competencies.
 Improve user experience—App,
website, customer service, and
communication.
 Increase number of doctors by
expanding doctor network
WHY PROPOSAL
Teladoc acquires Livongo for $18.5B to bolster
diabetes monitoring and remote monitoring

Teladoc Business Model
The right care when you need it the most
Physicians
Booking Request and Fees
24 x 7 x 365 Service
Medical Services
Service Fee
End User Onboarding
Service
Subscription Fees
Insurance
Employer
Hospitals
Members
Health Care Plans

Value Proposition of Teladoc
Ability to quickly connect patients with board certified physicians and health
professionals through its scalable technology platform that matches patient demand
Members
 On Demand Care – 24 x 7 x 365
 High Quality Physician Network
 Data Driven care
 Ease of Use
 Cost- Efficient Care
 Superior Experience
Clients
 Savings and ROI
 Consumer Engagement
 Beneficiary Satisfaction
Providers
 Increased Income
 Work Flexibility and Productivity
 Reduced Administration
 Reduction in inefficient use of
emergency room resources for
non-emergent care

Problem
Statement 85 85 84 84 81
15 15 16 16 19
0
10
20
30
40
50
60
70
80
0
10
20
30
40
50
60
70
80
90
100
2016 2017 2018 2019 2020
User Growth (M) % Revenue from Visits % Revenue from Subscription
Data Points
Subscription Fees: $100
Cost savings for Clients: $472*
Number of Members: 1000
TELADOC UTILIZATION RATE IS
VERY LOW (19.6%)
$ 377,600
$94,000
Number of
Users
1000
80%
Members NOT
utilizing services
Members utilizing
services
20%
800 x $472
200 x $470
Unrealized saving
for United
Realized saving
for United
*https://www.fool.com/investing/2019/09/27/how-telemedicine-can-significantly-lower-the-cost
Subscription
Fees
1000 x $100
$100,000
Business Case
 Post Pandemic Telehealth visits are
starting to plateau
 Increase competition
 % Revenue split between subscription and
visits have remained the same even with
tremendous amount of user grow

Why is utilization low?
Customer Attitude and Behaviour
 According to current health surveys, 66% of patients engaged
in using telehealth are unaware of all available services
 Approximately 12K employers offer telehealth services,
however according to Mercer's Study, only 9% of eligible
employees make use of the services
 Apprehension towards security and value of services
Supply Constrain of Doctors
 "I was 33rd in line, after 2 hours I was 12th in line. Then I
moved back to 16th. After another hour, I moved to 8 then
back to 12th. Finally, I made it to next in line," Picha said. "And
it disconnected me.”
 “reschedule request 5 minutes before the appointment time”
 “Teladoc cancelled my appointment without notifying me”
Barriers to Use
 Based on J.D. Power, 52% of users faced issues accessing and
utilizing telehealth, while 35% experienced technological
obstacles in the user interface

Recommendations
Targeted Marketing Strategy: Develop customer centered education campaign for increased and
sustained awareness of services
Enhance Core Capabilities: Improve member experience and increase physician to patient appointment
availability.
Improve customer
awareness
Improve
ease of use
Create personalized
healthcare experiences
Increase physician
availability
Marketing Strategy Core Capability Building

1. Increasing awareness through marketing
1.10 1.31
CAGR:
24.7%
US Telepsychiatry market size
(USD Billions)
With a growing population wanting to use telehealth to address growing mental healthcare issues, we recommend a
marketing campaign emphasizing the value proposition of telepsychiatry and educating consumers on how to use telehealth
National
Impressions: 11.9M
Spend: $87.7k
National
Impressions: 368M
Spend: $1.8M
Enterprise-focused
field sales
professionals
Current Sales and Marketing programs target:
$2.2 M spent in 2020
towards marketing
and advertisements
human resources
and technology
partners.
1 in 5
Americans
“experience a mental health
illness in a given year”

2. Improving customer healthcare experience
AFTER
Improve app and website code to reduce crash
frequency and connectivity of both platforms.
Empower call-center to be able to make
appointments for members per request.
Improve company algorithm to manage members
visit queues and recommend similar providers.
Parallel
Implementation
BEFORE
 There are a limited number of healthcare providers on Teladoc.
 Healthcare provider cancels close to the appointment time with no notification.
 Teladoc call-center is separate from the app support system and is fragmented.
 Teladoc software crashes/ freezes frequently and is not intuitive to use.
 Members are frustrated with Teladoc software but satisfied with provider services.
EVALUATION & SURVEY METRICS
of members say easy-to-use technology would make
them more likely to choose telemedicine services.
69%
of members used the service because they received a
positive recommendation from others: friend or family
member or their primary care doctor or employer
65%
of members wants communication that telemedicine is available, online
scheduling options, immediate availability, a secure communication
platform that protects patient privacy and reviews from other patients.
47%
of members who have used these services were able to
completely resolve their medical concern(s) during their visit
84%

3. Increasing number of consultation hours
Increase number of doctors - to reduce patient wait time and cancellation frequency
Increase doctor compensation - to ensure high-quality, timely care and breadth of talent
Simplify the onboarding process - to expand doctor capacity and standardize service quality
Onboard New Doctors
£0.3
Million
£5.1
Million
Increased
Availability
Increased
Revenue
Wider
Network
Improve
Timeliness
Get Doctors on Payroll
£0.3
Million
£5.1
Million
100%
availability
Reduced
Time High Quality
High Income
for Doctors

Short and long-term Risks
 Competition for other telehealth
providers – mimicking Teladoc's
model taking market share and
reducing profitability
 Expensive maintenance costs -
Increase in marketing material
costs, software upkeep, and high
physician costs.
Long-term Risks
Short-term Risks
 Member’s leveraging
Teladoc's value
proposition to gain
knowledge and defect to
competitors with similar
telehealth models and
services
 Loss of sales due
to reduction in
conversion rate in cross
service selling
 Technology updates
could lead to missed
opportunities for offered
telemedicine services
reducing overall
utilization
 Lack of effective staffing
training and equipment
to help patients
 Financing of Physicians
on Teladoc's payroll
requires high upfront
costs
 Potential for mismatch in
number of required
physicians
 Accuracy of data
transmission, treatment,
and diagnosis of patients
Customer
Awareness
Customer
Experience
Hospitals, Physicians,
and Health Systems

Opportunity Size – Telehealth in General
Health Care Market
US: $3.8 T
Global: $7.3 T
TAM: $261B
By 2026 $8.04T 8.1%
↑

How does Teladoc make money?
The right care when you need it the most
Insurance
Employer
Hospitals Physicians
Visit Fees
Service Fee
Subscription Fees
Consumers
Insurance claims and health plans

Teladoc Technology Architecture
 Our enterprise scale platform is architected for real-time
sharing of clinical and non-clinical data in real time
among the Teladoc constituents, which include:
Members, Providers, physician network operations center
staff, nurses, SureScripts for electronic medication
prescription writing, routing and fulfillment and health
plans for real-time eligibility checking, real-time Member
financial responsibility calculations, claims processing,
clinical summaries and clinical alerts.
 The Teladoc Provider network leverages our technology
platform for managing custom visit queues that
automatically and instantly route available visits to
appropriate Providers based upon proprietary algorithms.
Providers use our internet-based application or iOs app
for viewing their visit queue, scheduling visits and
following the proprietary Teladoc workflow for reviewing
Members' medical history and symptoms, documenting
the actual visits, e-Prescribing, if appropriate, and
sending applicable medical content with follow up
instructions to the Member via a secure message center.
We use data and analytics to predict demand patterns by
geography and we recruit and manage our Provider
network to meet the demands of our patients.

Teladoc Reviews
Source: Personal, Apple Appstore, Reddit, Health Forums, YouTube, Blogs

Implementation
 Multi-channel approach
 Aggressive and viral social media
campaigns
 Targeted marketing approach:
 By age
 By location, urban vs rural
 Demographics data
 Vlogs and Blogs to educate
customers
 Satisfaction surveys
Marketing Strategy Improving Customer Experience Increasing the number of doctors
 Reduce friction and minimize
steps for booking of an
appointment
 A/B Testing
 Incorporate customer feedback in
app
 Consistent s/w updates
 App explanation videos
 Constant and transparent
communication
 Enhanced customer service
through dedicated call centers
 Dedicated and targeted marketing
campaigns for hiring doctors
 Easier onboarding process for
doctors
 Innovative payment and benefit
models
 Competitive compensation
 Including doctors feedback and
improving ecosystem

Threat of New Entrants
Source: Healthcare IT News, Fierce Healthcare News, CNBC, Walmart.com

MH Startups in Telemedicine
Dialogue
Montreal
(Canada)
Funding: $88M
Talkspace
New York City
Funding:
$109M
NOCD
Chicago
Funding: $50M
Cerebral
San Francisco
Funding:
$462M
Mindstrong
Mountain View
Funding:
$160M
LifeStance
Bellevue
BetterHelp
Sunnyvale
Zenklub
Sao Paulo
(Brazil)
Funding: $4M
The Inner Hour
India
Funding: $6M
Shezlong
Egypt
Funding: $519K
Source: https://tracxn.com/d/trending-themes/Startups-in-Mental-Health-Telemedicine

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