Final week the digital well being world was taken by storm when information broke that digital well being large Teladoc was set to acquire chronic care management platform Livongo in a whopping $18.5 billion deal.
Livongo has had fairly a 12 months in a half. Final July, it went public with a list worth of $28 a share. On the time of the acquisition, every share was valued at roughly $159. Its information has additionally included main partnerships, together with a take care of the Federal Employee Health Benefits Program, which despatched its inventory costs leaping.
Right this moment there’s a number of hypothesis about what’s subsequent for the joint Teladoc and Livongo enterprise. Earlier this week MobiHealthNews caught up with Dr. Jennifer Schneider, the president of Livongo, to speak about what this acquisition may imply sooner or later.
“If you concentrate on actually delivering a consumer-centric digital care-delivery expertise that sits throughout, acute, episodic and power care … then escalation to the proper supplier and proper care staff on the proper time, all pushed by underlying information science, [is key]. While you add Teladoc plus Livongo what you get is that entire expertise. What Teladoc brings is an unbelievable entry to 70 million individuals with a great deal of information and the flexibility to ship a one-to-one service at scale. What Livongo brings is a digital-first footprint, a robust information science engine and the flexibility to ship a one-to-many at scale, so it truly is the mix of the 2 organizations that’s delivering on that shared widespread imaginative and prescient of this consumer-centered digital care.”
As with every acquisition with information concerned, there are at all times questions. She spelled out how Livongo thinks of that information and the way it may be used sooner or later.
“One of many issues that we maintain as agency tenet is the information we’re accessing across the units … gathering the biometric information actually belongs to the members. It’s actually the members’ information, and we’re going to proceed to place the members on the middle of that and proceed to leverage the information solely in a method to permit one of the best optimum look after that particular person individual. That features or may embody escalating to a telehealth supplier. It may embody sharing that along with your current supplier group, whether or not that be family and friends or different docs at brick-and-mortar.”
The merger is but to be finalized, as are the main points of what the mixed firm may appear like sooner or later, however we do know that there could also be some sort of collaboration or escalation from Livongo’s power care platform to Teladoc’s digital visits.
“I’ll hypothetically offer you an instance. Think about [there’s] someone with hypertension on the Livongo platform, and what we discover is that this individual is taking their medicine, however their blood stress nonetheless stays elevated. We begin to say they’re most likely not on the proper medicine. With Teladoc as a useful resource at the side of Livongo, we will then transition that individual to the Teladoc supplier with the underlying info for these modifications to be made with higher well being outcomes for that particular person member.”
Whereas the enterprise mannequin is coming collectively, the precise management remains to be be labored out. To this point, we all know that Teladoc CEO Jason Gorevic will proceed in his position and head up the three way partnership. As a part of the deal, Livongo will maintain 5 out of the 13 board seats, and the present board chair, David Snow, will stay in his present seat. As for the specifics, there’s nonetheless a lot unknown.
This acquisition additionally brings to mild the rising subject of digital well being, and what future care fashions may appear like, particularly as bigger corporations start to merge.
“I give it some thought as much less … ‘What number of startups do we’d like?’ versus, ‘How can we greatest resolve issues for individuals?” she stated. “It was very clear for us that, as profitable as we had been as a publicly-traded firm within the chronic-condition area, with the intention to actually get to scale and ship on our imaginative and prescient round this related digital care supply we would have liked to have extra prescribing energy and integration with suppliers. From the Teladoc lens they might see that they wanted extra digital-first, extra information science and extra give attention to power situations, which [drive] 90% of all healthcare prices right this moment.”
Whereas it seems like the way forward for this joint firm might be going in direction of a mixed mannequin, power care will nonetheless be a predominant focus for Livongo.
“We began in diabetes and by no means meant to be a diabetes [company]. If we had been, we might have named our firm one thing about diabetes, however we didn’t. We named our firm Livongo, dwell on the go. What we did was say, ‘Let’s begin with diabetes. Let’s have a look at that situation. Let’s enhance that have.’ And, in doing so, what we discovered was 70% of our members with diabetes even have hypertension, one other 40% additionally undergo from hypertension [and] one other 30% are battling weight. As you’ll be able to see, the concentric buildup of the corporate was about addressing, on the core, what was the member expertise, and what did we have to ship to make that have higher?”