Doctor On Demand, the virtual doctor visit platform, has closed a $50 million round of Series B financing, bringing its total amount raised to-date to $74 million, it announced yesterday (June 17).
The funding will be used to continue Doctor On Demand’s expansion of its video telemedicine service, which aims to address what the company describes as two “massive problems” in health care: skyrocketing costs and increasingly limited access to quality physicians and psychologists.
Doctor On Demand’s service may have plenty of room for growth in the booming global telehealth market.
According to an IHS report released last year, the telehealth industry – comprising the use of medical devices and communication technology to monitor diseases and symptoms – is projected to grow to $4.5 billion by 2018, up from $440.6 million in 2013.
“Doctor on Demand provides customers one-on-one sessions with physicians either through an individual account or through employer partnerships such as Comcast Corporation. It also works with national health plans such as UnitedHealthcare and Blue Cross Blue Shield Association, and claims to provide in-network or subsidized access to more than 25 million Americans,” TechCrunch reported.
The company attributes its position as the “telemedicine partner of choice,” to the customer experience provided, as well as its unique business model.
“We launched Doctor On Demand to improve access to some of the best health care providers in the country,” co-founder and CEO Adam Jackson said in a statement. “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,” Jackson added.
While competition in the telehealth market is heating up, Jackson doesn’t seem phased about Doctor On Demand going up against other players in the industry.
“It looks crowded but there are two categories you can be in in this space. You’re either practicing medicine or you’re not,” Jackson told TechCrunch. “Practicing medicine means you are taking on all the liability, you’re using real board certified doctors, you’re prescribing medicine.”
The funding was led by Tenaya Capital and included new investors Qualcomm Ventures, Dignity Health, Anne Wojcicki and additional growth stage firms. Existing investors Venrock, Shasta Ventures and Sir Richard Branson also participated.
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