Investors reacted nervously to last Friday's news that recently floated telemedicine outfit, Teladoc had lost a $1.5m deal with Highmark, causing the stock's price to fall over 20%. The company has since announced it will be re-evaluating its relationship with Highmark and is in talks with other potential partners for future deals. Highmark is yet to officially comment on why it decided not to renew Teladoc's services contract, and is unlikely to do so on the record, but observers in-the-know have speculated on two causes: Teladoc's pricing model and Highmark's disappointment at telemedicine utilisation figures.
Investors reacted nervously to last Friday's news that recently floated telemedicine outfit, Teladoc had lost a $1.5m deal with Highmark, causing the stock's price to fall over 20%. The insurance company instead opted for offering its members a choice between two telemedicine services, Doctor on Demand and American Well. Highmark is yet to officially comment on why it decided not to renew Teladoc's services contract, and is unlikely to do so on the record, but observers in-the-know have speculated on two causes: Teladoc's pricing model and Highmark's disappointment at telemedicine utilisation figures.