MDLive Raises $23 Million in New Financing for National Telehealth Platform

1-24-2014 11-21-46 AM

Sunrise, Fla.-based telehealth startup MDLive announces that it has closed a $23 million investment round led by the Heritage Group, and with additional participation from Sutter Health and Kayne Anderson Capital Advisors. MDLive has already raised $27 million from initial investor Sentara Healthcare, and ex-Apple and Pepsi CEO John Sculley. The round brings MDLive’s total amount raised to $50 million.

MDLive is developing a subscription-based telehealth platform that offers on demand virtual visits for a monthly rate of $14.95 per month, or $24.95 for a family plan. MDLive offers more than an alternative to primary care services, the company connects patients to a number of specialists, as well as licensed therapists and dieticians. Unlike many of its competitors, MDLive is available to consumers in all 50 states. Physicians with MDLive are able to write prescriptions for non-controlled substances to treat their patients’ condition.

“The Affordable Care Act is creating a huge opportunity. We’re realizing that the majority of people’s appointments with doctors are for things that could be done online.” – John Skulley, MDLive investor.

Sculley reports that physician recruitment has not been a problem. The claim seems to be true since they are able to offer services in all 50 states even though most states require a local, state licensed, physician to treat patients, even over telehealth platforms. Sculley reports that telehealth care provides physicians flexibility in their work hours and allows them to supplement their earnings.

As bi-partisan political support continues to grow for telehealth programs, investors are flocking to startups in the market. Last year CMS expanded telehealth reimbursement policies, Congress introduced a bill that would further expand it, and more than 20 states had pro-telehealth reimbursement laws on the books.

Beyond telehealth, MDLive provides cloud-based billing and medical records system for ambulatory practices. The software was designed as a collaboration tool, and is built around the concept of using secure email, voice, and video to coordinate care between telehealth providers and local physicians.

The company reports that it will use the new funding to build out its software platform to make it more competitive in the ambulatory practice market. It will also launch a “second options” program allowing patients to see virtual specialists to verify care plans provided by their local physicians.

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