MDLIVE Secures $50 Million Crossover Equity Investment From Sixth Street Growth

By Noah Long ● September 14, 2020
  • MDLIVE — one of the three largest and fastest-growing telehealth companies in the U.S. offering virtual healthcare services in all 50 states — announced it has closed a $50 million crossover equity investment from Sixth Street Growth

MDLIVE — one of the three largest and fastest-growing telehealth companies in the U.S. offering virtual healthcare services in all 50 states — announced it has closed a $50 million crossover equity investment from Sixth Street Growth (the growth investing arm of Sixth Street).

The $50 million funding round will be used primarily for the ongoing strategic expansion of MDLIVE’s comprehensive, technology-enabled, and disruptive Virtual Primary Care digital health platform. And the funding will also be used for the launch of supporting products and services that provide the company’s more than 45 million members with convenient access to high quality, cost-effective, and contagion-free Total Care. In a separate deal, MDLIVE secured $25 million in debt expansion from other investors.

MDLIVE has experienced significant and sustained growth, which has been accelerated by the COVID-19 pandemic. After five consecutive years of over 45% visit growth — in the first half of 2020 — MDLIVE virtual visits increased by more than 95% and total bookings increased by over 300%.

Through July, MDLIVE completed nearly 1 million patient visits with large increases reported across all service lines including year-over-year growth of more than 500% for behavioral health, more than 350% for dermatology and over 80% for medical care.

This growth was enabled by a significant increase in the number of active providers, which had totaled over 2,000 clinicians as of July 31, 2020, comprising the MDLIVE provider network. Despite the surge in visit volume, MDLIVE’s wait times for healthcare visits have remained under 20 minutes and averaged only 7.7 minutes in July.

KEY QUOTES:

“The pandemic has accelerated the rapid disruptive transformation of virtual healthcare delivery. With this $50 million crossover investment and the healthcare leadership of Sixth Street, MDLIVE will be able to fulfill its Caring Vision of Cost Containment, Convenient, Contagion-free healthcare delivery. As the demand for MDLIVE’s offerings has reached all-time highs, we remain focused on the expansion of a single, proven technology platform with the flexibility to integrate with devices and the capacity to leverage AI and ingest vast volumes of data necessary for proactive and preemptive care.”

— Charles Jones, MDLIVE’s chairman and chief executive officer

“Virtual care has been a long-term theme for our team, and in an increasingly competitive sector MDLIVE stands out as a scaled and differentiated enterprise technology platform providing high-quality, convenient, and cost-effective care. Their offering accrues to the benefit of all healthcare stakeholders, including patients, providers and payers and we are pleased to be partnering with their team as they continue to grow and successfully meet the increased demand for their services.”

— Michael McGinn, Partner and Co-Head of Sixth Street Growth