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Why Shares of Teladoc Are Up More Than 3% Today

By Jason Hawthorne – Sep 9, 2021 at 12:53PM

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The company keeps making its virtual care offering more enticing to health systems.

What happened

Shares of Teladoc Health (TDOC -3.40%) are up more than 3% as of 12:31 p.m. EDT today after the company announced a partnership with Proximie, a maker of surgical collaboration software.

So what

Proximie's software will be integrated into Teladoc's Solo platform. The move represents another brick in Teladoc's road to an end-to-end virtual healthcare experience. It will also make the platform more valuable to hospitals and healthcare systems -- a segment that has been a focus for the company.

An adult holds an infant while participating in a virtual visit with a physician.

Image source: Getty Images.

The deal bolsters the value of its 2020 acquisition of InTouch Health -- a company focusing on virtual care in more complex medical settings. Teladoc also partnered with Microsoft earlier this year to get the Solo platform into the tech behemoth's Teams collaboration software.

Now what

Teladoc continues to prove it is willing to reach outside of its own business to craft solutions that appeal to hospital systems. As the government and insurers move toward a value-based care reimbursement model -- where providers' profits are dependent on the combination of outcomes and cost -- services that help deliver on those goals are more in demand.

Proximie's software will allow multiple stakeholders to collaborate in operating and diagnostic rooms. The remote mentoring, proctoring, and support helps hospital systems ensure patients are receiving the highest-quality care. As large systems make decisions about what virtual care applications to bring in, the deal gives Teladoc another way to differentiate its offering.

Teresa Kersten, an employee of LinkedIn, a Microsoft subsidiary, is a member of The Motley Fool's board of directors. Jason Hawthorne owns shares of Teladoc Health. The Motley Fool owns shares of and recommends Microsoft and Teladoc Health. The Motley Fool has a disclosure policy.

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