Teladoc Health, the leading virtual care provider, has named Charles “Chuck” Divita III as its new CEO. Divita, a seasoned healthcare executive, takes the helm following the departure of long-time CEO Jason Gorevic earlier this year.
“We are confident we have selected an innovative and visionary leader capable of delivering growth at scale, value for our clients and positive relationships with all our partners and colleagues,” stated David Snow Jr., chairman of Teladoc’s board of directors.
Divita joins Teladoc from GuideWell, a prominent healthcare holding company encompassing Florida Blue, where he served as executive vice president of commercial markets. He also held the role of chief financial officer at GuideWell and previously at FPIC Insurance Group, specializing in medical professional liability.
Analysts point to Divita’s experience with health plans as potentially advantageous, given his previous collaborations with Teladoc. However, they acknowledge the challenges Teladoc faces, including navigating future strategies and a declining stock price.
Teladoc’s rise coincided with the COVID-19 pandemic’s surge in telehealth utilization. However, the company encountered difficulties sustaining its momentum as the pandemic waned. Losses mounted in 2022, prompting an “operational review” aimed at improving profitability.
Despite these challenges, Teladoc exceeded analyst expectations in the first quarter of 2024. Revenue reached $646 million, with the business-to-business integrated care unit driving growth. However, their direct-to-consumer mental health segment, BetterHelp, saw a 4% year-over-year revenue decline.
Divita’s appointment signals a new chapter for Teladoc. His background in healthcare finance and experience working with Teladoc as a partner position him well to navigate the company’s future. Investors and analysts will be keenly watching Teladoc’s strategic direction under Divita’s leadership, particularly regarding profitability concerns and the future of BetterHelp.
(Hero image credit: Teladoc Health)
