Shares of Teladoc Health Inc. (TDOC) jumped over 6% in after-hours trading yesterday on announcing a partnership with Amazon’s (AMZN) Health Benefits Connector segment. Teladoc said eligible customers can now access its diabetes, hypertension, and weight-management programs through Amazon’s connector, allowing easier access and accelerating enrollment growth.
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Here’s More about the Teladoc-Amazon Partnership
Teladoc is a virtual healthcare and telemedicine company. The partnership with e-commerce giant Amazon.com will enable Teladoc to reach a larger set of population that needs help by cutting down on enrollment barriers. Meanwhile, Amazon customers who search the website for related products or services will be given options of eligible benefits from Teladoc’s chronic conditions programs. People unaware of Teladoc’s programs can learn more about them and register if they find it useful.
Teladoc already boasts over a million active enrollees in its chronic condition programs. It utilizes connected devices, data-driven personalization, and expert coaching solutions to help patients with sustainable behavior changes and cardiometabolic health. According to Teladoc, roughly 25% of U.S. adults remain unaware of their available health plan benefits. The integration with Amazon could substantially reduce Teladoc’s customer acquisition cost and boost enrollment growth, aiding in accelerating the healthcare company’s revenues.
Interestingly, Amazon’s Health Benefits Connector segment connects customers to digital health companies that can help them manage conditions such as mental health, prediabetes, diabetes, and high blood pressure. The segment was earlier known as Health Condition Programs. Some of the other partner programs on the website include Hinge Health, Rula, Talkspace, and Omada.
Is TDOC a Good Stock to Buy?
Analysts remain divided on Teladoc stock. On TipRanks, TDOC stock has a Moderate Buy consensus rating based on seven Buys and 12 Hold ratings. Also, the average Teladoc Health price target of $11.22 implies 15.7% upside potential from current levels. Unfortunately, in the past year, TDOC shares have lost nearly 52%.
