Teladoc Health announced this morning the immediate departure of CEO Jason Gorevic. The release from Teladoc hit the wires at 6:30am Eastern Daylight Time. Chief financial officer Mala Murthy has taken the CEO position on an interim basis while the board of directors conducts an executive search for a permanent replacement. She will retain CFO responsibilities during the search.
From LinkedIn: Ms. Murthy has been with Teladoc since June of 2019, joining as CFO from seven years at American Express as CFO of their Global Commercial Services segment. Previously she was with Pepsico.
The industry for some time anticipated Mr. Gorevic’s departure after 15 years due to Teladoc’s lackluster 2023 and a dismal forecast for 2024. Teladoc never really recovered from a disastrous 2020 $18.5 billion acquisition of Livongo engineered by Mr. Gorevic with Glen Tullman, followed by its 2022 $6.6 billion writedown. The share price never really recovered, reaching a high over $293 in February 2021 but eroding quickly after that. It currently languishes at below $15, losing 34% YTD and 95% since 2021. The crash in Teladoc’s value as the pandemic closures of practices resolved was replicated by other telehealth companies such as Amwell, MDLIVE, Included, and most others. But the picture didn’t seem to be clearing. Telemental health provider BetterHelp, which last year was touted as the company’s salvation, wasn’t, falling flat in 2023 revenue. Teladoc’s 2024 forecast was downbeat as well [TTA 22 Feb], but management in the announcement reinforced that they are standing pat on their Q1 and full year 2024 financial guidance.
The usual anodyne statements followed. “We thank Jason for his many achievements and contributions during the 15 years he led Teladoc Health. We wish him success in his future endeavors,” said David B. Snow, Jr., Chairman of the Teladoc Health Board of Directors. To CNBC, Mr. Gorevic said, “I am proud of the impact we’ve made on the healthcare system, and our many accomplishments in advancing innovation and transforming virtual health care from an unrealized promise into a valued reality for our 90 million members.”
The impression left by Teladoc from press and related news articles, as well as by analysts, was this move was sudden. The precipitating action to remove Mr. Gorevic is yet to be revealed. The release was timed for the usual pro forma Friday, but the morning timing was designed for the markets to lift the stock in week-end trading. Teladoc’s financials have been hammered for the past two years, but no differently than its now extensive competition, with health systems and practices now incorporating telehealth and virtual health software. Another confirmation that this was a sudden move: a quick view of the Teladoc website at 12.30 ET was that Mr. Gorevic was still listed as the CEO; this changed with a second view at 1pm. To be continued… FierceHealthcare, Axios, HealthcareDive
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