- Telemedicine provider Teladoc announced Tuesday that it confidentially submitted a draft registration statement with the SEC to launch an initial public offering of its common stock. The company has yet to determine the number of shares to be sold and the price range.
- Teladoc has 10 million registered users nationwide, including 2.4 million in its home state of Texas, according to The Dallas Business Journal.
- On Wednesday, the provider filed an antitrust suit accusing the the Texas Medical Board of violating the Sherman Act and Commerce Clause, attempting to block the Board's new requirement that physicians see patients in person before providing telehealth care.
As of June 3, one of the most restrictive telemedicine laws in the country will go into effect in Texas, marking the end of a four-year battle between the medical board and Teladoc. The new rule prohibits physicians from answering questions via text message or e-mail until after a face-to-face meeting with the patient; it also outlaws evaluations or consultations via telephone until after the physician and patient meet face-to-face.
Whatever the outcome of the suit, the Texas Medical Board's recent decision to restrict telemedicine use in the state obviously hasn't slowed Teladoc's push for expansion—as Dr. Bijan Salehizadeh, co-founder of healthcare investment firm NaviMed Capital, told Modern Healthcare: "They obviously feel they can get it done despite the Texas state board issue."
"I think it's a solid business with strong leadership and supported by market tailwinds," McKesson's Tom Rodgers told Modern Healthcare of the launch. "Smart move to get out now, and I would expect a warm reception from Wall Street."
If the goes well, expect a few more VC-funded IT companies to go the same direction quickly.