Virtual care provider Doctor On Demand secured $75 million in a Series D round of funding Wednesday, led by General Atlantic and undisclosed existing investors.
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The San Francisco-based company provides on-demand and scheduled visits with U.S.-licensed health care providers, in both medical and behavioral health, and said it currently covers more than 98 million lives.
Founded in 2012 by Adam Jackson, as well as Phil McGraw, also known as Dr. Phil, and his son, Jay McGraw, this new investment gives the company total funding of approximately $240 million, according to Crunchbase data. Doctor on Demand has raised new venture-backed funding nearly every year since its inception, previously raising a $74 million Series C round back in April 2018.
“We believe virtual care has reached an inflection point, with significantly increased adoption levels, and that Doctor On Demand is well positioned to capture the sustained growth of the broader industry,” said Robbert Vorhoff, managing director and global head of health care at General Atlantic, in a written statement.
Doctor On Demand said it will use the new capital to invest in growth and expansion of its virtual care model. The company says it saw an increase in utilization in urgent care and behavioral health services during the COVID-19 pandemic.
Hill Ferguson, CEO of Doctor On Demand, said in a written statement that the pandemic unveiled certain benefits of virtual care, such as being able to reach all patient populations and proving quality of care was similar to in-person visits.
In the first half of the year, the company more than doubled the number of covered lives and had its 3 millionth virtual visit. It also rolled out services to 33 million Medicare Part B beneficiaries across all 50 states just weeks after the Centers for Medicare and Medicaid Services expanded coverage to allow for telemedicine reimbursement.
Telemedicine is not new, but adoption was slow prior to COVID-19, as we have reported recently. In addition, Rock Health reported this week that there were record investments in virtual care and behavioral health during the first half of the year—more than $5.4 billion.
Some of the investments on our radar over the same period have included Big Health raising $39 million in Series B financing for cognitive behavioral therapy, Hinge Health, a digital physical therapy company focused on chronic musculoskeletal conditions, closing on a $90 million Series C round of funding and K Health, a primary care consultant powered by artificial intelligence, raised a $48 million Series C round.
Illustration: Dom Guzman