The Teladoc and Livongo Merger

By Kevin Schulman, Adesh Surendra Jain, Pieter Naude Bremer Du Plessis
2021 | Case No. SM349 | Length 26 pgs.

Teladoc and Livongo had ridden the tailwinds of the COVID-19 pandemic—and a merger between the two would offer a “one-stop-shop” for technology-driven care for patients with acute, chronic, and specialty care needs. The case study describes the regulatory history of telemedicine in the United States, and the licensing barriers that had inhibited virtual doctors’ visits—until the 2020 COVID-19 pandemic forced urgent changes to the ways doctors and patients interacted.

Would the Teladoc business model—and the proposed merger with Livongo—help establish the company firmly in the increasingly competitive telemedicine field? Analysts projected the telehealth space would grow at a compounded annual growth rate of more than 20 percent over the coming years. Livongo, with 147 million members, offered software and personalized health coaching to address diabetes, hypertension, behavioral health, and weight management. Did this acquisition make sense for Teladoc?

Learning Objective

This case is designed to provide students with a thorough understanding of longstanding regulatory barriers within the telemedicine sector, and an overview of how rapid regulatory changes during the pandemic opened up the sector, but also brought in new competitors. Students will evaluate the Teladoc sales model and company’s position against the competition, and also determine how the Livongo acquisition would affect Teladoc’s financial performance.
This material is available for download by current Stanford GSB students, faculty, and staff, as well as Stanford University alumni. For inquires, contact the Case Writing Officeopen in new window. Download