Teladoc Health has named a new CEO, months after the virtual care company’s long-term chief executive abruptly departed following flagging financial performance at the telehealth vendor.
Charles “Chuck” Divita III will take on the role effective immediately, the company said Monday.
His appointment comes about two months after Jason Gorevic, the former CEO who held the position since 2009, left the company.
“We are confident we have selected an innovative and visionary leader capable of delivering growth at scale, value for our clients and positive relationships with all our partners and colleagues,” David Snow Jr., chairman of Teladoc’s board of directors, said in a statement.
Divita joins the virtual care company from GuideWell, a healthcare insurance and services company that includes Florida Blue, where he served as executive vice president of commercial markets and previously chief financial officer. He also worked as CFO at FPIC Insurance Group, which focuses on medical professional liability.
Experience at a health plan could be helpful for Divita, particularly since he has previously worked with the virtual care firm as a partner, according to Leerink analysts. But his new position at Teladoc comes as the telehealth company faces big questions about its next strategic moves and its stock price has “pulled back meaningfully,” they wrote in a Monday note.
Teladoc’s revenue soared during the COVID-19 pandemic as utilization of telehealth increased exponentially. But it struggled to build upon its significant growth as the public health emergency waned, racking up huge losses in 2022 and launching an “operational review” to boost its bottom line late last year.
During the first quarter, Teladoc beat analyst expectations on revenue of $646 million and a net loss of $82 million, boosted by increased revenue in its business-to-business integrated care unit.
But its direct-to-consumer mental health segment BetterHelp — once a significant moneymaker for the telehealth firm — lagged, with revenue declining 4% year over year.
