Teladoc Health (NYSE: TDOC) is taking significant steps to expand its mental health services within its integrated care business. While the company has historically focused its behavioral health efforts on BetterHelp, its direct-to-consumer platform, leadership is now looking to strengthen its business-to-business (B2B) mental health offerings. By integrating mental health support with chronic care management, Teladoc aims to enhance clinical outcomes and improve accessibility for patients receiving care through employer-sponsored and insurance-backed plans.
At the recent JP Morgan conference, Teladoc’s Chief Financial Officer, Mala Murthy, highlighted the opportunity for growth in the company’s B2B mental health segment. Currently, this segment generates approximately $150 million in revenue, but there is significant potential to expand. “I think there is room for us to grow that business on the B2B side,” Murthy stated. With a growing demand for mental health support among patients using Teladoc’s integrated mental health care services, the company sees an opportunity to strengthen its presence in this market.
A Growing Focus on Integrated Mental Health Services
Teladoc’s push into integrated mental health services aligns with a broader trend of recognizing mental health as a crucial component of overall well-being. Studies continue to show that addressing mental health in tandem with chronic conditions leads to better patient outcomes and reduced healthcare costs. This approach is already proving effective within Teladoc’s existing framework—roughly 62% of its general medical patients utilize its B2B integrated mental health care services.
Teladoc’s CEO, Chuck Divita, emphasized the company’s commitment to expanding these services, describing mental health as a critical investment for the future. “We have a very skilled mental health offering. We provide digital content, conduct a million visits a year inside integrated mental health care, and embed it in our chronic condition management program,” Divita said at the JP Morgan conference.
By embedding mental health care within chronic disease management, Teladoc is taking a whole-person approach to healthcare. This model recognizes that conditions such as diabetes, hypertension, and cardiovascular disease are often linked to mental health challenges like stress, anxiety, and depression. Addressing both physical and mental health together through integrated mental health care allows for more comprehensive treatment and better patient adherence to medical recommendations.
As part of its long-term strategy, Teladoc plans to invest further in technology and digital content to enhance its integrated mental health care offerings. This includes refining the user experience within its platform, improving the accessibility of mental health resources, and expanding its network of licensed professionals. The company believes that these enhancements will make it easier for patients to receive high-quality mental health support in a convenient and efficient manner.
BetterHelp’s Evolution: Expanding Access and International Growth
While Teladoc is strengthening its integrated mental health care services, BetterHelp remains a core component of its behavioral health strategy. However, the platform faced challenges in 2024, prompting the company to explore new ways to make the service more accessible and financially feasible for users.
A key focus for BetterHelp moving forward is ensuring that more people can utilize their employer-sponsored or insurance-backed benefits to access therapy. “We have a lot of people that come to BetterHelp and want to use it, but when it comes to affordability and some other challenges, they want to activate their benefits,” Divita explained. To address this, Teladoc is working to expand partnerships with employers, employee assistance programs, and health insurance providers, allowing individuals to access BetterHelp through their benefits plans.
Beyond affordability, Teladoc is also looking at global expansion for BetterHelp. While the platform has already established itself in English-speaking markets like the U.K., Canada, and Australia, the next phase of growth involves expanding into non-English-speaking regions.
“Until now, our international business was largely in English-speaking countries,” Murthy noted. “What we are now planning is expanding it, and importantly, as we expand into other countries, actually offering a localized version of the product. This would mean a local product experience. This would mean local therapists.”
By tailoring BetterHelp to different cultural and linguistic needs, Teladoc aims to provide high-quality mental health care on a global scale. This move could significantly increase BetterHelp’s user base and position the platform as a leading provider of online therapy worldwide.
The Future of Teladoc’s Mental Health Strategy
With its dual focus on B2B integrated mental health care services and BetterHelp’s consumer-driven approach, Teladoc is positioning itself as a major player in digital behavioral health. The company’s strategy reflects a growing recognition that mental health is inseparable from overall well-being and that addressing it within the broader healthcare system through integrated mental health care can lead to better outcomes.
As Teladoc continues to invest in integrated mental health care services, its ability to scale offerings through employer partnerships, health plans, and international markets will be crucial to its long-term success. By embedding mental health support within chronic care management and expanding access to digital therapy, Teladoc is working to make mental health care more integrated, accessible, and effective for millions of people worldwide.
