Long-time Teladoc leader departs as virtual care provider struggles with post-COVID tumble

A person types on a laptop keyboard, Monday, June 19, 2017, in North Andover, Mass. The leader of struggling telemedicine provider Teladoc Health has left, effective immediately, the company announced Friday, April 5, 2024. Teladoc gave no reason for the departure of CEO Jason Gorevic. (AP Photo/Elise Amendola, File)

The leader of struggling telemedicine provider Teladoc Health has left effective immediately, the company announced Friday.

Teladoc gave no reason for the departure of CEO Jason Gorevic. The 52-year-old executive had led the company and served as a director since 2009.

Teladoc said Chief Financial Officer Mala Murthy would serve as acting CEO while the company looks for a permanent replacement.

Teladoc lost $220 million last year, and its share price has plunged more than 90% since topping $300 during the height of the COVID-19 pandemic in early 2021.

Teladoc shares soared initially after COVID hit as doctor offices shut down and telemedicine exploded in popularity.

But the company hasn’t been able to sustain that momentum as competition increased and interest in virtual care cooled from its pandemic high.

Teladoc has been turning its focus from acute care visits for things like fevers or strep threat to managing patient health. That includes providing help for mental health care, weight loss and other chronic conditions.

Teladoc spent more than $18 billion in 2020 to stoke that approach with the acquisition of technology company Livongo Health.

BTIG analyst David Larsen said in a research note that the leadership change was not surprising, given the “very significant slow-down” the company has faced the past few years.

Jefferies analyst Glen Santangelo said in a separate note that Gorevic’s departure could be viewed positively, as a change in the company’s strategic direction would be welcomed.

Shares of Purchase, New York-based Teladoc Health Inc. climbed 14 cents to $14.39 in midday trading.