Exclusive: Care enabler 98point6 buys telehealth Bright.md
As it embarks on a $32 million-fueled business pivot, care enabler 98point6 bought telehealth company Bright.md's customers, CEO Jay Burrell tells Axios exclusively.
Details: The deal — 45% in cash and 55% in equity — gives 98point6 Bright.md's 17 customers, per Burrell.
- 98point6 is also taking on half a dozen former Bright.md staff in commercial and sales.
- It's 98point6's first acquisition as it transitions from care provider to tech licensor.
What's next: Burrell foresees more acquisitions in the near term and raising another round of capital by Q3.
- "I'm preparing to put a little fuel in the commercial tank now that we have a portfolio of offerings," he says.
- Burrell says the company plans to expand from health systems to private provider groups within roughly the next quarter.
Of note: 98point6 currently has 25 licensees signed up for its services, including MultiCare, Baptist Health, and UAB Medicine.
What they're saying: The strategy behind the current acquisition is creating "a single user interface for the patient and for the provider," says Burrell.
Be smart: A 2023 Rock Health survey suggested telehealth recently reached 80% adoption, boosting it into first place as the preferred channel for minor illness and prescriptions.
- Compared with real-time video, audio-only and asynchronous forms of telemedicine were the most-used means of attaining virtual care, the survey found.
Catch up fast: When Seattle-based 98point6 last April announced its strategic shift from provider to enabler, Burrell foreshadowed the company's plan to use acquisitions to add capabilities like remote patient monitoring.
- He hopes future buys enable the company to take on additional customers and technologies.
How it works: 98point6 Technologies charges health systems either a flat software licensing fee, a fee per transaction, or a mix of both.
- Services include automated case assignment, EHR data integration, patient-clinician chat and video, automated care plans, clinical documentation and medical recommendation letters.
State of play: Compared with telehealth providers, telehealth enablement startups promise simplicity over sparkle, drawing continued investor interest. Relevant deals from last spring alone include: