Accolade acquires virtual primary care platform PlushCare - Mobihealth News

Public health navigation company Accolade is looking to the telemedicine space with the acquisition of PlushCare, a primary care-focused virtual care company.

As part of the deal, Accolade will incorporate California-based PlushCare's platform, which is able to connect consumers in all 50 U.S. states to an online video visit with a doctor.

The startup treats urgent care medical issues, ongoing medical issues, primary care and mental healthcare, and also offers online therapy. Patients are able to book an appointment time on the app, then use the app to talk to one of the company's doctors. If necessary, doctors can send a prescription to the pharmacy of a patient's choice.

Meanwhile, Accolade's platform is focused on boosting health-plan and employer-benefits engagement. Specifically, the company aims to help members understand their care options. The company also has a population health offering that includes personalized clinical-team support and insights generation.

WHY IT MATTERS

According to Accolade's CMO Dr. Shantanu Nundy, the company aims to supplement in-person primary care visits with PlushCare's virtual care. It will also further Accolade's foothold in the continuous care space.  

"It all makes perfect sense. The only other party on the healthcare landscape – outside of Accolade's Frontline Care team – that aspires to a longitudinal relationship with the consumer is the PCP," Accolade CEO Rajeev Singh said in a statement. "And the PCP's capacity to treat patients, order care and prescribe is the last mile of many healthcare journeys.

"In our own ways, and on our own separate paths, Accolade's Frontline Care team and PCPs were both playing a role as the central point or quarterback of a consumer's healthcare journey."

THE LARGER TREND

This isn't the first time that Accolade and PlushCare have teamed up. In March of 2020, the two teamed up to offer virtual primary care that specifically focused on COVID-19 questions, care support, assessment and connection to local testing. The collaboration was open to Accolade members specifically.

Last year Accolade went public on the Nasdaq Global Select Market. Today it is trading for approximately $48 per share. This isn't the company's first M&A since going public. In January, Accolade purchased second opinions company 2nd.MD for a cool $460 million. Before going public the company purchased MD Insider for $217 million.

Meanwhile, PlushCare was seeking investor dollars. In June of 2020, the company scored $23 million in a round led by Transformation Capital to double its staff and fuel growth. This funding brought the company's total raise to $31 million.