Both companies did not disclose the merger terms, but the companies have shared that the merger is expected to close in the first half of 2021.
Grand Rounds works with employers and payers to help its members find virtual care programs. The company uses data and algorithms to match employees with providers and health-related services. More than 6 million workers now use it at Walmart, Home Depot, Salesforce, Travelers, and other firms. The company also launched several new virtual provider offerings to enable access to care during the COVID-19 pandemic and expanded its relationships with existing customers. It currently works with 130 large, self-insured employers.
Doctor On Demand offers complete mind and body services (including preventive care, chronic care, urgent care, and behavioral health care services) across 50 states in the United States through its cloud platform (mobile app and website). The San Francisco-based company provides virtual care services directly to consumers through employers, health plans, and Medicare Part B.
To ramp up its virtual care service globally last year, Doctor On Demand partnered with Humana and launched On Hand, a health plan centered on comprehensive virtual primary care. Walmart is also one of its known partners.
The merger news comes less than a year after Grand Rounds raised a whopping $175 million in funding to fuel clinical navigation and virtual primary care development, and Doctor on Demand scored $75 million in Series C funding.
“We’re building a next-generation virtual care company with a nationwide practice of diverse, dedicated providers and a multidisciplinary care team,” said Hill Ferguson, CEO of Doctor On Demand. “By fully integrating medical and behavioral healthcare with clinical navigation, we’re impacting healthcare where it actually happens—between a patient and their provider – and ensuring that experience is seamless, personalized, and can follow the patient wherever they go.”
A total of 184 digital health companies were acquired in 2020, compared to 169 in 2019, a 9% increase in M&A activity year-over-year, according to Mercom’s Q4 and 2020 Digital Health Funding and M&A Report. Learn More about M&A activity in digital health.