Virtual care giant Teladoc Health tapped a new CEO two months after longtime leader Jason Gorevic stepped away.
The company hired Charles “Chuck” Divita III as its new CEO, according to an announcement this morning. Concurrent with his role as CEO, Divita also joined Teladoc Health’s board of directors.
Divita joins Teladoc Health from GuideWell, a health solutions organization and parent company of Florida Blue, Florida's Blue Cross Blue Shield plan. At GuideWell, Divita served as executive vice president of commercial markets.
GuideWell serves 38.5 million people across 50 states, Puerto Rico and the U.S. Virgin Islands, including more than 6 million individuals in Florida.
In a major corporate shake-up, Gorevic stepped down as CEO in early April after leading the company for 15 years. The company's chief financial officer, Mala Murthy, was tapped to serve as acting CEO while the board of directors searched for Gorevic's permanent successor.
According to Teladoc, in his role at GuideWell, Divita was responsible for $23 billion in revenue and had accountability for Florida Blue’s individual consumer, insured group and large/national account self-funded businesses as well as oversight of various supporting functions. He also served as GuideWell’s chief financial officer for several years.
Divita brings a "proven track record of growth, innovation and advancing new models across a wide range of stakeholders in healthcare," according to a Teladoc press release.
Teladoc declined to offer interviews with Divita at this time.
“In today’s healthcare landscape, Chuck is the perfect example of experience, respect and competence among executives, and we are pleased to welcome him to Teladoc Health,” said David B. Snow Jr., chairman of the Teladoc Health board of directors, in a statement. “We are confident we have selected an innovative and visionary leader capable of delivering growth at scale, value for our clients and positive relationships with all our partners and colleagues. His combination of large healthcare company and public company experience make him a tremendous asset to Teladoc Health."
Divita said Teladoc Health has been successful at securing a leading position in the marketplace.
"I look forward to working closely with my new colleagues to build upon this foundation, advance key strategic priorities and ensure the company is positioned for long-term, sustainable success. This will provide new opportunities to positively impact healthcare and the health and wellbeing of the people we serve," he said in a statement.
Divita takes the reins at Teladoc as the company faces growing competition in the virtual care market and financial pressures as it aims to boost its bottom line.
The telehealth giant, which has been in operation for 20 years, has struggled in the stock market and is facing headwinds as the virtual care market has become crowded with digital health players. Shares of Teladoc dropped 22% in February as the company missed fourth-quarter revenue estimates and offered a downbeat forecast for the rest of the year.
Telaodoc's 2023 revenue grew 8% to $2.6 billion from $2.4 billion a year ago. The company's integrated care segment brought in revenue of $1.5 billion, up 7% from a year ago, and BetterHelp, its direct-to-consumer behavioral health offering, saw revenue jump 11% to reach $1.1 billion in 2023.
The company now touts 90 million users.
Teladoc reported a net loss of $220 million in 2023, following 2022's historic loss of $13.7 billion, mostly from a write-off related to the plummeting value of its Livongo acquisition. In 2020, Teladoc shelled out $18.5 billion for the digital chronic condition management company, a record in digital health.