On Friday, Teladoc Health (NYSE:TDOC) announced in a press release the unexpected departure of its long-time CEO Jason Gorevic, effective immediately.
In the interim, the board of directors has named Mala Murthy, the chief financial officer, as Gorevic's temporary replacement, while also engaging an executive search firm to find a permanent CEO.
“We thank Jason for his many achievements and contributions during the 15 years he led Teladoc Health. We wish him success in his future endeavors,” David Snow Jr., Teladoc board chair said in a statement.
Gorevic, who took the helm of Teladoc in 2009, led the company through the challenges of the COVID-19 pandemic, navigating the shift towards virtual healthcare delivery.
“We suspect the Board gave Gorevic a much longer leash than most CEOs would have been accorded given the long relationship between CEO Gorevic and Board Chair David Snow, which spans more than 20 years back to their managed care days at Empire Blue Cross,” said Deutsche Bank analysts in their comments on Gorevic’s exit.
“We believe the company’s inability to capitalize on opportunities in chronic care and the slowdown in behavioral could have been key points of dissonance between the CEO and the Board,” they added.
Going forward, Deutsche expects a shift in the company's messaging towards a greater emphasis on profitability, a change that has already begun to emerge in recent quarters.
Reflecting on the same development, BTIG analysts said Gorevic’s departure “is not entirely surprising,” given the significant slowdown TDOC has faced in recent years.
They believe that the telehealth market has undergone significant changes recently.
In particular, the COVID-19 pandemic catalyzed tremendous growth in telehealth as patients and physicians sought safe methods to access medical care. However, the landscape has since evolved.
Health plans and employers now prioritize results, “which means the bar has been raised in our view for overall performance,” BTIG analysts noted.