The board of Teladoc Health Inc. (NYSE: TDOC) has named Charles “Chuck” Divita III as its new CEO, effective immediately. He will also serve on the telehealth company’s board of directors.
Divita succeeds longtime CEO Jason Gorevic as the company tries to reverse a years-long skid in share prices and losses and reposition its virtual mental health division, BetterHelp, as the largest direct-to-consumer provider in the U.S.
Gorevick stepped away in April. Teladoc CFO Mala Murthy took on the CEO role on an interim basis. Divita comes to Teladoc Health from the role of executive vice president of commercial markets for the not-for-profit mutual holding company GuideWell. That organization encompasses several health care and health insurance entities, including Florida Blue, Triple-S Management and Lucet, to name a few. He was also CFO for Guidewell for several years.
“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,” David Snow Jr., chairman of the Teladoc Health board of directors, said in a news release. “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.”
Teladoc has two segments: Teladoc Health Integrated Care and BetterHelp. The former generated $377 million, while the former generated $269 million in the first quarter. BetterHelp’s revenue shrank by about 4%, while gains in the integrated care segment led to a 3% increase in revenue overall.
The company is undergoing a course correction to address continued losses. Teladoc Health’s stock price is down 57% year-over-year. The company has yet to post positive annual net income since its 2015 IPO, according to an analysis by macrotrends.com. In part, Teladoc is seeking to lessen spending and improve productivity of marketing spend and invest in foreign, English-speaking markets.
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