Accolade to Acquire 2nd.MD
Accolade, a company that provides personalized solutions that help people better understand, navigate, and use the healthcare system and their workplace benefits, has signed a definitive agreement to acquire Innovation Specialists, LLC (d/b/a 2nd.MD), a leading expert medical opinion and decision support company.
Healthcare utilization is expected to rise significantly in 2021 due to the effects of the COVID-19 pandemic. With that in mind, the integration of 2nd.MD with Accolade’s health and benefit solutions and clinical service offerings will make the healthcare experience simpler for employees and increase return on investment for employers by ensuring their employees are receiving appropriate care and reducing unnecessary treatment in high-cost scenarios. Accolade will continue to offer 2nd.MD ’s service on a stand-alone basis as well.
“Bringing 2nd.MD’s world-class Care Team and digital approach with expert medical consultation into Accolade, and continuing to offer it on a stand-alone basis, will have an immediate and measurable impact for our customers, their employees, and the health plans we work with,” said Accolade CEO Rajeev Singh. “Both companies have built deep relationships with employers and health plans by helping employees navigate the increasingly complex and inconsistent healthcare system. With the addition of 2nd.MD , we’ll nearly double our total addressable market while providing the most comprehensive, integrated healthcare navigation experience available.”
2nd.MD connects employees with board-certified national experts across the country for medical consultations by real-time video call or by phone within three to five days. On average, 2nd.MD employer-customers save more than $5,000 per consultation. The company’s care team consists of highly specialized nurses and medical record retrieval specialists who coordinate all the details to eliminate friction in the process and ensure employees can remain focused on their health. The 2nd.MD service covers conditions across all adult and pediatric specialties and subspecialties.
The transaction is expected to close by the end of February 2021, subject to customary closing conditions. The purchase price of up to $460 million will consist of $230 million in cash, $130 million in Accolade common stock, and up to $100 million of Accolade common stock payable upon the achievement of defined revenue milestones following the closing.
Read the full press release here.