Accolade to buy telehealth startup 2nd.MD for $460M

Health concierge startup Accolade announced this week that it will buy the telemedicine vendor 2nd.MD for about $460 million.

According to a Thursday press announcement, Accolade intends to strengthen its ability to provide users second opinions through the acquisition of Innovation Specialists, the Houston-based parent company of 2nd.MD. The company will also continue to offer 2nd.MD’s service on a stand-alone basis.

“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 Rajeev Singh, chief executive officer at Accolade, in a statement.

WHY IT MATTERS

Seattle-based Accolade acts as an on-demand healthcare concierge tool, allowing employers to offer employees and their families personalized health and benefits solutions. 

2nd.MD, meanwhile, works to connect patients with board-certified experts around the country for a medical consultation via video call or phone within three to five days. Currently, the company says it serves more than 300 employer-customers and more than 7 million employee-members, and that employer-customers save an average of $5,000 per consultation and $27,000 per consultation when a surgery is