Teladoc Finds New CEO at Guidewell

Teladoc Health Inc. directors have tapped a veteran Guidewell executive to be the new CEO of the Purchase, New York-based virtual care giant.

Chuck Divita took the helm of Teladoc on June 10, when he also joined the board of directors of the company that employs about 5,600 people and posted revenue of $2.6 billion last year. Divita took the reins from interim CEO Mala Murthy, who replaced former boss Jason Gorevic in April and will remain Teladoc’s CFO.

Divita, 55, comes to Teladoc from GuideWell, the holding company for Blue Cross Blue Shield insurance companies in Florida and Puerto Rico, as well as other companies that together serve more than 38 million people worldwide. country. He joined Guidewell in late 2011 as chief accounting officer of Florida Blue and in early 2014 was named CFO of the holding company. Four and a half years later, he was promoted to executive vice president of the company’s commercial markets business, which produces about $23 billion in revenue annually.

Prior to working at Guidewell, Divita rose through the executive ranks of publicly traded property and casualty insurer FPIC Insurance Group Inc., culminating in being its chief financial officer from 2006 to 2011.

“We are confident that we have selected an innovative and visionary leader capable of generating growth at scale, value for our customers, and positive relationships with all of our partners and colleagues,” Teladoc Chairman David Snow Jr. said in a statement. . “His combination of experience from him at a large healthcare company and a public company makes him a tremendous asset.”

Divita, who is paid a salary of $800,000 and received stock incentives with a target value of $15 million, will look to get Teladoc back on track in terms of growth and profitability. The company lost nearly $82 million in the first quarter (and $220 million in 2023) as marketing costs rose, chronic care efforts failed to produce promised results, and behavioral services growth slowed. slowed down. Murthy said in late April that she was looking to international markets for a boost for behavioral business BetterHelp.

“Teladoc Health has managed to secure a leading position in the market,” Divita said. “I look forward to working closely with my new colleagues to build on this foundation, advance key strategic priorities and ensure the company is positioned for long-term sustainable success.”

Investor reaction to Divita’s appointment has been decidedly dull: around noon on June 13, Teladoc stock (Ticker: TDOC) were trading at $9.93, nearly 7% below where they closed the session before the directors announced their news. The company’s market capitalization is now about $1.7 billion, up from $2.4 billion when Gorevic exited.

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