Accolade may buy telemedicine start-up 2nd.MD for $460 mn

Accolade, a health care technology company, is buying telemedicine start-up 2nd.MD for about $460 million, CNBC reported.
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The move is said to nearly double Accolade’s addressable market to about $46 billion by giving the company a provider of expert medical opinions from a network of U.S. doctors. Founded in 2011, 2nd.MD automates the process of getting second opinions so they happen within days over video or telephone, rather than taking weeks to schedule as is more typical.

“2nd.MD will take your medical records and provide them to a network of physicians who specialize in those disease categories, and those physicians will do a video consultation to give you another opinion about what the right next step is,” Accolade CEO Raj Singh said this week in a Zoom interview.

The start-up has 300 corporate customers with more than seven million employees and about $35 million in revenue last year. Singh said that he plans on incorporating 2nd.MD into his company’s products, as well as offering it on a standalone basis.

Digital health start-ups around the world attracted an estimated $24.1 billion in venture capital funding in 2020, 29 percent higher than the previous year and hitting a record in the third quarter, according to CB Insights.

Accolade, which went public in July, counts CNBC parent Comcast as both a major customer and an investor.