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After two months of searching, Teladoc Health has hired Chuck Divita to be its new CEO as the telehealth giant’s stock hit its lowest point in eight years.
Chuck DivitaDivita, a former health insurance executive, is taking the helm after long-time CEO Jason Gorevic stepped down in April while the company struggled to sustain the success it had during the Covid-19 pandemic.
Teladoc’s stock $TDOC dropped to around $10.50 per share after the market opened on Monday morning, the lowest price since 2016. The stock was trading at around $14 per share when Gorevic stepped down.
Divita previously headed the commercial markets business at GuideWell, the parent company of health insurer Florida Blue. Before that, he was Guidewell’s CFO.
Divita’s experience at large, public healthcare companies makes him a “tremendous asset,” Teladoc board chair David Snow said in a release on Monday.
Analysts were hopeful about the appointment. Divita could help Teladoc sell to more health plans, providing balance to its consumer-facing therapy business BetterHelp, Evercore analysts said in an investor note. Membership at BetterHelp fell 11% from a peak in 2023 in the most recent quarterly earnings as consumers seem to be turning away from virtual care options.
Analysts with Leerink Partners said in a note that while Divita’s health plan experience “certainly seems like a relevant starting point,” it’s not clear which strategic path Teladoc will pursue going forward.