SYDNEY, AUSTRALIA: Doctor Care Anywhere Group announced the acquisition of Australian based GP2U Telehealth Pty Ltd in an AUD 11 million deal.
GP2U Telehealth provides virtual GP services under the brand GP2U and tele-mental health services under the brand Psych2U, with the latter representing 78% of GP2U Telehealth’s total revenue.
The acquisition represents Doctor Care Anywhere’s first entry into the Australian telehealth market, following its successful IPO in December 2020.
Doctor Care Anywhere sees significant opportunities to grow national mental health and GP telehealth services in Australia and will focus on the ever-growing mental health burden in Australia, particularly in rural and remote areas.
Approximately half of all adults in Australia will experience mental health concerns at some point with an estimated cost to the economy of up to A$220 billion each year.
In response to the mental health consequences of the COVID-19 pandemic, the Australian government has increased spending on mental health to A$6.3 billion for 2021-223, including a significant expansion of telehealth services to respond to high levels of mental distress in communities across the country.
Dr Bayju Thakar, CEO of Doctor Care Anywhere, said: “This acquisition represents another important milestone for Doctor Care Anywhere; giving us a platform on which to build our presence in the Australian market and further expand our international business.
It will give GP2U the support it needs to make a real difference in helping patients, particularly those in rural and remote regions, access high quality virtual GP care and, in particular, support existing GP practices in the provision of tele-mental health. Both service lines are ideally suited to the innovative and responsive applications provided by a telehealth approach, especially where the geographical distance between clinician and patient is prohibitive.
Building on our significant organic growth, we believe that this is the right time to be expanding our telehealth activity internationally to serve and care for more patients through the strategic acquisition of GP2U Telehealth and we are very excited to be entering the Australian market.”
Sarah Richardson, General Manager GP2U Telehealth Pty Ltd, said: “GP2U Telehealth has had a positive impact on thousands of patient lives across Australia thanks to the work of our experienced and dedicated team of clinicians. We are proud that our virtual GP and tele-mental health services have transformed the health journeys of so many people, enabling access to high quality care pathways, especially for those living in remote and rural areas.
I am excited to join the Doctor Care Anywhere family. Their experience in delivering high quality digital health services and the opportunity for technology synergies between our companies will help us to achieve our growth plans, meet the current high demand for services and allow more patients to benefit from high quality healthcare, wherever and whenever they need it most.”
Sheena Jack, CEO of HCF said: “Doctor Care Anywhere’s acquisition of GP2U Telehealth Pty Ltd, is a welcome investment in the Australian telehealth market. Demand for virtual GP and tele-mental health services from our membership base has increased substantially in recent years and our strong partnership with the GP2U Telehealth team has allowed us, as the largest non-for-profit health insurer, to offer high quality, telehealth care to our members across Australia. We look forward to working closely with Doctor Care Anywhere as they support the team to deliver their next phase of growth.”
