Zocdoc’s Evolution: From Appointment Scheduling to a Comprehensive Telehealth Platform
Zocdoc, which had built its business as an online scheduling platform for doctors, quickly pivoted at the beginning of the pandemic to offer telehealth visits. The New York-based company recently raised $150 million from Francisco Partners to support this shift. Currently, the company claims it now has 10,000 providers offering virtual visits on its platform.
Strategic Pivot During the Pandemic
At the beginning of the pandemic, appointment scheduling company Zocdoc faced a conundrum: most practices had ceased to offer in-person visits as Covid-19 cases continued to climb. The company quickly pivoted in April, adding a tool for patients to search for telehealth appointments and for physicians to offer video visits. Before the pandemic, telehealth visits only accounted for 1% of appointment bookings through Zocdoc — it wasn’t necessarily something that its users were seeking at the time. Now, bookings for in-person visits have recovered to pre-pandemic levels, while telehealth bookings are up 20%.
Revenue and Business Model
The company is now turning a profit, after shifting from a flat subscription model for physicians to a fee-per-booking model in 2018. Zocdoc generates revenue through fees paid by healthcare providers when new patients book them. In the last year, Zocdoc said its revenue has increased, after growing 35% year-over-year in 2019. The change to the payment model resulted in a 50% increase in the number of providers on its platform in states that have transitioned to the new system.
Key Revenue Streams
- Subscription Fees for Providers: Providers pay subscription fees to be listed on the Zocdoc platform and gain access to the appointment booking system.
- Booking Fee for Each Appointment: Zocdoc charges healthcare providers a booking fee for each appointment scheduled through its platform.
- Premium Provider Features: Zocdoc offers healthcare providers the option to purchase premium features to enhance their profiles and visibility.
- Sponsored Results: This additional stream allows for increased visibility through paid placement on the platform.
Core Platform Features for Patients and Providers
Zocdoc is an online medical appointment booking platform with the mission to connect patients with doctors more efficiently. For patients, the use of the Zocdoc platform is free of charge. The platform includes several essential features designed to streamline healthcare access:
- Online Appointment Booking: Allows patients to search for doctors and book appointments instantly based on specialty, insurance, location, and availability.
- Doctor and Specialist Directory: Offers a large online directory where patients can browse verified profiles of healthcare providers, complete with reviews and ratings.
- Insurance Filtering: Lets users filter doctors by accepted insurance plans, making it easier for patients to find in-network providers.
- Calendar Integration: Syncs with doctors’ schedules so patients can view real-time availability and avoid double bookings.
- Telehealth Appointments: Supports virtual visits, allowing patients to connect with doctors online for consultations.
Summary of Platform Metrics
The following table outlines the key aspects and growth of the Zocdoc platform based on recent reports:
| Aspect | Data / Status |
|---|---|
| New Funding | $150 Million (Francisco Partners) |
| Total Users | Over 7 million users |
| Virtual Visit Providers | 10,000 providers |
| Revenue Model | Fee-per-booking and Subscription fees |
| Telehealth Booking Growth | Up 20% compared to pre-pandemic levels |
Future Growth Strategies
With the new funding, Zocdoc aims to build out a marketplace where users can search for in-network doctors, book in-person or virtual appointments, and get prescription refills. The company also recently rolled out a Covid-19 vaccine scheduling tool, which pulls in appointment availability from local health systems. As Zocdoc continues to grow, it remains focused on building into an important healthcare company while maintaining its status as a profitable, privately owned entity.