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What happened

On a forgettable Friday for the stock market, Teladoc Health (NYSE: TDOC) did comparatively well. The bellwether telehealth stock lost only 1.2% of its value over the course of the day, which was good compared to the S&P 500 index’s nearly 2.8% slide. Teladoc’s better-than-average performance was due in no small part to a fresh deal announced with a top Empire State healthcare provider.

So what

Teladoc announced Friday morning that it has signed an agreement with said healthcare provider, privately held Northwell Health. The deal will see Teladoc “deliver connected virtual care and expand care delivery to patients both inside and outside the four walls of the health system,” as the company put it in a press release.

Adult and child conducting a telehealth session with a healthcare professional.

Image source: Getty Images.

The rollout will begin with 20 of Northwell’s hospitals — nearly its full count — and over time will be extended to cover that company’s numerous facilities throughout New York.

Neither company has provided the financial details of their arrangement. Regardless, the monies involved are sure to be meaningful, as Northwell is the largest healthcare provider in New York state. All told, it operates 22 hospitals and 830 outpatient facilities, has relationships with over 16,600 physicians, and has more than 2 million patients under its care.

Now what

In its announcement, Teladoc quoted its president of hospital and health systems Andy Puterbaugh as saying that “Our single, integrated solution, which spans both consumer and provider-to-provider applications, will add critical capabilities for Northwell Health in support of better health outcomes for all patients.”

And no matter the price tag on the contract, it should also further legitimize Teladoc’s solutions as useful — and at times, critical — delivery systems for remote patient care.

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Eric Volkman has no position in any of the stocks mentioned. The Motley Fool owns and recommends Teladoc Health. The Motley Fool has a disclosure policy.

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