Telus Health is putting its money where its mouth is and radically changing its billing practices and scope of service. At the same time, it prepares to go out on its own after years of aggressive strategic acquisitions. The company recently overhauled its billing process in order to align with the province’s Medicare Protection Act. The British Columbia Medical Services Commission quickly sought an injunction, taking the case to court. We thank the Agency for this action, which underscores the high stakes involved in ensuring regulatory compliance.
Telus Health runs 17 physical clinics in Canada. This strategic move has made them one of the healthcare industry’s most influential actors. Its operations are categorized into four main segments: products for employers, innovative “payvider” solutions, retirement benefits, and physical clinics. This structure expands the depth and variety of services the company can provide and it aids the company in its aggressive growth strategy.
Telus Health took another big step in 2022 with the $2.9 billion acquisition of LifeWorks Inc. This was a brave decision that in practice turned out to double the company’s revenue. This acquisition pushed Telus Health over the $1 billion annual revenue mark for the first time. It represents a key turning point in the establishment’s trajectory of expansion. The company’s revenue skyrocketed to $1.7 billion in 2024, a testament to its effective expansion strategies.
The acquisition of LifeWorks has not only expanded Telus Health’s service delivery capacity, but brought about a transformative shift in delivery. The system is designed to default to a virtual appointment when appropriate. Patients can now conveniently book remote consultations with family physicians from their mobile devices. This online method expands access to health care. It responds to the need for telehealth solutions in today’s rapidly changing world.
In Ontario, where Telus Health has its only provincial clinic in downtown Toronto, physicians are considered independent contractors. They get reimbursed through OHIP. Then, they remit a percentage back to Telus to offset costs such as rent and supporting staff. This new model is designed to increase efficiency and save taxpayer dollars while ensuring that patients continue to receive high-quality care.
Telus Health, a division of Telus Communications, provides cutting-edge virtual health services. One of their featured packages, $4,995, comes with a full-body MRI and bone-density scan. These offerings are part of the company’s larger strategy to cater to diverse patient needs beyond traditional public healthcare services.
Dr. Alissia Valentinis, a Telus Health primary care physician, described how the company’s entry into primary care made a difference. She pointed out that better access to family physicians has resulted in lower emergency-room usage.
“These patients now not only have access to a family doctor, that means a lot less emergency-room visits.” – Dr. Alissia Valentinis
With this expansion, Telus Health is developing a more paramedical focused portfolio, recently acquiring digital health firm Aware Health. This care goes outside the realm of the public healthcare system, such as through workplace wellness programs. This change is part of an industry-wide movement in the direction of total health, holistic solutions that seek to improve physical health alongside behavioral health.
The company’s aggressive acquisition strategy over the past decade has resulted in an investment exceeding $3.2 billion, as reported by François Gratton, then-president of Telus Health. We’ve found this strategy to be extremely successful. Analysts including Liam Gallagher at Eight Capital have estimated that Telus Health could be worth $5 billion to $6 billion.
Mr. Arora, having overseen much of Telus Health’s strategic innovation, sounded a sober yet hopeful note about what lies ahead.
“We don’t want to rush into anything, but we will look at and consider everything that’s in the best interest of our shareholders and our customers.” – Mr. Arora
He went on to elaborate on the importance of balancing organic growth with acquisitions to create the company’s future.
“It’s not as if inorganic is completely overriding organic, or vice versa. It’s a nice mix.” – Mr. Arora
As Telus Health navigates these changes and continues its commitment to innovation, it remains focused on delivering value to its stakeholders while adapting to the evolving landscape of healthcare services.
