Why Teladoc could be on shaky ground

Teladoc shares fell last week after a report that Highmark is not renewing its contract with the telemedicine company.

The shares fell by one-fifth, not a huge hit, but a worrying sign about the health of the company, according to the Wall Street Journal.

There is much competition in the industry, the article notes, including companies like Doctor on Demand and American Well. Some, like the former, don't charge a subscription fee. while Lewisville, Texas-based Teladoc charges a monthly fee in addition to visit costs.

Currently, Teladoc isn't turning a profit, according to WSJ. While it may be profitable by 2018, according to analysts, it's hard to say what other companies will enter the industry offering similar but cheaper services.

Teladoc has seen revenue hits in previous months, as well. Right before its first initial public offering, the telehealth company saw a loss of $17.1 million. Revenue for the company saw growth of 78 percent during Q2, to $18.3 million, but the $17.1 million loss is still a big hit, FierceHealthIT previously reported.

In addition, Teladoc is being sued by American Well, with the latter charging that Teladoc infringed on its intellectual property.

To learn more:
- here's the WSJ article