Two companies in the telehealth space, Spring Care Inc. and Everly Health Inc., have shuffled law department leaders as investors make bets on the industry and Congress hears calls to loosen regulations.
Spring Care Inc., a New York-based mental health benefits platform that does business as Spring Health, brought on Aja Baxter as chief legal officer last month.
Everly Health, a home diagnostics and telehealth provider that was formed out of a merger last month, recently appointed Joaquin Gamboa to be its chief legal officer. Gamboa had been chief business development and legal officer at Spring Health, which hired Baxter to take over Gamboa’s legal duties.
The dueling moves come after Amazon.com Inc. and Microsoft Corp. made big bets on the future of digital health care. A congressional subcommittee also heard testimony this week from employers urging that restrictions on telehealth be loosened to cut costs and better serve a growing demand for mental health services.
Spring Health, founded in 2016, raised $76 million in a Series B financing round in November led by investment firm Tiger Global Management LLC and basketball stars Kyle Lowry and Breanna Stewart.
Baxter said in an email that he began his Spring Health job March 15. The company hired Baxter after he spent three-and-a-half years as general counsel for Breather Products Inc., a Montreal-based co-working startup that recently filed for bankruptcy and said it would close its 400 locations and move to an online-only platform.
Spring Health hired Gamboa in mid-2020 from ZocDoc Inc., a telehealth giant, where he spent more than a half-dozen years as legal chief, head of business and government affairs, and chief people officer.
Gamboa left Spring Health earlier this year to become chief legal officer at PWNHealth LLC. His new employer subsequently agreed to merge in March with Home Access Health Corp. and Everly Well Inc., a home health testing startup valued at $1 billion last year. The result was a new company called Everly Health.
Bloomberg News reported that the cash-and-stock combination values Everly Health at $2.9 billion. PWNHealth, a clinician network for diagnostic testing, had a partnership with Everlywell prior to their merger.
Christina Song, a spokeswoman for Everlywell, confirmed that Gamboa is now legal chief for Everly Health, having replaced former PWNHealth general counsel Catherine Capeless. Everlywell, which once appeared on the reality television show “Shark Tank,” makes home testing kits for Covid-19 and other diseases.
Gamboa didn’t respond to a request for comment about his new role at the combined company, which will be based in Austin, Texas.
Wilson Sonsini Goodrich & Rosati and Hyman, Phelps & McNamara advised Everlywell, founded in 2015, on the transaction.
PWNHealth, started in 2013 and also privately held, turned to Jones Day and Choate, Hall & Stewart for outside counsel on the merger.
More Telehealth Hires
Everly Health and Spring Health are among several notable telehealth companies that have recruited in-house legal talent during the coronavirus pandemic.
Babylon Partners Ltd., a U.K.-based medical startup that Bloomberg News reported this month is in talks to go public by merging with a special purpose acquisition vehicle, named Martin Arms its new global head of litigation in March. Arms was most recently a retired litigation partner-turned-of counsel at Wachtell, Lipton, Rosen & Katz in New York. Babylon could be valued at $4 billion, per Bloomberg News.
Bright Health Group Inc., a Minneapolis-based digital health and insurance technology company that entered the telehealth space this month by acquiring startup Zipnosis Inc., brought on retired Best Buy Co. Inc. legal chief Keith Nelsen last year as general counsel and corporate secretary. Bloomberg News reported this month that Bright Health is planning a potential $1 billion public listing this year.
SOC Telemed Inc., a Reston, Va.-based acute care telemedicine company that went public last summer by merging with Specialists on Call Inc. and a SPAC, hired former NortonLifeLock Inc. vice president of legal Eunice Kim as its general counsel in September. Orrick, Herrington & Sutcliffe advised SOC Telemed on that deal and its purchase of Access Physicians, a telemedicine provider, in March.
SteadyMD Inc., a St. Louis-based telehealth startup that raised $25 million in March from investors that included actor and entrepreneur Ashton Kutcher, added former Armstrong Teasdale and Lathrop GPM of counsel Diane Keefe as general counsel late last year.
ClearMD Solutions Inc., a New York-based telemedicine skincare company in stealth mode, hired Cleary Gottlieb Steen & Hamilton corporate associate Amy Shi this month as its new head of legal.