Introduction: Why Metrics Make or Break Telehealth
Telehealth CEOs love to talk about growth. “We doubled revenue.” “We launched in 20 states.” “We have 50,000 patients.”
But in the boardroom, investors aren’t impressed by vanity metrics. They want to know:
👉 “Is this growth durable, compliant, and scalable?”
The answer comes down to metrics. Not just CAC and revenue, but the right mix of financial, clinical, and compliance signals.
This post lays out the 7 metrics every telehealth CEO must report to investors — and why they determine your valuation multiple.
Section 1: CAC (Customer Acquisition Cost)
What It Is
The cost of acquiring one new patient, including ads, sales, and marketing overhead.
Why It Matters
- High CAC = fragile economics.
- CAC trending upward signals unsustainable growth.
Investor Lens
Investors compare CAC to LTV. If CAC payback takes >12 months, growth looks risky.
Section 2: LTV (Lifetime Value)
What It Is
The total revenue generated per patient over their lifecycle.
Why It Matters
- Telehealth consults without retention = low LTV.
- Recurring care models (subscriptions, chronic care) = high LTV.
Investor Lens
LTV/CAC ratio should be at least 3:1. 5:1+ signals defensible growth.
Section 3: Churn / Retention
What It Is
How many patients leave each month or year.
Why It Matters
- High churn = CAC wasted.
- Retention compounds revenue.
Investor Lens
Strong telehealth brands show <30% annual churn, >12-month patient lifespan.
Section 4: Referral % of New Patients
What It Is
The % of patients acquired via referrals or word-of-mouth.
Why It Matters
- High referrals = strong trust.
- Low referrals = fragile brand.
Investor Lens
Referral-driven growth lowers CAC and signals clinical credibility.
Section 5: Outcomes Data
What It Is
Measured clinical results from your services.
Why It Matters
- Payers and employers demand proof.
- FTC/FDA demand substantiation for claims.
Investor Lens
No outcomes data = no contracts. Outcomes = leverage.
Section 6: Compliance Readiness
What It Is
Your ability to pass HIPAA, FTC, and FDA audits.
Why It Matters
- Non-compliant marketing = liability.
- Weak vendor stack = fines + reputational risk.
Investor Lens
Compliance maturity earns trust and valuation premiums.
Section 7: Unit Economics (Payback Period)
What It Is
How long it takes CAC to pay back from patient revenue.
Why It Matters
- Fast payback = reinvestable growth.
- Slow payback = fragile economics.
Investor Lens
Payback under 12 months is healthy. Under 6 months is premium.
Section 8: Case Example — Weak vs. Strong Metrics
Company A (Weak):
- CAC $220, LTV $250.
- 70% churn after one visit.
- No outcomes data.
- Investors discounted multiple to 2x.
Company B (Strong):
- CAC $200, LTV $1,000.
- 12-month average patient lifespan.
- 30% referral-driven growth.
- Published outcomes → landed payer contracts.
- Investors rewarded with 8x multiple.
Lesson: Metrics are valuation.
Section 9: Building a Board-Ready Metrics Dashboard
Step 1: Track Core Metrics Weekly
- CAC, LTV, churn, referrals.
Step 2: Add Clinical + Compliance Metrics
- Outcomes data.
- Vendor compliance audits.
Step 3: Automate Reporting
- Build dashboards that map directly to investor expectations.
Step 4: Benchmark Against Peers
- Investors compare you to other portfolio companies.
Section 10: Investor Perspective
Boards now expect CEOs to report:
- CAC vs. LTV.
- Churn curves.
- Referral-driven growth.
- Outcomes data.
- Compliance logs.
Weak reporting = fragile story.
Strong reporting = premium multiples.
Section 11: Telehealth Metrics Audit Checklist
- Do you know your CAC by channel?
- Is LTV at least 3x CAC?
- Is churn <30% annually?
- Do >20% of patients come from referrals?
- Do you track and publish outcomes?
- Do you have compliance logs ready for diligence?
- Is CAC payback <12 months?
If you answered “no” to more than two, your metrics are fragile.
CTA: Why You Need Boardroom Metrics Early
Most CEOs discover weak metrics only during diligence. By then, it’s too late.
The right time to architect a metrics framework is before you raise.
That’s why I built the Growth Clarity Diagnostic™.
In one focused session, we’ll:
- Audit your current metrics.
- Identify red flags for investors.
- Build a boardroom-ready dashboard that drives valuation.
👉 [Book your Growth Clarity Diagnostic™ here.]
Because in telehealth, metrics aren’t reporting. They’re survival.
FAQ
Which telehealth metric matters most to investors?
The LTV/CAC ratio. It shows whether growth is defensible.
What’s a healthy churn rate for telehealth?
<30% annually, with >12-month average patient lifespan.
Do outcomes data really affect valuation?
Yes. Payers, employers, and investors all demand proof.
Can early-stage startups track all 7 metrics?
Yes. Even pilot data can signal credibility.
How do compliance logs fit into metrics?
They prove operational maturity and reduce investor risk.
