Telehealth Services: Double-Digit Sales Growth and Rising Service Rates to Come


In the three years to 2017, demand for Telehealth Services has been surging as more healthcare providers and businesses have begun to use online consultations. “Propelling price growth has hampered buyer power over the three year period. In 2017 alone, prices are expected to grow 3.5%, as more employers offer telehealth services to their employees in order to help curb skyrocketing healthcare costs related to employee sickness and absenteeism,” says IBISWorld Procurement Research Analyst, Anna Son. Price growth is forecast to persist over the next three years through 2020 due to rising demand driven by expanding telehealth service coverage and advances in communication technologies.

Market Competition

Fortunately, market competition helps sustain buyer power by keeping price growth in check. Although there are a few prominent players, like Teladoc and Doctor On Demand, the telehealth market is highly fragmented and competitive. “IBISWorld estimates that there are about 640 firms currently operating in the US telehealth market. Moreover, most operators are small and midsize firms that are privately owned and operated. In the next three years, market share concentration is projected to remain low as new players enter the market, warranting strong price competition,” says Son.

Changing Regulation

While the telehealth market has experienced a number of regulatory changes during the past three years, there are more pending legislations that are expected to facilitate the adoption of telehealth services in the foreseeable future. Due to healthcare reform, an influx of newly insured individuals will spur demand for healthcare services, it is also expected to amplify looming shortages of physicians and nurses across the nation. As a result of surging demand for medical assistance, the use of remote patient consultations is projected to pick up in the coming years.

Currently, 30 states plus the District of Columbia require private health insurance carriers to provide the same coverage for telehealth services as they do for in-person visits. However, more states are expected to reimburse telehealth services the same as they do for in-person services over the next three years. According to Son, “A rising number of health insurance companies are planning on expanding their coverage for telehealth services. These regulatory changes will help accelerate the integration of telehealth services in healthcare settings, thus leading to anticipated double-digit sales growth and rising service rates in the coming years.”



March 17, 2017


Topic Area: Press Release


Recent Posts

On the Lookout: The Software Supply Chain as a Healthcare Cyberattack Vector

Staying watchful of third-party software vendors and their activities is critical for healthcare cybersecurity.


Hackensack Meridian Health & Wellness Center at Clifton Opens

The Clifton center expands health care access in Passaic County by reducing barriers such as travel and wait times.


Suffolk Breaks Ground on Expansion of White Plains Hospital

The 10-story, approximately 500,000-square-foot expansion is slated to open in 2028.


EVS Leadership Culture Critical in Preventing Hospital-Acquired Sepsis

Cleaning is an essential yet complex component for the prevention of HAI-induced sepsis.


Man Dies by Suicide in Emergency Department Waiting Room at Kansas Hospital

No staff or patients were harmed, and the man was alone in the waiting area when he shot himself.


 
 


FREE Newsletter Signup Form

News & Updates | Webcast Alerts
Building Technologies | & More!

 
 
 


All fields are required. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

 
 
 
 

Healthcare Facilities Today membership includes free email newsletters from our facility-industry brands.

Facebook   Twitter   LinkedIn   Posts

Copyright © 2023 TradePress. All rights reserved.