4 Stocks That Continue To Gain From Telehealth Offerings

Image: Bigstock

The telehealth platform has been increasingly adopted worldwide as an effective tool to not only administer and receive the much-needed healthcare services but also to curb the COVID-19 virus spread. Stringent lockdowns and severe travel-related restrictions were observed due to the coronavirus outbreak, which was declared a pandemic by the World Health Organization (WHO) in March 2020. This scenario led to telehealth services ranging from video consultations to remote patient monitoring as the only feasible option left for patients to seek medical help.

In fact, it was the pandemic, which made people realize the importance of remote healthcare services, who were previously reluctant to adopt them. Notably, it was the first time for several clinicians to resort to a virtual platform for addressing healthcare needs, thereby minimizing exposure to the virus. Telehealth has emerged as a convenient tool to offer medical care from the comfort of a patients’ home at lower rates.  

With the United States being no exception to the abovementioned trend, the Centers for Medicare & Medicaid Services (CMS) has been pretty active in waiving reimbursement restrictions under Medicare. Before the pandemic, telehealth reimbursements would have been provided by Medicare under selected circumstances including patients residing in rural areas or where there is a dearth of healthcare resources. However, the onset of the pandemic compelled CMS to ease Medicare payment policies and enable reimbursement of telehealth visits covering a broader array of care.

As a matter of fact, the post-pandemic phase is likely to continue witnessing growing demand for telehealth services. Per MarketsandMarkets, the global telehealth market is expected to witness a CAGR of 37.7% over the 2020-2025 period.

Several factors can be attributed to the high demand, among which an aging U.S. population, shortage of physicians, enhanced telecommunications system, technological advancements, and dire need for cost-effective treatment options are the most notable ones. Per a report published by the Statista Research Department, the percentage of people aged 65 or more have accounted for 16.5% of the total U.S. population in 2019, which is projected to reach 22% by 2050. Also, escalating healthcare expenses across the United States have been sustaining the momentum for decades, with a similar trend likely to continue in the days ahead as well. The fact has been further substantiated by a study of CMS, per which national healthcare spending is anticipated to rise at an average rate of 5.5% over the 2018-2027 period with the metric likely to reach around $6.0 trillion by 2027. Telehealth services have capitalized on such a scenario by offering the much-needed hassle-free and affordable option to patients while continuing to reduce costs and generate revenues for providers.

1 2 3
View single page >> |

Disclaimer: Neither Zacks Investment Research, Inc. nor its Information Providers can guarantee the accuracy, completeness, timeliness, or correct sequencing of any of the Information on the Web ...

How did you like this article? Let us know so we can better customize your reading experience.


Leave a comment to automatically be entered into our contest to win a free Echo Show.