In recent years, the healthcare industry has witnessed a remarkable transformation with the rise of virtual healthcare. This innovative approach, powered by advanced technologies and telecommunication, has revolutionized the way healthcare services are delivered. Virtual healthcare has not only improved patients’ access to medical advice and treatment but also opened new avenues for businesses to thrive in this rapidly expanding sector.
Virtual healthcare has experienced remarkable growth in the last ten years. The U.S. virtual care market was valued at USD 4.2 billion in 2021 and is projected to grow at a compound annual growth rate (CAGR) of 30.75% from 2022 to 2030. This surge can be attributed to several factors, including the continuous development of advanced technologies, increasing patient demand, and regulatory reforms.
The Association of American Medical Colleges predicts a shortage of approximately 124,000 specialty physicians and 37,800 primary care physicians by the year 2034. This anticipated physician shortage in the U.S. is expected to further drive the growth of the virtual healthcare market in the forthcoming years.
The U.S. government is significantly increasing its investments in digital health and actively promoting the adoption of healthcare information technology (IT), leading to a notable expansion of the market. One notable example of such investments is the United States Department of Agriculture’s (USDA) substantial allocation of USD 42 million in February 2021. This funding was dedicated to bolstering telemedicine infrastructure and remote learning initiatives, with the aim of enhancing health outcomes and education across the nation.
Bharath Home Medicare and Raphacure entered into a strategic collaboration in remote patient monitoring and domiciliary care.
Sound Physicians Telemedicine and Health Services Management (HSM) announced a partnership to offer services in Florida and Texas.
Teladoc Health, Inc. launched a digital application that offers personalized whole-person care to individuals.
Teladoc Health Inc. partnered with Cloud DX to improve remote patient monitoring offerings in Canada.
GlobalMedia Group, LLC announced that its eNcounter telehealth software suite, ClinicalAccess Station Lite, and several diagnostic examination cameras received the CE mark, allowing the company to expand its services to the European Union
Veradigm, a business unit of Allscripts Healthcare, announced an agreement with Lash Group, a patient support services business. This agreement will enable specialty medications to be available for management within the Veradigm AccelRx platform, which restructures the specialty enrollment process for users of Veradigm, Allscripts, and other electronic health records (EHR) software vendors.
Teladoc Health: One prime example of a business that has thrived in the B2B virtual healthcare sector is Teladoc Health. As a prominent telemedicine company, Teladoc Health provides virtual healthcare solutions to various organizations and employers. By offering remote consultations, behavioral health support, and chronic condition management services, they have gained immense popularity. In 2020, Teladoc Health reported revenue of over $1.1 billion, a staggering 98% year-over-year increase, demonstrating the immense potential and demand in the B2B virtual healthcare market. In October 2020, Teladoc Health and Livongo, two of the largest virtual care providers, announced a merger. The combined company will provide a comprehensive suite of virtual care services, including telemedicine, chronic condition management, and behavioral health services.
Amwell: Amwell is another successful B2B virtual healthcare platform that has made significant strides in the industry. Partnering with healthcare systems, insurers, and employers, Amwell’s telemedicine services enable patients to access high-quality medical care virtually. With the advent of the COVID-19 pandemic, the company experienced a notable boost in business. During the first quarter of 2020, Amwell reported a 65% YoY revenue increase, further solidifying the growth of the B2B virtual healthcare market.
98point6 Technologies: As a leading B2C virtual healthcare provider, 98point6 offers users on-demand text-based primary care services. The company’s platform utilizes AI-powered tools to diagnose and treat various medical conditions without the need for in-person visits. With an affordable subscription model and a user-friendly interface, 98point6 has managed to attract a vast customer base. In 2021, the company secured $118 million in funding, signifying the immense potential and growth opportunities in the B2C virtual healthcare segment.
Hims & Hers: Hims & Hers is a direct-to-consumer telehealth platform focused on providing personalized, affordable, and discreet access to healthcare products and services. The company covers a wide range of issues, from mental health support to sexual wellness products. Through targeted marketing and seamless online consultations, Hims & Hers reported a remarkable 69% YoY revenue growth in 2020, underscoring the success and viability of B2C virtual healthcare services.
The growth of virtual healthcare as an industry has been nothing short of remarkable. Supported by staggering statistics and successful business case studies, it is evident that both B2B and B2C virtual healthcare services have carved a prominent place in the market. As technology continues to advance and consumer preferences evolve, virtual healthcare is poised to remain at the forefront of the healthcare industry, offering accessible, convenient, and effective medical solutions for patients worldwide. The future holds boundless opportunities for businesses willing to embrace innovation and leverage the potential of virtual healthcare in this ever-changing landscape.
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