After COVID-19 brought record-setting investment to the healthcare industry in 2020, this year is shaping up to be even better. Demand for telehealth services skyrocketed during the pandemic, and funding is starting to follow suit.
Telehealth funding in the first quarter almost doubled from the same quarter a year ago. Big tech companies such as Verizon, Microsoft and Amazon are taking notice, striking deals to solidify themselves in the booming industry. The telehealth market is poised to grow to $560 billion by 2027, and there is no shortage of players trying to claim their slice of the pie.
Related ETF & Stocks: Global X Telemedicine & Digital Health ETF (EDOC), Teladoc (TDOC), Microsoft (MSFT), Verizon (VZ), Amazon (AMZN)
COVID-19 Thrust Telehealth into the Spotlight
As MRP noted last summer, COVID-19thrust telehealth into the spotlight when it became clear the industry was poised to benefit from the early stages of the lockdown. Now, it appears telehealth is primed for another leg-up.
New data from FAIR Health’s Monthly Telehealth Regional Tracker shows that across the US, telehealth claim lines jumped 2,417% in December 2020 from the same month a year prior. As a percentage of total medical claims, telehealth rose from 0.22% to 6.1% over that same period.
A 2020 consumer survey showed that number of people who use telehealth services doubled, from only 39.4% before the pandemic to 79.5% post-quarantine. Not only do virtual visits simplify at-home care, but they will help alleviate a potential shortage of doctors, as the US expects to be short 55,000 primary care doctors by 2030.
Consulting firm McKinsey and Company estimates that at least 25%, or $250 billion, of all Medicare, Medicaid, and commercial outpatient, office and home health spend could be done virtually.
According to a recent survey, 73% of physicians would like to continue utilizing telehealth services to conduct chronic-health related appointments. 63% of physicians also highlighted technology concerns for their patients to conduct these appointments, illustrating the continued need for technology companies to invest in the growing telehealth industry.
Investment Continues to Shatter Records
A record $81.6 billion was invested in healthcare across the globe in 2020, and now 2021 is shaping up to be another banner year for the industry. In the first quarter alone healthcare funding reached $31.6 billion, the highest quarter on record.
Telehealth on its own has seen immense growth…