As the coronavirus pandemic continues to spread and forcing people to remain in quarantine, remote alternatives to necessary services are quickly growing in demand. This, of course, includes telehealth services that allow patients to meet with their doctors from anywhere in the world with an internet connection.
Moreover, many consumers are opting to utilize telehealth services in order to avoid putting additional strain on the overburdened healthcare system. This also helps reinforce social distancing policies and avoid potential transmission risks during a visit.
Telehealth Industry Facing Surging Demand
However, while telehealth services are certainly benefiting from this increased demand, many of them are having difficulties accommodating the surge in customers. In fact, many of these providers are facing major backlogs.
Roy Schoenberg, CEO of telehealth company Amwell, stated that the company is “very quickly getting to a point where the supply of medical services isn’t there” and that it needs “to have enough clinicians to allow us to handle that incoming volume.”
Due to this influx of new patients, companies like Amwell and the increasingly-popular Teladoc are needing to increase staff and upgrade their systems to meet the demand.
This demand is likely to increase further as President Trump recently authorized an expansion that allows more Medicare patients to access telehealth services.
Still, while many of these companies are struggling to deal with this increased volume, they remain hopeful that patients will be more inclined to continue using telehealth services even after the COVID-19 pandemic has passed.
Not only do these services offer a more convenient alternative for patients that need help with less severe health issues, but they also help provide services to patients in more rural communities who may not have access to nearby medical care.
“Telehealth allows you to pool together health care resources and drive them to where they’re desperately needed. That understanding has been 100% heard at all levels of government. That is the clarity everyone is beginning to see,” Schoenberg said.
Teladoc Q1 Earnings
One of the many telehealth companies that is seeing a major surge in demand is Teladoc Health, Inc. (NYSE: TDOC), which recently reported earnings for Q1 2020. The results revealed that the company has reduced its losses compared to the same quarter last year.
The highlights of Teladoc’s Q1 earnings report include:
- Net Loss: $29.6 million, down 2% from Q1 2019
- Net Loss Per Share: $0.40
- Revenue: $180.8 million
- Total Visits: 04 million, up 92% year-over-year
Whether or not this growth is sustainable is difficult to predict due to the unprecedented circumstances surrounding this increased demand.
That being said, the company reported that it expects its revenue to be between $215 million and $225 million in Q2 with a net loss per share of between $0.23 and $0.28. As the telehealth industry continues to mature, industry leaders will emerge and properly scale their platforms to ensure ability to accommodate more patients.
Article By: Connor Beam