US Telemedicine Market Analysis

US Telemedicine Market Analysis


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US telemedicine market size is at around $25.54 Bn in 2022 and is projected to reach $84.88 Bn in 2030, exhibiting a CAGR of 16.2% during the forecast period. With 67 Mn people in the US reporting having active wearable devices with 82.38% willing to share the data collected with their healthcare providers telemedicine is an untapped and potentially sizeable market. Major players like MDlive, Amwell, Teladoc Health, and Doctor on Demand are yet to scale up to their maximum operations.

ID: IN10USDH010 CATEGORY: Digital Health GEOGRAPHY: US

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US Telemedicine Market Executive Summary

US telemedicine market size is at around $25.54 Bn in 2022 and is projected to reach $84.88 Bn in 2030, exhibiting a CAGR of 16.2% during the forecast period. Telemedicine is a method of obtaining healthcare visits with doctors, psychiatrists, or nurses over the Internet using your phone or computer. These meetings are typically video calls via an app or platform, while some providers also offer online chat messaging, email help, and phone calls. The goal of telemedicine is not to replace doctor appointments at clinics. Instead, they should be used to supplement traditional healthcare. Telemedicine can be used to communicate with a doctor to see if you need a physical appointment, seek or renew drug prescriptions, examine and treat minor health concerns, and access counseling and other mental health treatments.

The telemedicine market in the US is quickly expanding, driven by technological improvements, changes in healthcare delivery methods, and increased demand for access to healthcare services. Telemedicine is becoming more widely employed in a variety of medical specialties, including primary care, mental health, and specialty care. It is especially beneficial for people who live in remote or underdeveloped locations, or who have difficulties obtaining standard healthcare services owing to mobility or other restrictions. Furthermore, it has witnessed an increase in its use during the COVID-19 pandemic, which severely affected healthcare facilities, and it allowed it to lower the risk of infection.

As primary care remains a hot spot for private equity, pharmacy chains, and health insurers, companies like Everside Health have received $164 Mn in growth equity funding to accelerate its growth and support potential M&A opportunities, and CVS Health has made a $100 Mn investment in Carbon Health, both of which will focus on primary care, including mental and occupational health, virtually and on-site or near-site to employers. New features and services to provide predictive patient care that treats the full person rather than just their symptoms. In the US, a lack of access to high-quality primary care has aggravated chronic illnesses, exacerbated mental health issues, and increased healthcare expenses. to integrate more mental health specialists into its health centers and to expand its technology capabilities in order to achieve better therapeutic outcomes.

US Telemedicine Market Analysis

Market Dynamics

Market Growth Drivers

The telemedicine market is driven by the rising prevalence of chronic diseases coupled with the increasing geriatric population; favorable government efforts, reforms, and regulations promoting telehealth; a shortage of healthcare professionals; and growing awareness of the benefits of telehealth. Other factors driving the growth of this market include the development of artificial intelligence & virtual assistants, as well as the use of technologies such as telerobots. Telemedicine is dependent on technology, and technical advances, such as the development of new platforms, wearable devices, and sensors, are allowing for the delivery of more effective and efficient telemedicine services. In 2022, 67 Mn people in the US were reported to have active wearable devices. Nearly half of the users (47.33%) use the devices on a daily basis, with the majority (82.38% weighted) eager to share health data from wearables with their care providers.

Market Restraints

There are several causes for market limitations in the growth of telemedicine these vary from rising interest rates, which have made operational conditions less appealing in the US, to Russia's invasion of Ukraine, the consequences of which have reverberated throughout the global economy. However, a lack of acceptable standards in comparison to traditional healthcare systems, as well as patient privacy and confidentiality concerns also have been reported to hinder market expansion by 24%. Telemedicine appointments may not be covered by your insurer. Only 26 states compel insurance to cover or reimburse telemedicine costs. However, rules are constantly changing, and additional states may compel insurers to limit cost-sharing in the future. To connect via an unencrypted channel or a public network, hackers or others may get unauthorized access to data. Also, some apps do not have the ability to prescribe or refill prohibited drugs.

Competitive Landscape

Key Players

  • MDlive
  • Amwell
  • Twilio
  • Teladoc Health
  • Doctor on Demand
  • Zoom Video Communications
  • Access Telecare
  • VSee

Notable Recent Deals

October 2022 - UnitedHealth Group completed its acquisition of Change Healthcare after overcoming the Department of Justice in federal court in its attempt to halt the $13 Bn transactions. UnitedHealth, the insurance behemoth, announced the deal's completion, highlighting the firms' shared ambition for simplifying and adapting the healthcare system to the requirements of payers, providers, and patients. The partnership intends to link and streamline the essential clinical, administrative, and payment systems on which healthcare providers and payers rely to serve patients. Reduce friction and increase efficiency to benefit the entire health system, resulting in lower costs and a better experience for all stakeholders.

September 2022 – CVS Health has agreed to pay $8 Bn for Signify Health, beating out possible buyers such as Amazon and UnitedHealth in a bidding war for the home healthcare provider. With the acquisition of Dallas-based Signify, CVS Health will gain 10,000 clinicians as well as technology to enable providers, insurers, and employers to manage in-home care. CVS has been attempting to become a full-service healthcare provider, which management has stated will demand a presence in primary care as well as the inclusion of in-house doctors.

Healthcare Policies and Regulatory Landscape

The American Telehealth Association (ATA) pursues regulatory and legislative corrective steps to guarantee that all telehealth providers act in unison to benefit the telehealth requirements of US citizens. They intend to investigate the telehealth tax provision for High Deductible Health Plan (HDHP) and Health Savings Account (HSA), allow telehealth services to be treated as an excepted benefit, waive the in-person requirement for the prescription of controlled substances via telehealth, and increase the focus of Congress on the acute hospital care at the home program beginning in January 2023. The Telehealth Modernization Act, CONNECT for Health Act, Telemental Health Care Access Act, Telehealth Response for E- prescribing Addiction Therapy Services Act, and TREATS Act are the legislative priorities before the COVID-19 Public Health Emergency (PHE) ends. If Congress does not act before the PHE expires, telehealth access for the over 60 Mn Medicare beneficiaries will cease overnight.

Reimbursement Scenario

Medicaid and Medicare have the most beneficiaries in the US insurance market, and telehealth services are compensated based on the plan of service by the insurance provider. MDLIVE accepts insurance depending on your policy; urgent care appointments cost less than $82, dermatological appointments cost $95, and psychiatric sessions cost $284. In the absence of health insurance, LiveHealth takes $175, otherwise, visits are $59 for an initial psychiatry appointment and $75 for follow-ups. The individual pays $75 for a medical consultation, $129 for a 25-minute mental health (psychology) consultation, $179 for a 50-minute mental health (psychology) consultation, $299 for an initial psychiatry consultation, and $129 for follow-up psychiatric visits at Doctor on Demand. Amwell works with numerous insurance companies and services range from $79 or less for urgent care to $279 for online psychiatry. Insights10's thorough report provides the reimbursement breakdown by the insurance service provider as well as services delivered under the plan.

1. Executive Summary
1.1 Digital Health Overview
1.2 Global Scenario
1.3 Country Overview
1.4 Healthcare Scenario in Country
1.5 Digital Health Policy in Country
1.6 Recent Developments in the Country

2. Market Size and Forecasting
2.1 Market Size (With Excel and Methodology)
2.2 Market Segmentation (Check all Segments in Segmentation Section)

3. Market Dynamics
3.1 Market Drivers
3.2 Market Restraints

4. Competitive Landscape
4.1 Major Market Share

4.2 Key Company Profile (Check all Companies in the Summary Section)

4.2.1 Company
4.2.1.1 Overview
4.2.1.2 Product Applications and Services
4.2.1.3 Recent Developments
4.2.1.4 Partnerships Ecosystem
4.2.1.5 Financials (Based on Availability)

5. Reimbursement Scenario
5.1 Reimbursement Regulation
5.2 Reimbursement Process for Diagnosis
5.3 Reimbursement Process for Treatment

6. Methodology and Scope

Telemedicine Market Segmentation

Component

  • Product
    • Hardware
    • Software
    • Others
  • Services
    • Tele-consulting
    • Tele-monitoring
    • Tele-education

Modality

The industry is driven by three concepts, which include real-time (synchronous), store and forward (asynchronous), and others comprising remote patient monitoring, etc.

  • Store and forward
  • Real-time
  • Others

Application

  • Teleradiology
  • Telepsychiatry
  • Telepathology
  • Teledermatology
  • Telecardiology
  • Others

Delivery Mode

  • Web/Mobile
  • Audio/Text-based
  • Visualized
  • Call centers

Facility

  • Tele-hospital
  • Tele-home

End-user

  • Providers
  • Payers
  • Patients
  • Others

Insights10 will provide you with the reports within 10 key parameters which are:

  1. Market Overview
  2. Market Growth Drivers & Restraints
  3. Epidemiology of Disease Type
  4. Market Segmentation
  5. Market Share
  6. Competitive Landscape
  7. Key Company Profiles
  8. Healthcare Policies & Regulatory Framework
  9. Reimbursement Scenario
  10. Factors Driving Future Growth

Based on our many years of experience, we believe that these are the parameters that are critical to decision-making for business stakeholders. Our focused approach to developing reports focused on 10 key parameters, enabled us to arrive at the name “Insights10”.

 

Stage I: Market Data Collection

Primary Interviews: We have developed a network of experts, freelancers, and researchers across countries through which we engage with local experts to gather key data points and assumptions about each market. We also engage regularly with some of the best market research agencies such as Atheneum, GuidePoint, GLG, etc. to conduct surveys and interviews, and build intelligence. We have language translators as a part of our team, who between them can cover 30+ languages allowing us to extract better local insights.

Secondary Data Collection: We have developed strong expertise and experience in secondary data collection methods for developing unique data sets and research material. We gather data from multiple reliable sources to maintain a high level of accuracy and consistency. The market data is analyzed and forecasted using appropriate statistical and coherent models. The report offers an overall analysis of the market size, growth, and market share as well as a segment-level analysis of the specific market. Our report includes precise, to-the-point information related to the overall market, competition, growth drivers, challenges, regulatory updates, and competition.

Data Sources: We have access to multiple highly reliable free and subscription data sources. We have many years of experience to understand which sources are more dependable for what and which to prefer for the reliable and latest information. The key sources of information include the following, but are not limited to:

 

 

Stage II: Market Data Analysis and Statistical Model

Market Trends: We generally look at macro parameters and micro indicators. The macro parameters include changes in government policies, demand and supply of the market, government intervention programs, and major market share. The micro indicators are GDP growth, market size, market volume, etc. We also understand nuances specific to each country like the US, Canada, India, Germany, etc., and have worked across 60+ countries and hence not only understand global trends but how these differ by country, how payment models, market structure, cultural parameters, etc. differ in each country.

Market Sizing and Analysis: Our expert data analytics team has created various market forecast models by employing the top-down approach i.e. starting with the large overall market and segmenting different areas and the bottom-up approach i.e. starting with population and epidemiology and rolling up based on spend, etc., estimating the size of the market, and distributing among the geographic and/or product segments.

The top-down approach is mainly used for new product forecasting and the bottom-up approach is used for demand estimation of any product for different countries summed up to form the total market. We are able to round off insights and build stronger forecasts because we always do both these methods and triangulate the final numbers.

The study on the market covers the analysis of the leading geographies such as Asia-Pacific, Africa, Europe, Middle East, North America, and  Latin America for the period of 2022 to 2030. The qualitative analysis covers the industry landscape and trends, market opportunities, competitive landscape, and policy and regulatory scenario, and the quantitative analysis covers different market estimates and forecasts.

Data Triangulation & Validation:

Data triangulation of various sources and results of the research are carried out by benchmarking with reliable sources such as industry statistics, statistical databases, and company-level averages, etc.

We make sure to finalize the numbers in alignment with the market research. Firstly, our internal experts ensure thorough validation and checking to ensure accurate and precise analysis and then validation is also done using a multiple-data analysis model. Two-level validation is done and entails the finalization of the report scope and the way of representation pattern.

 

 

Stage III: Interpretation and Presentation

Analysis & Interpretation: The information gathered is then analyzed and synthesized. The second series of interviews are done if necessary to check and validate. The future opportunities are analyzed by understanding product commercialization and many other factors. It also comprises the analysis of data discrepancies observed across various data sources. Information procured from secondary and primary results is then, interpreted by considering the following parameters: (a partial list)

  • Establishing market drivers and trends
  • Analyzing the regulatory landscape to understand future growth
  • Market Segment based analysis to obtain revenue/volume
  • ​Analyzing current needs and determining penetration to estimate the market

Insights: Our reports deliver actionable insights backed with supporting facts and figures to assist you in achieving exemplary growth. Our in-depth analyses are interspersed with relevant insights and statistics to offer an executive-level view of a given market. The description helps in correlating many minor factors affecting the market and their impact on the different segments within the market.

Data curated from the analysis and interpretation are drawn to portray all in one consolidated report.

Presentation & Reporting: The market research report is presented in different forms such as charts by using a scientific approach for easy understanding. Historic, current, and future analysis is provided for each market in terms of both value and volume. The size of the market is interpreted in the US Dollar value and the respective unit, based on the product, for volume consumption.

The foreign exchange rates are calculated on the respective dates and for the respective regions covered in the study.

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This report addresses

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  • Qualitative, acute and result oriented market analysis
  • Market size and forecasts from 2022 to 2030
  • Opportunities for expansion and in-depth market analysis
  • Segmentation and regional revenue forecasts
  • Analysis of the market share and competitive landscape
  • Strategic Recommendations to chart future course of action
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Last updated on: 20 February 2024
Updated by: Shivam Zalke

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