The price of telehealth services may only continue to increase in the coming years as healthcare providers and businesses are using online consultations more and more. This has not only increased the demand for telehealth services during a three year period up to 2017, according to a market research report by IBISWorld, but also caused an increase in price. IBISWorld expects the price to only increase in the coming years through 2020.
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However, telehealth market competition is helping keep price growth in check since the telehealth market is highly fragmented and competitive, the report said. Although, there are a few prominent players such as Teladoc and Doctor On Demand.
“IBISWorld estimates that there are about 640 firms currently operating in the US telehealth market. Moreover, most operators are small and midsize firms that are privately owned and operated. In the next three years, market share concentration is projected to remain low as new players enter the market, warranting strong price competition,” Anna Son, procurement research analyst at IBISWorld, said in a press release.
In 2017 alone, prices of telehealth services are expected to grow 3.5%, Son said in the release. This is because more and more employers are and will be offering more telehealth services to their employees. Son said in the release that this is “to help curb skyrocketing healthcare costs related to employee sickness and absenteeism.”
Regulations contribute to price increase
In the United States today 30 states and the District of Columbia require private health insurance carriers to provide the same coverage for telehealth services as they do for in-person visits over the next three years, the release said.
Furthermore, during the three year period in which the demand for telehealth services grew, there were also a number of regulatory changes as well with more to come, the release said. Currently, there are more pending legislations that are expected to help facilitate the adoption of telehealth in the future.
“A rising number of health insurance companies are planning on expanding their coverage for telehealth services. These regulatory changes will help accelerate the integration of telehealth services in healthcare settings, thus leading to anticipated double digit sales growth and rising service rates in the coming years,” Son said.