Potential $5 Billion Growth in Telemedicine by 2020

Richard A. Kimball, Jr.
Richard A. Kimball, Jr.

“Telehealth is on the rise. In five years, the healthcare industry will have moved to value-based care with full to partial capitation. This will increase positive outcomes for patients and is great news for those suffering from chronic or post-acute conditions,” says HEXL CEO Richard Kimball Jr. Indeed, many in the industry have shown substantial interest in the development of technology in healthcare and what this means to patient care.

“[T]here is demand to harness the capabilities of these technological innovations. In the last few years, more and more patients have increasingly looked to retail pharmacies in their neighborhoods for routine healthcare services because it’s more convenient than visiting their doctor. The logical next step is that they won’t have to leave their homes at all,” wrote Skip Fleshman in an article for Forbes.

“The goal of telehealth is to prevent hospital readmission, reduce in-office visits, better manage health of individuals with long term conditions and reduce costs for more remote and isolated health care providers,” said Dr. Zamanian, CEO of iData.

A recent report by iData Research projected that the U.S. telehealth market is expected to experience a growth in the double-digits through 2020. According to a PR released by the company, this growth is derived mostly from the demand for customized healthcare solutions, increased chronic illness amongst the aging population, and strained healthcare budgets. The increasing awareness and implementation of standards for reimbursement and adoption of this type of care management is expected to give market growth a boost. The expansion and continued funding of telehealth expenditures in the coming years by both private and public organizations are also expected to play a part in the industry growth. This is good news as, according to Katie Dvorak of FierceHealthIT, “reimbursement and regulations have long held telemedicine back…” She pointed out that almost thirty states “do not allow for reimbursement for such services…[and that] state policy reports released in September by the American Telemedicine Association…show gaps in reimbursement, practice stands and licensure across the country.” This year marks a turning point as the tides change in favor of innovation in healthcare.

5 Responses

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    Justine B.

    Woah! I can definitely see this being true because everything is online and on phones nowadays and with the ease of it I can see it blowing up. It’s still interesting, though, especially because I have never personally used telemedicine. I would like to eventually give it a try, but right now it isn’t something I need or want to do. Very cool, though.

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    Wow! This is definitely the industry to be in right now. I can just imagine how much money that people could potentially make; especially since the physical medicine industry is already a wealthy one. So cool!

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    I think this is wonderful news. People with heart conditions, diabetes, and other long-term diseases may end up living long, healthier lives. They’ll be able to manage their diseases better and from the comfort of their own homes.

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    I have to admit that I do visit the pharmacy nearby more than my regular doctor for my needs. The clinic at the pharmacy is open longer than my doctor’s office, and it’s more convenient since they accept walk-ins.

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    This sounds like it can completely change the face of medicine. I am very excited to see what our healthcare future will look like.

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