What's the Outlook for Telehealth?
Population Health Alliance
The industry’s only multi-stakeholder professional and trade association solely focused on population health.
The COVID-19 pandemic led to a surge in telehealth encounters , which have dropped to some degree but are still above pre-pandemic levels .
From a clinical perspective, a systematic review documented the value of remote access for rural and underserved communities and the ability of telehealth to deliver comparable quality in primary care and mental health. However, some indications of lower performance include completion of diagnostic tests and referrals when ordered through telehealth encounters and persistent disparities concerning access to telehealth services for some populations and insurance types.
Patient experiences with telehealth have generally been positive, though, in a study based on surveys of physicians and patients in 2021, 80% of physicians would prefer to provide only a small share of care or no care via telemedicine, and only 36% of patients preferred to seek care by video or phone.
On the policy front, the Centers for Medicare & Medicaid Services (CMS) extended many of the pandemic telehealth flexibilities through December 31, 2024, including audio-only for some services. Professional associations, including the American Medical Association (AMA), support The CONNECT for Health Act, 2. 2016 , which proposes to expand coverage of telehealth services through Medicare and make the flexibilities introduced during the pandemic permanent.
Financial projections, including Fortune Business Insights , paint a rosy picture of telehealth, projecting significant growth over the next seven years, “especially in radiology, cardiology, behavioral health, and online consultation.”
The global telehealth market is projected to grow from $142.96 billion in 2023 to $504.24 billion by 2030, at a CAGR of 19.7% during the forecast period.
Accreditation entities, including URAC and The Joint Commission (July 1, 2024), have telehealth accreditation programs. NCQA announced the launch of a virtual care accreditation pilot program (November 2023).
These are signs that key stakeholders believe that telehealth is here to stay.
Potential warning signs?
However, some indicators suggest that not everything is as positive as some expect. This trilliant health report (August 2023) suggested that the market is saturated with telehealth providers, and market differentiation would be challenging.
?Less than a year later, Optum (4/24/2024) announced the closing of its virtual care unit after only three years of operation. About a week later, Walmart (4/30/2024) also announced that it would be closing all of its Walmart Health centers and Walmart Health Virtual care because “we determined there is not a sustainable business model for us to continue.”
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Will other entities pull back their offerings in telehealth?
In the first quarter of 2024, Teledoc Health experienced widening losses, and American Well Corporation’s revenue was down 7% over the same period last year. Are these signals about the market fundamentals or reflections of each company’s business decisions and investments? Only time will tell.
PHA supports telehealth expansion
The Population Health Alliance (PHA) supports the continued expansion of telehealth. When provided by highly qualified professionals, it is an essential modality of care for various conditions across disparate geographies and specialties. Telehealth is also an appropriate complement to in-person care when it makes clinical and logistical sense.
PHA supports providing telehealth across state lines without requiring an initial, in-person encounter.
What else can be done to support telehealth?
Michael S. Barr, MD, MBA, MACP, FRCP
Sr. Director, Population Health Improvement
The Population Health Alliance (PHA) is committed to Quality and Continuity of Care.?Our key priorities are advancing value-based care, improving consumer engagement, and addressing social determinants and health equity.
Join PHA to engage with industry-leading colleagues via our Government Affairs, Advancing Primary Care, and Integrated Behavioral Health groups, all of which prioritize telehealth. ? Find out more on our membership page .