In the last two months, as the u.S. economy has stagnated and unemployment has soared, many companies have seen a severe contraction in demand,media reported. Against this backdrop, however, investors have found solace in digital health, where telemedicine is spreading at a rapid rate.
From telemedicine to telehealth monitoring tools, including listed companies and venture capital investors, there has been rapid growth. In another positive news for these companies, insurers are beginning to include digital health services in their coverage, making consumers more willing to use them.
The U.S. hospital system’s virtual consultation service has suddenly welcomed a large number of users, and Ochsner Health, a medical structure in Louisiana, has provided more than 120,000 virtual counseling services so far this year, compared with 3,300 in the whole of last year.
Jake Dollarhide, CEO of Longbow Asset Management, a remote health consulting firm owned by Teladoc, said: “What was supposed to happen in 10 years’ time suddenly came early. Many businesses are starting to think about how they can save on health care. “
Over the course of that time, Teladoc’s shares rose 48 per cent and the digital health management firm Livongo more than doubled. One Medical, the company that provides home and virtual health services, also rose 52 per cent.
In addition to listed companies, private companies that have not yet done so are booming. Teladoc’s rival, American Well, has just announced a $200m capital raising. Omada Health, which helps patients with chronic diseases, also received $57 million in funding. Virtual mental health has become another hot spot: Mindstrong last week announced $100 million in financing, followed by LifeStance with a $1.2 billion in April.
“This outbreak is like a catalyst for people to start rethinking a lot of things in life, and how to access health care is one of them,” said Brian Cuneo, global co-chair of life sciences and healthcare groups at law firm Latham and Watkins. We see a lot of innovation in this market, as well as a lot of capital. “