United States Healthcare Virtual Visits Market Analysis
Virtual visits are helpful resources for the ongoing treatment and monitoring of chronic illnesses. To solve the country’s current health problems and provide patients with high-quality, convenient care, virtual visit services and technologies can be used. The leading companies in the virtual visit market are Teladoc Health, American Well, and AMD Global Telemedicine.
The use of telehealth services is growing, and platforms for virtual visits are also becoming more popular. For members of the Health Action Council, the virtual visit doubled between 2017 and 2019. The prevalence of chronic diseases including diabetes, hypertension, and other disorders is on the rise, which has an impact on the market expansion.
Impact of COVID-19 Pandemic
People have turned to virtual visits for medical and behavioral care throughout the COVID-19 pandemic due to convenience, simplicity of scheduling, and a desire to avoid crowded waiting rooms. It is anticipated that about 83% of patients will use virtual care even after the pandemic.
While the overall number of in-person visits decreased sharply at the beginning of the pandemic, the number of virtual visits rose sharply. Due to the total lockdown and the need for healthcare, particularly mental health, virtual care swiftly became a crucial part of the delivery of care in 2020. It is believed that the increase in reimbursements and simplicity of laws for telehealth services are to blame for the quick increase in the acceptance of virtual visits.
Due to poor reimbursement and poor internet connectivity, the use of virtual visits remained minimal before the COVID-19 epidemic. From 14,000 virtual visits in 2019 to 3.1 million in 2020, there was a more than 200-fold increase. With the increase in COVID-19 cases in 2020, 53% of US patients reported being happier with live video conversations compared with earlier in-person interactions.
Increasing Implementation of Telehealth Kiosks in U.S. Hospitals
Due to increased support for vendors selling telehealth kiosks, the United States is heavily adopting Wi-Fi-enabled telehealth kiosks in their hospitals, which has created opportunities for the market for virtual visits to grow. A telehealth kiosk is a private, stand-alone virtual exam room that is furnished with a variety of medical tools, including thermometers, pulse oximeters, blood pressure cuffs, and more.
Virtual Hospitals: Future of Healthcare
By minimizing hospital visits, patient wait times, and physical discomfort for patients, virtual visits have revolutionized the healthcare sector. Due to its many advantages, virtual healthcare is increasingly being used by many healthcare facilities. Patients, physicians, and hospitals can all benefit from virtual hospitals. As the first and only facility of its kind, the US-based Mercy Virtual Care Center is the best example of a virtual hospital.
Segment Insights
Component
With the largest income of USD 3.91 billion in 2021, the service segment is the one that is expanding the fastest by component, while hardware and software have brought in USD 1.15 billion. Several vendors provide a wide variety of services in different areas. The healthcare providers’ services are available both on a scheduled visit basis and on-demand basis. The services have been widely used in the nation and are anticipated to pick up steam in the US shortly.
Application
With revenue predicted to reach USD 1.47 billion in 2021 and a CAGR of 26.74%, general consultation is the segment expected to develop at the quickest rate. The US was the most severely affected nation during the pandemic, and there was a total lockdown there. In the US, there have been more virtual visits as a result of concern over contracting COVID-19 in hospitals.
Because of the rising older population in the US, there are more cases of mental health concerns than ever before, which is why the behavioral health segment is anticipated to develop at the fastest rate throughout the projected period with the highest CAGR of 28.53%. Additionally, there are more and more programs to encourage virtual visits for mental health.
As a result, it is anticipated that it will expand quite quickly. Virtual visits for sexual and reproductive health are the least desired service due to insufficient insurance coverage. For this specialty, several platforms do not take Medicaid or other kinds of government insurance.
Patient Group
Adults are the sector with the fastest rising population due to their expanding use of virtual visits. The need for virtual visits has increased as a result of an aging population and a growth in chronic diseases. Adults in the US use virtual visit platforms and services at a very high rate because of the country’s excellent IT infrastructure, decent internet access, awareness, and the fact that the majority of insurance plans pay for the majority of specialist visits.
Many businesses pay for their employees’ visits, working with virtual visit providers to do so. The pediatric category is anticipated to expand quickly during the projection period, with a CAGR of 28.62%.
Health Plans
The commercial or private health plan segment had the most revenue in 2021, totaling USD 2.50 billion, and is anticipated to expand at a CAGR of 28.59%, which is a very strong rate. In 2019, about 68.0% of the population had private health insurance, compared to 34.1% who had public insurance.
The most popular variety has historically been employer-based insurance. In most Medicaid programs, telehealth-delivered services are reimbursed at the same rate as in-person services. From April 2020 to December 2020, the Medicaid reimbursement for online visits increased by 8.64% in comparison to that for phone calls.
Between 2018 and 2019, the number of Americans without health insurance rose in 19 states. In comparison to 2010, the uninsured rate decreased across the board in all 50 states and the District of Columbia in 2019. From 55.2% in 2018 to 55.4% in 2019, the proportion of people receiving employer-provided insurance was somewhat higher.
Vendor’s Activities in the Market
Key companies in the market, such as AMD Global Telemedicine, American Well, and Teladoc Health, are extremely fragmented and active.
- Vendors are highly engaged in expansion activities to strengthen their position in the US.
- Forging partnerships and collaborations with well-established manufacturers cementing the footprints of the players.
- Vendors are highly focused on inorganic growth through mergers and acquisitions.
- A diverse range of virtual visits platforms, software, application, and other integrated devices and service support is offered
- The market is experiencing a surge in product launches and technological advancements.
- Vendors are highly investing in developing integrated software & hardware or connected devices and software.
- Key vendors operating in the market have shown the potential to provide reliable healthcare platforms to a large pool of patients at low cost or even zero cost per visit with the qualifying insurance plan in the US, depending on the type of visit.
- Several new start-up companies are entering the market with increased funding.
- The key players are making huge R&D investments and developing innovative products.
- Leading companies are taking several initiatives to keep the market competitive. For example, American Well and Teladoc Health are forming business models that blend in-person and virtual, synchronous & asynchronous, human-driven, and automated into a hybrid care model.
Market Dynamics
Premium Insights
- Virtual Visits Status in the US Between 2019 and 2021 & Beyond
- Declining Telehealth Adoption Rate of Late COVID-19 Pandemic Visits
- Snapshot of Telehealth in the US
- Reimbursements for Virtual Visits/Care in Response to COVID-19 Pandemic
Market Opportunities & Trends
- Use of Virtual Visit Consultations in Pediatric Treatment
- Introduction of Automated Virtual Primary Care
- Increasing Use of Telehealth Kiosks
- Emerging Connected/Smart Integrated Devices
- Increasing Strategic Partnerships and Mergers/Acquisitions
Market Growth Enablers
- Increasing Funding Toward Virtual Visits Platforms
- Emergence of New Business Models in Healthcare
- Increasing Reimbursements by Insurers and Governments for Virtual Visits
- Chronic Disease Management Through Virtual Visits
Market Restraints
- Lack of Access to Fixed Internet Service
- Data Security and Privacy Risks
- Legal Barriers & Lack of Standard Regulations
Key Vendors
- AMD Global Telemedicine
- American Well
- Koninklijke Philips
- Teladoc Health
