June 30, 2020
In response to the COVID-19 pandemic, the Centers for Medicare & Medicaid Services (CMS) announced on March 17, 2020, that they would be expanding telemedicine benefits so the elderly may communicate with care providers from home. While it is too early to tell, we may look back on this ruling as the moment when telemedicine fully entered the mainstream.
Once seen as a haven for male enhancement products and other forms of “fringe” wellness solutions, today’s telemedicine market encompasses a wide array of remotely accessible clinical services. The most prominent example? Systems that allow doctors, physician's assistants, nurses, pharmacists, and other healthcare professionals to “see patients” via phone, video chat, messaging, or email.
But telemedicine goes beyond virtual visits with caregivers. Today it includes the use of mobile devices and applications such as activity trackers and sensors for monitoring fitness, body temperature, glucose levels, and heart rates. Most importantly, telemedicine also includes direct to consumer services, including home delivery of medical supplies and prescription drugs.
The Current State of Telemedicine
Depending upon your point-of-view, telemedicine is either replacing the traditional doctor’s office visit outright, or powerfully augmenting the medical community’s ability to promote healing and well-being, especially with underserved populations. Market research suggests that these conclusions are anything but mutually exclusive.
According to the 2019 UnitedHealthcare Consumer Sentiment Survey, 85 percent of Americans would consider using telemedicine services if they were to be provided at an affordable cost. And, while a J.D. Power survey finds consumers have been slow to adopt these services, UnitedHealthcare’s data reveals that 51 percent of companies view virtual solutions as a top health priority. Why? The same J.D. Power survey respondents who utilize telemedicine report very high rates of patient satisfaction.
Either way, telemedicine is no fad. MarketWatch expects the U.S. market for remote clinical services, already an industry worth close to $12 billion, to be valued at nearly $64 billion by 2025. Advances in mobile technology, the growing prevalence of chronic illnesses (e.g., diabetes), and persistent concerns over rising healthcare costs will drive much this economic expansion. But it will also be a matter of federal policy.
Over the past decade, dozens of rural hospitals in the U.S. have closed, and shortages of general practitioners have created healthcare deserts across the country. In response, the FCC and U.S. Department of Health and Human Services have been ramping up efforts to improve broadband access across America. Will subsidies for providers and insurers follow? If so, they will only further incentivize the adoption of telemedicine models.
What the Success of D2C Models Tells Us About Telemedicine
In one recent television commercial, an attractive young man admits he is too embarrassed to discuss erectile dysfunction with his doctor. Much to his relief, however, he discovers he can get counseling and medications online. You don’t have to read between the lines here. Consumer behavior is driven in part by self-image, and cultural norms surrounding masculinity require men to be strong and virile. D2C personal care products for men have taken off, in part, because they save their customers from embarrassment.
D2C brands offer the assurance of anonymity, alleviating the discomfort many men feel discussing personal health problems in person. Studies suggest that as many as 65 percent of men avoid going to the doctor for as long as possible, and, that when they finally make an appointment, almost 40 percent withhold information from their physician. So, it should come as no surprise that brands in this space continue to blur the lines between medical supplies and personal care products, from hair-loss remedies to weight management plans.
But D2C is expanding beyond “guy stuff.” In another recent commercial, an animated package dances around a bathroom touting the simplicity of DIY colorectal cancer screening. Regardless of gender, consumers want convenience and comfort when it comes to health screenings. The arduous preparation and time off from work required for colonoscopies, pelvic exams, and the like cause many to delay these critical procedures. Given a choice, many patients are choosing these less invasive options.
Other parts of the traditional healthcare arena are seeing its impact as well. Orthodontists, for example, are facing increasing competition from online teeth-straightening products. While the quality is still up for debate, the low costs and convenience are keeping companies like Candid and SmileDirectClub thriving.
How Bright is Telemedicine’s Future?
Consumers have come to expect that businesses will rapidly adopt the latest technologies. Healthcare providers are not exempt from this expectation. While personal doctor-patient relationships and office visits are not going away any time soon, more and more patients prefer to make remote appointments for common ailments that may not require in-person diagnoses.
Furthermore, and as the COVID-19 outbreak highlights, telemedicine can have a positive impact on community health. Keeping people from crowding into waiting rooms has proven critical to maintaining social distancing and slowing the spread. Future public health policies may make telemedicine the only option during epidemics.
Demographic trends also favor telemedicine. The majority of Millennials and Gen Zers want more rather than fewer self-service options. The results of a recent survey conducted by Software Advice revealed that 84 percent of respondents said they were somewhat more likely, or much more likely, to choose a provider that offers telemedicine over one who does not. And our own recent surveys have concluded that consumers intend to incorporate telemedicine more into their lives in the aftermath of the COVID-19 lockdown.