The pandemic of COVID-19 has contributed to an explosive rise in demand for telemedicine services. As one of the industry leaders, Teladoc Health Inc. (TDOC) has been the big beneficiary of this demand. The company’s shares have risen by more than 136 percent since the start of the year, and the TDOC share was worth $198.26 at ring of the bell on Tuesday.


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There was speculation that the pandemic would soon end as reports of promising trials of coronavirus vaccines started to be released. The success story of several enterprises, which took off in 2020, is predicted to end with the end of the pandemic. For Teladoc Health, how fair is this assumption?

In the United States, Teladoc Health is the industry leader in telemedicine services. The platform reported a sharp rise in visits as soon as patients were encouraged to cancel visits to medical centers. The company’s revenue rose 63 percent year-on-year in the first half of the year. Development is increasingly stabilizing, however. Teladoc Health announced an increase in visits of less than 3 percent in the third quarter compared to the second quarter. Investors should not be afraid of a serious fall, however. Even following the end of the pandemic, telemedicine services will continue to be popular.

Earlier this year a McKinsey survey found that 76% of consumers are strongly or moderately likely to continue to use telemedicine services. Last year’s survey on this subject showed, for comparison, that only 11 percent want to continue using telemedicine. Telemedicine services are well received: about 74 percent are pleased with the quality of service, according to surveys. In addition, individuals like the fact that they can stop waiting for a long time in a queue and get the necessary advice quickly instead.

It is critical that other stakeholders, insurance providers and employers who enter into contracts with Teladoc Health to provide their customers and employees with services, positively view telemedicine. The primary explanation is that the cost of medical treatment is minimized by telemedicine. McKinsey reports that it is possible to virtualize about 20 percent of expenses on Medicare, Medicaid, outpatient treatment, and visits to medical centers. This represents a massive opportunity of $250 billion. Also after the pandemic, the rising usage of Teladoc health services would help the business sustain high growth rates. A significant driver of future growth would also be expanding Medicare and Medicaid coverage. 2.5 million Medicare Advantage participants have now been added by Teladoc Health.

Several major acquisitions were made by Teladoc Health. InTouch’s acquisition thus opened up access to a corporate network that, among other items, the company will sell to hospitals and medical centers to provide doctors with virtual consultations. Teladoc Health has not yet started to report new business sales, but said the platform launched almost a million sessions in the third quarter, a number that is increasing rapidly.

The recently concluded merger of Teladoc and Livongo also gives patients great value. Livongo’s chronic disease management tools will be incorporated into the Teladoc Health platform, making it a full-fledged delivery framework for health care.

Thus the viewpoints of Teladoc Wellbeing are not specifically impacted by the pandemic. The importance of the business lies in having the greatest possible number of patients with the most common services. The long-term outlook of Teladoc Health Inc. (TDOC) further supports the present market leadership position.

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