Telehealth

More important now than ever, telehealth will long outlast the pandemic that drove its growth.

Overview

Affordable healthcare delivered remotely

Telehealth refers to the application of healthcare and health-related services via phone and online platforms. Especially in the US, the traditional healthcare care system has long been plagued with escalating issues of cost and accessibility. Telehealth tools supplement the traditional healthcare care systems, thereby adding value to major stakeholders in the greater healthcare ecosystem, including providers, patients, payors, hospitals, and the government.

Telehealth uses four main types of models to deliver services: 1) general telemedicine; 2) specialized telemedicine; 3) asynchronous store and forward services; and 4) remote patient monitoring services. These service delivery models often complement one another, and in practice can be used in conjunction to deliver remote care to patients.

What's driving this industry?

Industry Updates

Alpha Medical raises USD 24 million in Series B funding
Sep 22
Pager raises USD 70 million in Series C funding
Sep 21
eVisit raises USD 45 million in Series B funding
Sep 21
View all updates
Market Sizing

The US telehealth market to reach USD 20-36 billion by 2025

Conservative case

USD 19.6 Bn

36% penetration
Base case

USD 29.2 Bn

54% penetration
Expansion case

USD 35.8 Bn

66% penetration
USD billion510152025303540202020212022202320242025
View details

COVID-19 IMPACT

Teladoc visits grew by 206% YoY in Q3 2020 to 2.8 million.

MDLIVE visits increased by more than 95% YoY during the first half of 2020, compared to 45% average growth over the past five years.

Amwell visits jumped 450% YoY to reach 1.4 million in Q3 2020.

98point6 reported a 274% YoY surge in memberships in October 2020. 

Doctor on Demand virtual visits reached nearly 3 million by July 2020, up from 2019’s projection of 2 million.

Market Mapping

While the main incumbents have enjoyed a stronger presence in the telehealth space for more than a decade, the industry’s leading disruptors have successfully increased their foothold in the market, thanks to their growing user network. Most disruptors are heavily concentrated on the telemedicine segment, given its popularity of facilitating live consultations as an alternative to physical doctor visits. This is followed by the remote patient monitoring segment due to the high prevalence of chronic conditions.  

Incumbents
Growth
Early
Seed
Pre seed
General Telemedicine
?
Specialized Telemedicine
?
Asynchronous Store and Forward Service
?
Remote Patient Monitoring Services
?
Technology Service Providers
?
Optimize.health
Optimize.health
Optimize.health
Optimize.health
Optimize.health
Teladoc Health
Amwell
MDLive
ZocDoc
Amazon
Optum
Verizon
Bright HealthCare
Babylon Health
KRY
Grand Round
K Health
98point6
Doctor On Demand
Heal
TytoCare
HealthHero
CloudMD
Solv
HealthTap
Buoy Health
Telemedico
MeMD
LiveHealth Online
Dialogue
CirrusMD
SteadyMD
PlushCare
Recuro Health
Nice Healthcare
Rocket Doctor
Cura Digital Health Solutions
Akos
SOC Telemed
Numan
Vesta Healthcare
Folx
Heartbeat Health
Third Eye Health
Grin
Plume
Twentyeight Health
Gennev
Elektra Health
Hey Jane
Nest Collaborative
Best In Class MD Inc (BICMD)
Certintell
Tembo Health
CurieMD
Winston
Ro
Hims
Lemonaid Health
NowRx
RubiconMD
Manual
Alpha Medical
Sitka
Virtuwell Online Clinic
Felix
Hinge Health
Virta Health
Glooko
Eko
Current Health
Health Recovery Solutions
Medocity
Biotricity
Vitls
Accuhealth Technologies
Heartbeat Health
Optimize.health
Physera
VitalTech
Quil Health
Elastic Care
100Plus
Babyscripts
Harmonize Health
PaceMate
Marani Health
Berkshire Biomedical
19 Labs
Cliexa
OpenTeleHealth
Amicomed
Telemetrix
Alertive Healthcare
AssayMe
Bamboo Health
Unite Us
Pager
Rightway Healthcare
DrChrono
Cloudbreak Health
PatientPoint Health Technologies
Medici
ixlayer
Bright.md
eConsult
Commure
GYANT
DexCare
Garner Health
Lifelink Systems
Medxoom
OhMD
Hifinite Health
Simply Speak
Healthie
Anytime Pediatrics

The Disruptors

Babylon Health is the leading disruptor in general telemedicine 

While a few large telehealth companies have existed since the early 2000s, the industry has attracted a host of new startups beginning in the early-to-mid 2010s. Venture capital funding for telemedicine companies surged in H1 2021—up to USD 4.2 billion from USD 1.7 billion in 2020—due to the rising popularity of virtual delivery methods brought about by the Covid-19 pandemic. 

For investors, Babylon Health and Kry are among the largest disruptors in the general telemedicine segment having raised USD 631 million and USD 569 million, respectively, as of August 2021. Both companies have an international presence including the US and UK. 

Hims and Ro are key players in the asynchronous store and forward service segment, both serving similar markets with comparable business operations. For startups focused on chronic disease management, Hinge Health and Virta Health are among the largest disruptors in the remote patient monitoring segment while acute care telemedicine provider, SOC Telemed, is a key player in the specialized telemedicine space.

General Telemedicine

?

Disruptors

?
Funding in USD Millions
Babylon Health
631
KRY
569
Grand Round
272
K Health
271
98point6
247
Doctor On Demand
236
Heal
164
TytoCare
157
HealthHero
151
CloudMD
100
Solv
95
Dialogue
89
HealthTap
88
Buoy Health
63
CirrusMD
48
SteadyMD
35
PlushCare
31
Telemedico
7
MeMD
Unknown
LiveHealth Online
Unknown
Watchlist
?
Recuro Health
Nice Healthcare
Rocket Doctor
Cura Digital Health Solutions
Akos

Specialized Telemedicine

?

Disruptors

?
Funding in USD Millions
SOC Telemed
Public - Market cap USD 266.3 mn
Vesta Healthcare
105
Numan
53
Folx
29
Plume
14
Watchlist
?
Heartbeat Health
Grin
Third Eye Health
Twentyeight Health
Gennev
Elektra Health
Hey Jane
Nest Collaborative
Best In Class MD Inc (BICMD)
Certintell
Tembo Health
CurieMD
Winston

Asynchronous Store and Forward Service

?

Disruptors

?
Funding in USD Millions
Hims
Public - Market cap USD 1.6 bn
Ro
876
Lemonaid Health
57
NowRx
56
RubiconMD
38
Manual
37
Alpha Medical
35
Sitka
22
Felix
10
Virtuwell Online Clinic
Unknown

Remote Patient Monitoring Services

?

Disruptors

?
Funding in USD Millions
Biotricity
Public - Market cap USD 147.1 mn
Hinge Health
426
Virta Health
373
Glooko
101
Eko
96
Current Health
92
Health Recovery Solutions
87
100Plus
40
Babyscripts
32
Medocity
19
Optimize.health
19
Harmonize Health
14
Physera
11
PaceMate
8
Marani Health
5
VitalTech
Unknown
Quil Health
Unknown
Accuhealth Technologies
Unknown
Watchlist
?
Heartbeat Health
Berkshire Biomedical
19 Labs
Cliexa
OpenTeleHealth
Amicomed
AssayMe
Vitls
Elastic Care
Telemetrix
Alertive Healthcare

Technology Service Providers

?

Disruptors

?
Funding in USD Millions
Commure
542
Unite Us
195
PatientPoint Health Technologies
140
Pager
133
Rightway Healthcare
130
Medici
93
ixlayer
75
DrChrono
61
Bright.md
29
Cloudbreak Health
25
GYANT
23
DexCare
20
Garner Health
16
eConsult
16
Lifelink Systems
13
Medxoom
11
Watchlist
?
OhMD
Hifinite Health
Simply Speak
Healthie
Anytime Pediatrics

Babylon Health

Babylon delivers access to healthcare for many acute, chronic, and psychological conditions, including personalized health assessments, activity tracking, treatment advice and 24/7 face-to-face appointments with a doctor. It leverages artificial intelligence (AI) in assisting practitioners to diagnose the conditions of patients and has developed many AI-based health services, including the chatbot used by the National Health Service in the UK to diagnose the ailments of patients.

Babylon has partnerships with Tencent (to tap into the Chinese market), TELUS (to offer services in Canada), and also offers services in the US, Rwanda, and multiple countries in Asia and the Middle East. It also offers end-to-end clinical services in the UK, Rwanda, and Canada. As of May 2021, Babylon Health has served over 24 million patients across the US, Canada, Europe, Africa, and Asia. Annual membership costs GBP 149 (USD 192), but it also offers the opportunity to schedule one-off appointments. A general, one-off consultation is priced at GBP 39 (USD 50) per visit and GBP 49 (USD 63) per specialist visit.

Babylon raised USD 550 million in a Series C funding round led by Saudi Arabia Public Investment Fund in August 2019, bringing the total funding to USD 635.3 million and valuing the company over USD 2 billion as of September 2020. The funds raised were expected to be used for its expansion in the US and Asia, and funding its research to diagnose more serious chronic conditions.

Babylon Health’s revenue grew by 400% YoY in 2020 and the company expects the revenue to increase by 300% YoY in 2021. In March 2021, Babylon announced it is planning to sell its Canadian operations to former partner Telus Health. Telus has reportedly signed a multi-year licensing deal estimated at around USD 70 million with the intention of using Babylon’s technology after taking control of operations. In addition, Babylon Health is reportedly in talks to go public through a merger with Alkuri Global Acquisition Corp., a special purpose acquisition company. The transaction is to be completed during H2 2021 and the combined entity will trade under the ticker symbol “BBLN”. The deal will set the equity value of the new entity at USD 4.2 billion. 

Segment:
General Telemedicine
Total funding:
USD 631.1 million
Competitors:
HealthHero, Now Healthcare Group, Dialogue
Disruptor Funding History

General Telemedicine:

Babylon Health
KRY
Grand Round
K Health
98point6
Doctor On Demand
Heal
TytoCare
HealthHero
CloudMD
Solv
Dialogue
HealthTap
Buoy Health
CirrusMD
SteadyMD
PlushCare
Telemedico
Recuro Health
Nice Healthcare
Rocket Doctor
Cura Digital Health Solutions
Akos

Specialized Telemedicine:

SOC Telemed
Vesta Healthcare
Numan
Folx
Plume
Heartbeat Health
Grin
Third Eye Health
Twentyeight Health
Gennev
Elektra Health
Hey Jane
Nest Collaborative
Best In Class MD Inc (BICMD)
Certintell
Tembo Health

Asynchronous Store and Forward Service:

The Incumbents

Well established, long-standing telehealth players continue to strengthen by leveraging scale

Among the incumbents of telehealth, hospitals have been quite active in implementing telehealth facilities as part of their wider healthcare delivery system. Telehealth adoption among hospitals has increased substantially over the years with more than three-quarters of the hospitals in the US having adopted telehealth either fully or partially in 2017—a significant increase from 35% in 2010. In 2019 alone, 106 hospitals and health systems adopted telehealth in some form.

Early entrants to the telehealth industry (in the 2000s) are also considered incumbents, as they are now well established and much larger in scale thanks to their substantial funding. Several of these big players have resorted to M&As in addition to the pursuit of aggressive customer acquisitions in their legacy businesses.

Acquisition

In-house Product Development

Partnership

Investment

Teladoc Health
check
check
check
Amwell
check
check
check
MDLive
check
check
check
ZocDoc
check
Amazon
check
Bamboo Health
check
check
Optum
check
check
Verizon
check
check
Bright HealthCare
check
check
Teladoc Health

Teladoc Health is one of the well-established and leading players in the US telehealth market and is considered to be the first to enter the telehealth business in the country with its formation in 2002. Recently, the company has expanded into other related virtual healthcare services, such as mental health and expert medical consultation, through a series of acquisitions over the years. The recent acquisitions include, Betterhelp (a telepsychiatry company, founded in 2013) in 2015, Best Doctors (a world leading provider of expert medical consultation, founded in 1989) in 2017, Advance Medical (a leading expert medical care provider, founded in 1999) in 2018, and InTouch Health (a leading provider of enterprise telehealth solutions, founded in 2002) in early 2020 in a USD 600 million deal.

The company operates through a business-to-business (B2B) model by establishing partnerships with employers (comprising of 40% of the Fortune 500 companies), hospitals (currently around 300 hospitals) and health plans (currently over 50 health plans) and insurance companies (currently over 70 global insurance companies), covering their employees, patients, and benefactors. In addition, it also operates through a business-to-consumer (B2C) model for its mental health business. The paid membership base currently stands at around 51.5 million (as of June 2020).

The company was listed was listed on the New York Stock Exchange (NYSE) through an IPO in 2015 and remains the only publicly listed telehealth player in the US with a market of USD 15 billion (as of June 2020). The Covid-19 pandemic has significantly benefited the company’s stock driven by the focus shift towards remote healthcare necessitated by social distancing.

Notable Investors

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