Not only has the demand for telehealth services in the last three years increased, according to the IBISWorld market research report, but the demand has also led to an increase in telehealth prices for infrastructure services. IBISWorld predicts that these prices will only increase through 2020. These telehealth price increases are poised to continue as both patients and professionals worldwide are beginning to understand not only the legitimacy, but also the many advantages of services delivered across distance.
In a recent IBISWorld press release quote given by Anna Son, procurement research analyst at IBISWorld, “IBISWorld estimates that there are about 640 firms currently operating in the US telehealth market. Moreover, most operators are small and midsize firms that are privately owned and operated. In the next three years, market share concentration is projected to remain low as new players enter the market, warranting strong price competition.” The press release went on to further quote Son, “In 2017 alone, prices of telehealth services are expected to grow 3.5%. This is because more and more employers are and will be offering more telehealth services to their employees … “to help curb skyrocketing healthcare costs related to employee sickness and absenteeism.”
Telehealth Prices Increase as Telehealth Parity Regulations Fuel Growth
Readers who have been following the TeleMental Health Telebehavioral Health Institute blog are aware that over the past few years, a growing number of U.S. states have passed healthcare regulations As it stands today, 30 states and the District of Columbia now require private health insurance carriers to provide parity for telehealth vs. in-person coverage. Furthermore, during the three year period in which the demand for telehealth services grew, there were also a number of regulatory changes as well with more to come, the release said. More pending legislation promises to bring yet more adoption of telehealth services across the entire spectrum of health service delivery. Son was also quoted as saying, “A rising number of health insurance companies are planning on expanding their coverage for telehealth services. These regulatory changes will help accelerate the integration of telehealth services in healthcare settings, thus leading to anticipated double digit sales growth and rising service rates in the coming years.”