The virtual care market in the United States has become a key player in the healthcare industry, experiencing remarkable growth and significantly contributing to the revenue of hospitals. According to reports from Precedence Research, the U.S. virtual care market was valued at US$5.6 billion in 2022 and is anticipated to reach approximately US$76.31 billion by 2032, exhibiting a remarkable Compound Annual Growth Rate (CAGR) of 29.9% from 2023 to 2032.
The growing elderly population in the United States has led to an increased prevalence of chronic diseases such as cardiovascular diseases, cancer, diabetes, and respiratory diseases. Virtual care involves treating patients for everyday health issues through video, audio, or written communication. This form of healthcare, also known as virtual visits, connects patients and healthcare providers in real-time, overcoming geographical barriers and improving accessibility.
The acceptance of virtual consultations has surged, leading to an increase in user adoption rates from 11% to 46% within a year. Telemedicine has proven to be a cost-effective solution, maximizing patient reach at minimal expense. The demand for remote patient monitoring and the necessity to provide efficient, high-quality healthcare services at affordable prices are key factors driving the growth of virtual care services.
The COVID-19 pandemic has accelerated the adoption of virtual care services globally. With healthcare systems balancing the risk of COVID-19 infection and the consequences of delayed treatment, virtual care has become a crucial tool for delivering medical services while minimizing contact costs. This shift has been reflected in the substantial revenue growth of companies like Teladoc Health Inc. and American Well Corporation during 2020.
In January 2020, Teladoc Health Inc. expanded its telemedicine offering by acquiring InTouch Health.
American Well Corporation raised US$194 million in May 2020 to meet the rising demand for remote healthcare services.
Health system Mercy's groundbreaking facility makes robust use of telehealth and remote patient monitoring – and has the results to prove the model's success.
TytoCare and St. Luke’s Health System announced an exclusive partnership to provide accessible, high-quality remote primary care, leveraging TytoCare’s Home Smart Clinic. TytoCare's Home Smart Clinic, offering remote physical exams with a doctor, aims to bring clinical quality to families, especially in rural and underserved communities. St. Luke’s Health Plan, in partnership with TytoCare, will provide TytoHome kits to its members beginning in 2024, contributing to the health system's commitment to removing barriers to care.
The surge in virtual care services indicates a transformative shift in healthcare delivery, driven by technological advancements and the necessity for accessible and cost-effective medical solutions. As the virtual care market continues to expand, hospitals embracing these innovations are poised for sustained revenue growth, ensuring the delivery of quality healthcare to an increasingly diverse and aging population.