Telehealth Market Shows Double-Digit Growth
October 17, 2014
An estimated eight million children die each year before reaching their fifth birthday, and about 350,000 women die during pregnancy or childbirth. Emerging scourges like the Ebola epidemic in Western Africa and ongoing crises like endemic malaria continue to plague far-flung reaches of the globe. But in a hyper-connected world, telehealth and the provision of simple inexpensive tools and practices can save millions of lives each year, especially in rural, impoverished and remote locations.
According to BCC (News - Alert) Research, telehealth is gaining steam, with the market expected to grow to $43.4 billion by 2019, with a five-year compound annual growth rate (CAGR) of 17.7 percent. The telehome category, the dominant market segment, is surging at a tremendous 24 percent CAGR.
"In the near to midterm, telemedicine technologies offer one of the few ways of enabling healthcare personnel to meet the increased demand for healthcare services without unacceptable delays or service rationing," said BCC Research healthcare analyst Andrew McWilliams. "The growing adoption of telemedicine services is expected to significantly impact larger markets such as healthcare, health insurance, home care, telecommunications (telecom), networking, disease management, e-health and healthcare IT."
The telehospital/clinic market category, which comprises services that are provided within or between hospitals, clinics or other healthcare providers, is expected to reach $19.5 billion in 2019 and register a CAGR of 12 percent.
However, the telehome category, which means healthcare providers offering teleservices to the outpatient at home, is forecast to jump from just $6.5 billion in 2013 to nearly $24 billion in 2019. Consequently, this segment is expected to increase its share of the market from 40% in 2013 to 55 percent by 2019.
Implementation of the Affordable Care Act in the U.S. has intensified this focus by increasing the number of people with health insurance and seeking medical services, the firm noted.
New contracts continue to be inked. Windstream (News - Alert) for instance has been awarded a four-year telehealth contract valued at $1.1 million by the Michigan Department of Military and Veterans Affairs. Windstream, via a systems integrator partner, will deliver a virtual LAN Service (VLS) network to connect Michigan's DMVA telehealth initiative, which features 13 local clinics and one medical health center, with the aim of improving veteran patient care and enabling its locations to transmit medical files, share digital imaging and offer teleconference consultations.
Edited by Alisen Downey
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