Prior to the outbreak of the coronavirus from China, receiving healthcare through teleconferencing might have sounded like a fringe idea. Today, patients are taking this option seriously. As a result, Teladoc (NYSE:TDOC) stock is worth a second look if you’re considering a telehealth play.
In fact, virtual care has already become a popular alternative to traditional face-to-face healthcare. Teladoc was an early mover in this space. The price of TDOC stock has risen, but there’s still room for growth while the public remains reluctant to venture into hospitals and doctors’ offices.
A Novel Idea
The idea of healthcare through teleconferencing might have seemed outlandish to people just a few months ago. Now, the social-distancing trend has taken hold of America and the world. Many people choose to avoid leaving the house. Plus, they know that clinics and hospitals are breeding grounds for diseases.
Teladoc fulfills people’s desire to receive healthcare services without having to leave their homes. The company can’t provide every service, but you might be surprised at what they can offer. Teladoc’s offerings run the gamut from expert medical services to mental health services, and the company claims that “After a visit, 92 percent of patients reported resolution.”
On Teladoc’s busier days, the company has facilitated literally thousands of patient visits. Skeptics might wonder about the quality of the virtual visits, however. That objection is understandable. Yet, the data surrounding this might surprise you.
As reported via Teladoc, “62% of patients reported the quality of virtual video visits was no different from that of office visits.” That might surprise you. But then, consider the idea of not having to sit for an hour in a waiting room. Think about being able to stay in the comfort of your own home during a doctor’s visit.
It has also been observed that “21% of patients thought virtual visits’ overall quality was better.” That number could certainly increase if clinics and hospitals become more crowded and wait times become longer. Avoiding crowds of people could become a high priority because of the coronavirus.
Demand Is Spiking
Participating in virtual healthcare appears to be on the rise. During the second week of March, Teladoc’s volume of patient visits was 50% greater than it had been in the prior week. Astonishingly, the volume has reached as high as 15,000 daily requested visits.
Experts and regulators seem to be on board with this growing trend. For example, the Centers for Disease Control and Prevention explicitly acknowledged that “Leveraging telemedicine whenever possible is the best way to protect patients and staff from COVID-19.”
Moreover, the U.S. House of Representatives has passed an emergency spending bill that, in crisis situations, permits Medicare reimbursement for tele-health.
Since Teledoc specializes in facilitating virtual healthcare, investors should consider TDOC stock as representative of an emerging trend that’s likely to continue its exponential growth.
The Final Word on TDOC Stock
The coronavirus outbreak has made “social distancing” part of the American and global culture. It is likely to persist long past this year. Many patients don’t seem to mind receiving healthcare remotely. Some even prefer it. Therefore, Teladoc stockholders should be positioned well to capitalize on a healthcare shift that’s most likely just getting started.
Louis Navellier had an unconventional start, as a grad student who accidentally built a market-beating stock system — with returns rivaling even Warren Buffett. In his latest feat, Louis discovered the “Master Key” to profiting from the biggest tech revolution of this (or any) generation. Louis Navellier may hold some of the aforementioned securities in one or more of his newsletters.
