Professional Documents
Culture Documents
OD5775 Telehealth Services Industry Report
OD5775 Telehealth Services Industry Report
OD5775 Telehealth Services Industry Report
WWW.IBISWORLD.COM
Stephen Morea
18 International Trade
Industry Definition
19 Business Locations
Main Activities
Similar Industries
21 Competitive Landscape
31 Industry Data
Additional Resources
31 Annual Change
31 Key Ratios
4 Industry at a Glance
30 Industry Assistance
31 Key Statistics
5 Industry Performance
23 Barriers to Entry
Executive Summary
24 Industry Globalization
Current Performance
25 Major Companies
Industry Outlook
25 GlobalMed
28 Operating Conditions
14 Supply Chain
28 Capital Intensity
16 Demand Determinants
29 Revenue Volatility
16 Major Markets
WWW.IBISWORLD.COM
Main Activities
Similar Industries
WWW.IBISWORLD.COM
Additional Resources
IBISWorld
WWW.IBISWORLD.COM
Industry at a Glance
Telehealth Services in 2014
Key Statistics
Snapshot
Revenue
Profit
Wages
Businesses
$320.2m 30.7%
49.7%
$136.3m 417
$52.8m
GlobalMed
12.0%
% change
InTouch
Technologies Inc.
10.0%
80
12
60
40
% change
Market Share
20
0
6
3
0
3
20
Year 06
08
10
Revenue
12
14
16
18
Year
20
07
09
11
13
15
17
19
Employment
SOURCE: WWW.IBISWORLD.COM
p. 25
12%
Private investment in
computers and software
13%
Medical education
Exchange of medical
and health information
Number of adults
aged 65 and older
Federal funding for
Medicare and Medicaid
40%
Transmission of medical
data and images for diagnosis
35%
Remote patient
monitoring and follow-up
Prime rate
p. 5
SOURCE:
WWW.IBISWORLD.COM
SOURCE:
WWW.IBISWORLD.COM
Industry Structure
Growth
Very High
Regulation Level
Technology Change
Capital Intensity
Low
Barriers to Entry
Industry Assistance
Low
Industry Globalization
Concentration Level
Low
Competition Level
FOR ADDITIONAL STATISTICS AND TIME SERIES SEE THE APPENDIX ON PAGE 31
Medium
High
Medium
Low
Medium
WWW.IBISWORLD.COM
Industry Performance
A dvances
in communication technology
and medical technology have driven
industry revenue
which electronic devices transmit patient
health information to healthcare providers;
and store-and-forward technologies, which
transmit digital images, such as X rays,
computerized tomography (CT) scans and
video clips between primary care providers
and medical specialists. Technology serves
as the backbone of this industry, and
therefore, advancements in medical
technology and telecommunications will
drive industry performance.
The Telehealth Services industry is
rapidly expanding. Advances in
Private investment in
computers and software
The level of private investment in
computers and software reflects the
general implementation of information
technology within the private sector.
Growth in the Telehealth Services industry
is largely determined by technological
expansion. For example, advancements in
communications, such as mobile devices
and high-speed networks, have improved
audio and video transmission between
patients and healthcare providers.
WWW.IBISWORLD.COM
Industry Performance
3.5
3.0
% change
% change
3
0
2.0
1.5
Year
2.5
07
09
11
13
15
17
19
1.0
Year
07
09
11
13
15
17
19
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
Current
Performance
Technology advances
industry
Self-monitoring
tools
allow patients to
transmit their results to
healthcare providers
Smartphones and tablets are
increasingly replacing conventional
record-keeping systems, offering
healthcare providers greater ease in
accessing, storing and sending
information. Advancements in store-andforward technology has allowed X rays,
MRIs, CT scans, CAT scans and audio
and visual observations to be digitally
stored and instantaneously shared.
Advancements in telecommunications
and videoconferencing equipment have
also enhanced real-time communication,
allowing physicians and specialists to
confer across great distances, promoting
proper patient diagnosis and treatment.
Additionally, peripheral devices can be
attached to computers, mobile robotics
and other equipment to aid in diagnoses.
Direct two-way audio and video
streaming between health centers has led
to lower costs in these critical areas of
health treatment.
Self-service kiosks have also been
implemented in some hospitals. These
kiosks can expedite processes like hospital
WWW.IBISWORLD.COM
Industry Performance
Technology advances
industry
continued
Research validates
efficacy of telehealth
Industry structure
Studies
have validated
the cost-effectiveness
and overall success of
telehealth services
WWW.IBISWORLD.COM
Industry Performance
Industry structure
continued
Industry
Outlook
Industry revenue
80
% change
60
40
20
0
20
Year 06
08
10
12
14
16
18
20
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Performance
An aging population
boosts revenue
Pending legislation to
benefit industry
Industry
services will
offset the projected
shortage of physicians
WWW.IBISWORLD.COM
Industry Performance
Pending legislation to
benefit industry
continued
WWW.IBISWORLD.COM
Industry Performance
Industry value added is expected to grow at a
much higher rate than the overall economy
Telehealth Services
20
Maturity
Quality Growth
Company
consolidation;
level of economic
importance stable
15
10
Quantity Growth
Decline
-5
Shrinking economic
importance
-10
-10
-5
10
15
20
WWW.IBISWORLD.COM
Industry Performance
industry
is G
rowing
WWW.IBISWORLD.COM
Supply Chain
62111a
62111b
62134
62161
62211
Hospitals in the US
General medicine and surgical hospitals accept patient referrals from, and contract with,
telehealth services.
62221
62311
33421
51121
51711c
51711d
51821
WWW.IBISWORLD.COM
12%
13%
Medical education
Exchange of medical
and health information
40%
35%
Remote patient
monitoring and follow-up
Total $320.2m
a lag in outfitting consumers with the
technology on their end to accommodate
such treatment.
Remote patient monitoring
and follow-up
Remote patient monitoring and followup is expected to account for 35.0% of
industry revenue. Services in this
segment include the remote collection
and sending of data to a remote
diagnostic testing facility for analysis.
These services can be used as a substitute
or to supplement visiting nurses for data
such as blood pressure, blood glucose or
heart ECG. This segment is expected to
increase over the current period, with
hospital beds consistently being at or
near capacity for patients requiring more
intensive care.
Exchange of medical and
health information
The exchange of medical and health
information is estimated to account for
13.0% of industry revenue in 2014. Such
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Demand
Determinants
Major Markets
Demographics
Industry revenue is also driven by a
variety of demographic and
Government regulations
The Patient Protection and Affordable
Care Act is bolstering health insurance
coverage for Americans and, therefore,
demand for industry services. As more
Americans are being covered by health
insurance, there will be a greater number
of patients demanding medical attention.
Telehealth services enable physicians to
care for more patients through remote
visits during daily rounds. Additionally,
Medicare and Medicaid cover many
mental health services, increasing
demand for covered Americans for
such treatment.
WWW.IBISWORLD.COM
Major Markets
continued
7.4%
4.1%
Mental health
Hypertension
1.8%
Other
43.7%
15.9%
Chronic obstructive
pulmonary disease
27.1%
Total $320.2m
Diabetes
Diabetes
Diabetes is a chronic disease in which a
person has a high amount of glucose in
their blood. There are three primary types
of diabetes: Type 1 or insulin-dependent
diabetes is a result of the body not
producing insulin and is treated with
insulin injections; Type 2 diabetes is a
result of the body being resistant to the
insulin that the body produces; and
gestational diabetes can occur in pregnant
women who develop a high level of sugar
in their blood. These women have had no
prior diagnosis of diabetes; however,
gestational diabetes can be a precursor of
Type 2 diabetes. Telehealth services allow
diabetes patients to have insulin levels
monitored by their doctor from a remote
location. Diabetes is expected to account
for 27.1% of industry revenue. Over the
past five years, this segment has increased
as Americans have been eating diets high
in sugar.
Chronic obstructive pulmonary disease
Chronic obstructive pulmonary disease
(COPD) is common lung disease in which
breathing becomes difficult. The two main
forms of COPD are chronic bronchitis and
emphysema. While smoking is the main
cause, heavy exposure to secondhand
smoke, pollution and gases or fumes also
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Major Markets
continued
Mental health
Mental health problems include anxiety
and depression. With telehealth, patients
are able to meet with their doctors via video
conferencing, in lieu of an office visit. This
segment accounts for 4.1% of industry
revenue in 2014. Mental health cases have
increased over the past five years as many
mental health treatment costs are now
covered by Medicare and Medicaid.
Other
Other telehealth services account for
1.8% of industry revenue. This segment
includes skin diseases, nutrition, oral
health and reproductive health. Remote
monitoring and conferencing with
providers allows patients and doctors
greater flexibility. Over the past five
years, this segments share of revenue
has declined.
International Trade
WWW.IBISWORLD.COM
West
New
England
AK
0.2
Great
Lakes
WA
ND
MT
1.5
Rocky
Mountains
ID
OR
1.1
West NV
1.0
0.7
SD
0.1
WY
0.5
MN
0.1
0.2
Plains
CO
0.8
KY
0.7
OK
1.3
NC
2.3
TN
AZ
NM
2.3
0.5
Southwest
TX
8.9
HI
0.5
2 NH
3 MA
4 RI
5 CT
6 NJ
7 DE
8 MD
0.2
1.2
0.3
4.0
1.7
0.3
SC
Southeast
0.9
MS
AL
1.4
1.2
GA
3.1
0.8
LA
1.6
FL
8.5
Establishments (%)
0.4
2.1
AR
0.6
2.1
13.9
WV VA
2.2
1.4
1.5
CA
West
3.4
MO
KS
1.5
OH
1.6
3.7
4.0
IN
IL
0.5
UT
PA
3.1
0.6
0.3
1 2
3
NY
7.8
5 4
MI
1.1
IA
NE
0.2
WI
ME
MidAtlantic
9 DC
0.2
Less than 3%
3% to less than 10%
10% to less than 20%
20% or more
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
20
10
Southwest
Southeast
Rocky Mountains
Plains
New England
Mid-Atlantic
Great Lakes
0
West
Percentage
Business Locations
Establishments
Population
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
21
Competitive Landscape
in
this industry is L ow
identifies
250 Key Success
Factors for a
business. The most
important for this
industry are:
Cost Structure
Benchmarks
Profit
Industry profit, calculated as earnings
before interest and taxes, is expected to
account for 16.5% of revenue in 2014.
Profit margins tend to be relatively high
because companies offer a unique service
and have little competition. In the past
five years, profit margins have increased
from an estimated 13.5% in 2009, as
telehealth services have gained increasing
acceptance in the medical community. As
the US population ages and the incidence
of complicated medical conditions
WWW.IBISWORLD.COM
22
Competitive Landscape
Purchases
Purchase costs in the industry are also
high, accounting for an estimated 25.9%
of industry revenue in 2014. Purchase
costs include the costs related to
procuring software, video,
communications and medical equipment.
These purchases tend to remain constant
as a share of revenue because they factor
into regular industry operations.
Other costs
Marketing costs are minimal and expected
to comprise only 1.5% of total industry
revenue in 2014. Depreciation for the
industry is low, estimated at 2.2% of
industry revenue in 2014, and aside from
computer systems, there is little equipment
to maintain and replace. Other costs include
rent, utilities, administrative costs, business
and legal expenses as well as amortization,
which is the depleting value of nontangible
assets like copyrights and patents.
Industry Costs
(2014)
8.6
Profit
Wages
Purchases
Depreciation
Marketing
Rent & Utilities
Other
16.5
80
Percentage of revenue
Cost Structure
Benchmarks
continued
43.4
42.6
60
18.1
40
2.8
20
6.2
18.5
25.9
2.3
2.2
2.9
8.4
1.5
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
23
Competitive Landscape
Basis of Competition
Level & Trend
ompetition
C
in
this industry is
Mediumand the
trend is S
teady
Barriers to Entry
Level & Trend
arriers to Entry
B
in this industry
are M
ediumand
Increasing
Level
Medium
Low
Growth
Low
High
Medium
Low
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Competitive Landscape
Industry
Globalization
Level & Trend
lobalization
G
in
this industry is
Lowand the trend
is I ncreasing
24
WWW.IBISWORLD.COM
Major Companies
Major players
(Market share)
78.0%
Other
GlobalMed 12.0%
Player Performance
GlobalMed
Market share: 12.0%
Industry Brand Names
GlobalMed
SOURCE: WWW.IBISWORLD.COM
Revenue
($ million)
(% change)
Operating Income
($ million)
(% change)
2009
19.0
N/C
2.8
N/C
2010
22.4
17.9
3.3
17.9
2011
26.3
17.4
4.0
21.2
2012
32.2
22.4
5.1
27.5
2013
36.5
13.4
5.9
15.7
2014
40.7
11.5
6.7
13.6
*Estimates
SOURCE: IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Player Performance
InTouch
Technologies Inc.
Market share: 10.0%
Revenue
($ million)
(% change)
Operating Income
($ million)
(% change)
2009
7.5
N/C
1.1
N/C
2010
15.8
110.7
2.4
118.2
2011
26.5
67.7
4.1
70.8
2012
28.5
7.5
4.8
17.1
2013
29.1
2.1
4.7
-2.1
2014
32.1
10.3
5.3
12.8
*Estimates
Other Companies
Teledoc Inc.
SOURCE: IBISWORLD
WWW.IBISWORLD.COM
Major Companies
Other Companies
continued
WWW.IBISWORLD.COM
Operating Conditions
of capital
intensity is L ow
Capital intensity
Economy
Healthcare and
Social
Assistance
Telehealth
Services
Information, Communications,
Mining, Finance and Real
Estate. To increase revenue
firms need superior debt
management, a stable
macroeconomic environment
and a sound investment plan.
Telehealth
Services
Physical Therapists
Medical Device
Manufacturing
Capital Intensive
Labor Intensive
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Operating Conditions
Capital Intensity
continued
Technology
& Systems
of
Technology
Change is H
igh
Revenue Volatility
Level
The level
of
Volatility is
Very High
Volatility vs Growth
1000
Level
The level
Hazardous
Rollercoaster
Telehealth
Services
100
10
1
0.1
Stagnant
30
10
Blue Chip
10
30
50
70
WWW.IBISWORLD.COM
Operating Conditions
Revenue Volatility
continued
Regulation is
Mediumand the
trend is I ncreasing
Industry Assistance
Level & Trend
he level of Industry
T
Assistance is L ow
and the trend
is I ncreasing
WWW.IBISWORLD.COM
Key Statistics
Industry Data
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Revenue
($m)
37.0
64.6
67.0
63.5
84.0
112.6
184.2
203.4
260.2
320.2
478.5
723.8
1,153.3
1,703.0
2,405.5
Annual Change
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
Revenue
(%)
74.6
3.7
-5.2
32.3
34.0
63.6
10.4
27.9
23.1
49.4
51.3
59.3
47.7
41.3
Industry
Value Added
($m)
24.9
38.9
47.0
50.4
62.4
80.8
112.2
127.9
154.6
196.2
278.5
399.1
603.1
861.1
1,190.8
Establishments
89
129
173
177
214
266
312
336
355
430
558
726
983
1,297
1,686
Enterprises Employment
87
603
126
868
170
1,180
170
1,228
206
1,498
258
1,867
300
2,438
326
2,807
345
3,048
417
3,739
535
5,223
689
7,364
922
10,884
1,207
15,318
1,558
20,969
Exports
----------------
Industry
Value Added
(%)
56.2
20.8
7.2
23.8
29.5
38.9
14.0
20.9
26.9
41.9
43.3
51.1
42.8
38.3
Establishments
(%)
44.9
34.1
2.3
20.9
24.3
17.3
7.7
5.7
21.1
29.8
30.1
35.4
31.9
30.0
Enterprises Employment
(%)
(%)
44.8
43.9
34.9
35.9
0.0
4.1
21.2
22.0
25.2
24.6
16.3
30.6
8.7
15.1
5.8
8.6
20.9
22.7
28.3
39.7
28.8
41.0
33.8
47.8
30.9
40.7
29.1
36.9
Exports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Key Ratios
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
IVA/Revenue
(%)
67.30
60.22
70.15
79.37
74.29
71.76
60.91
62.88
59.42
61.27
58.20
55.14
52.29
50.56
49.50
Imports/
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Exports/
Revenue
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Revenue per
Employee
($000)
61.36
74.42
56.78
51.71
56.07
60.31
75.55
72.46
85.37
85.64
91.61
98.29
105.96
111.18
114.72
Imports
----------------
Wages
($m)
18.9
28.5
36.4
40.8
49.0
62.1
81.0
93.0
109.0
136.3
188.1
261.5
380.3
530.4
723.4
Domestic
Demand
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Number of adults
aged 65 & older
(%)
36.8
37.3
37.9
38.9
39.6
40.4
41.5
42.7
44.0
45.3
46.7
48.2
49.7
51.3
52.9
Imports
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Wages
(%)
50.8
27.7
12.1
20.1
26.7
30.4
14.8
17.2
25.0
38.0
39.0
45.4
39.5
36.4
Domestic
Demand
(%)
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
N/A
Number of adults
aged 65 & older
(%)
1.4
1.6
2.6
1.8
2.0
2.7
2.9
3.0
3.0
3.1
3.2
3.1
3.2
3.1
Wages/Revenue
(%)
51.08
44.12
54.33
64.25
58.33
55.15
43.97
45.72
41.89
42.57
39.31
36.13
32.97
31.15
30.07
Employees
per Est.
6.78
6.73
6.82
6.94
7.00
7.02
7.81
8.35
8.59
8.70
9.36
10.14
11.07
11.81
12.44
Average Wage
($)
31,343.28
32,834.10
30,847.46
33,224.76
32,710.28
33,261.92
33,223.95
33,131.46
35,761.15
36,453.60
36,013.79
35,510.59
34,941.20
34,625.93
34,498.55
Share of the
Economy
(%)
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.00
0.01
SOURCE: WWW.IBISWORLD.COM
WWW.IBISWORLD.COM
Industry Jargon
IBISWorld Glossary
WWW.IBISWORLD.COM
IBISWorld Glossary
continued
Who is IBISWorld?
We are strategists, analysts, researchers, and marketers. We provide
answers to information-hungry, time-poor businesses. Our goal is to
provide real world answers that matter to your business in our 700 US
industry reports. When tough strategic, budget, sales and marketing
decisions need to be made, our suite of Industry and Risk intelligence
products give you deeply-researched answers quickly.
IBISWorld Membership
IBISWorld offers tailored membership packages to meet your needs.
Disclaimer
This product has been supplied by IBISWorld Inc. (IBISWorld) solely for use
by its authorized licensees strictly in accordance with their license
agreements with IBISWorld. IBISWorld makes no representation to any
other person with regard to the completeness or accuracy of the data or
information contained herein, and it accepts no responsibility and disclaims
all liability (save for liability which cannot be lawfully disclaimed) for loss or
damage whatsoever suffered or incurred by any other person resulting from
the use of, or reliance upon, the data or information contained herein.
Copyright in this publication is owned by IBISWorld Inc. The publication is
sold on the basis that the purchaser agrees not to copy the material
contained within it for other than the purchasers own purposes. In the event
that the purchaser uses or quotes from the material in this publication in
papers, reports, or opinions prepared for any other person it is agreed that
it will be sourced to: IBISWorld Inc.