TELEMEDICINE U.S.: U.S. COMPANY DOCTOR ON DEMAND SECURES $74M AMID BOOM

5/3/2018

Video-based telemedicine company Doctor On Demand secured $74 million in the latest funding round, led by Goldman Sachs and Princeville Global, bringing the company’s total funding to $160 million, according to TechCrunch. Doctor On Demand, one of the leading telemedicine companies in the US, plans on using the money to further develop its platform and expand the accessibility of its services. Telemedicine refers to the use of mobile and video technology to deliver clinical care, such as through patient-physician video conferencing. The startup is partnered with more than two dozen health services and serves more than 400 employer clients, bringing its reach to more than 2 million US patients.

The significant funding round comes as telemedicine balances on the verge of rapid adoption in the US. Business Insider Intelligence projects the US telehealth market — which includes telemedicine, mHealth, and remote patient monitoring — will grow at an annualized rate of 75% in the five years through 2023 to reach more than 57% of the total US population. This growth will be spurred by several drivers, including the following:

A substantial addressable market. Although telehealth solutions aren't suitable for all patients, about 45% of the US population, or 147 million consumers, falls within the addressable market. Each year, there are more than 1.2 billion instances of outpatient medical care. Existing telehealth tools and solutions can serve anywhere between 42% and 45% of these visits using virtual care and RPM, equating to around 500 million instances that could be addressed by telehealth annually.
The US government making telehealth a priority. No fewer than 12 pieces of legislation on telehealth were brought up in 2017, mHealthIntelligence notes. This was driven by the impending expiration of some bills, as well as the need to keep up with consumer and industry demand for telehealth technology.
High demand from consumers. According to the 2018 Business Insider Intelligence Insurance Technology survey, 57% of consumers said they'd use telehealth for a remote general consultation if given the option. Further, 28% said they'd use telehealth if provided with a free in-person follow-up visit if it was required Source: Business Insider