us that health plans may revert back to reimbursing telehealth visits at a lower rate than in-office visits post-pandemic — and clinics will likely urge patients to opt for in-office visits.In this case, we'll expect to see consumers eye standalone providers — like Ro and 98point6— that can continue meeting their demand for virtual care.
And virtual care companies that move beyond just offering virtual consultations — to include digital pharmacies and RPM, for instance — will be in a prime position to hook in a wider consumer base. As such, we wouldn't be surprised if telehealth companies offering diverse services at a more rate than in-person visits continue to attract droves of consumers beyond the pandemic.
We think smaller, less-funded telehealth entrants should feel particular urgency to expand offerings or risk being overshadowed by telehealth firms dominating the market amid the pandemic. Big-name telehealth players like Amwell and Doctor on Demand have seen record growth since March and are bringing in the funding needed to build out their offerings: Amwell a whopping $194 million in May and plans to file for an IPO to keep up with the surge in demand, for instance.
This could signify trouble for smaller telehealth companies with less capital and brand recognition to firmly establish themselves within the telehealth space. We think it would be a smart bet for these telehealth companies to wade into lesser-touched areas of telehealth — like
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