Telemedicine in the US

Zooming Ahead
From USD245 million in 2012 to a forecasted USD1.4 billion in 2018,
the telemedicine market in the US is indeed undergoing a tremendous
journey. One of the main reasons driving this growth is the rise in the number
of computing devices coupled with rapidly evolving wireless networks, such as
3G, 4G and Wi-Fi, which has led to increased connectivity between patients
and doctors.

US Telemedicine - Market Size (USD Million)

1,398

CAGR (201218): 33.7%

1,041

320

245

2012

2013

775

577

430

2014F

2015F

2016F

2017F

2018F

Note: F refers to Forecasted

US Telemedicine - Market Composition (2013)

Total Market Size USD320 Million

51.1%

Top 10 Companies

Although the industry is concentrated,

at present, it is estimated that in the next
few years, fragmentation may set in because
of increasing demand and stronger
government policy support.

48.9%
Others
In 2013, 17% of the employers in the US planned to
offer telemedicine services to their employees.
This number is expected to increase to 27% during 2014-15.

US Telemedicine - Top 5 Players

Volume of Patients (000)

3,200

CAGR
1,922

1,154
150

2012

250

416

2013

2014F

693

2015F

2016F

2017F

2018F

Note: F refers to Forecasted

Drivers and Challenges

Drivers
Rising Chronic Diseases
As of 2012, 48 million people
in the US suffered from chronic illnesses,
and 25% of the US adult suffered from
multiple chronic conditions

Challenges
Reimbursement and Standardization

The number of people above the age of 50 is

expected to reach 133 million by 2030, representing
a 70% increase since 2000

The industry faces several barriers toward

uniform implementation of telemedicine
in terms of costs, regulatory concerns,
reimbursement issues, and lack of
standardization

Regulatory Changes

Regulatory Restrictions

Inclusion of telemedicine in accountable care

organizations (ACOs), amendments by the American
Telehealth Association (ATA) to secure reimbursements
for telemedicine technology etc

Licensing issues, accreditation

requirements et al

Technological Innovation

These vary by state and can result in service

quality concerns

Rising Chronic Diseases

Online Prescribing Policies

Source : Aranca research, Health Capital Report - Opportunities and Challenges for Telemedicine

Arancas Views
Telemedicine has rapidly changed the way healthcare services are delivered in the US by
extending the reach of healthcare providers to newer, remote markets that lack medical
facilities. While telemedicine is not the panacea for the ills of healthcare, it goes a long way
with regard to cost control, savings, crucial access to medical facilities, and better outcomes for
patients.
Developed nations such as the US have set the trend for this technological innovation
and are expected to adopt it as their prominent healthcare service delivery in the near future.
On a global level, developing regions with limited infrastructure are expected to adopt
telemedicine as an integral link between patients and health centers. In countries such as India
and Mexico, telemedicine has already made a significant impact and several pilot projects have
been implemented in major hospitals in these regions.
The percentage of US healthcare centres offering telemedicine is expected to increase from
22% in 2014 to 37% in 2015. The diffusion of telemedicine into the US healthcare system is
eminent and is expected to redefine the the way service is provided for patients.
Compiled by: Charvi Laul
2014 Aranca. All Rights Reserved. www.aranca.com
If you wish to reproduce or use this infographic in any format, please email us at syndicate@aranca.com

Arancas Views
Telemedicine has rapidly changed the way healthcare services are delivered in the US by
extending the reach of healthcare providers to newer, remote markets that lack medical
facilities. While telemedicine is not the panacea for the ills of healthcare, it goes a long way
with regard to cost control, savings, crucial access to medical facilities, and better outcomes for
patients.
Developed nations such as the US have set the trend for this technological innovation
and are expected to adopt it as their prominent healthcare service delivery in the near future.
On a global level, developing regions with limited infrastructure are expected to adopt
telemedicine as an integral link between patients and health centers. In countries such as India
and Mexico, telemedicine has already made a significant impact and several pilot projects have
been implemented in major hospitals in these regions.
The percentage of US healthcare centres offering telemedicine is expected to increase from
22% in 2014 to 37% in 2015. The diffusion of telemedicine into the US healthcare system is
eminent and is expected to redefine the the way service is provided for patients.
Compiled by: Charvi Laul
2014 Aranca. All Rights Reserved. www.aranca.com
If you wish to reproduce or use this infographic in any format, please email us at syndicate@aranca.com