How can Telehealth Regain its Mojo? Focus on its Strengths

Introduction

Telemedicine has had a rough several years post-COVID.

The COVID-19 pandemic triggered a rapid rise in telehealth, as lockdowns and social distancing made remote healthcare a necessity. However, as the pandemic subsided, so did much of the enthusiasm for telehealth. Most notably, healthcare behemoth UnitedHealthcare shutting down their virtual care service reinforces the idea that telehealth might not be the universal solution many hoped it would be.

In fact, the warning signs were there early in the pandemic, with telemedicine utilization dropping quickly within a few months of adoption:

Astute readers will notice the above chart looks remarkably like the Gartner Hype Cycle, with telehealth currently falling towards the Trough of Disillusionment.

And the public markets sentiments have reflected that, with public digital health and telemedicine companies emerging as one of the biggest losers in the 2022 market selloff, losing a collective $101B in market value.

We all intuitively understand how convenient remote technology is, but clearly telehealth is not a "hammer" for every healthcare "nail." To maximize its potential, we need to return to basics, analyze its true strengths, and apply it where it can deliver the most value. By doing so, we can identify the right contexts where telehealth can truly excel.

Why Has Telehealth Been Losing Traction?

Despite its promise of convenience and accessibility, telehealth has struggled to gain sustained adoption in many areas of healthcare. Several factors contribute to this slow uptake, rooted primarily in the unique nature of the healthcare industry and the challenges of translating traditional, in-person care models into the digital realm.

Trust Issues in Patient-Provider Relationships

One of the biggest hurdles in the adoption of telehealth is the deep-seated trust that patients place in their healthcare providers. This trust is often built through face-to-face interactions, where patients can see and communicate directly with their doctors. In many cases, the patient-provider relationship is long-term and involves managing complex, chronic conditions that require a high level of trust.

Telehealth, by its nature, lacks the personal touch of in-person visits, making it difficult for patients to feel as confident in the care they receive. This issue is particularly pronounced in specialties where ongoing, personal relationships between patient and provider are critical, such as primary care, mental health, and chronic disease management.

Complexity of Healthcare Needs

Healthcare is inherently complex, with many conditions requiring detailed physical examinations and procedures that can’t be conducted remotely. Telehealth falls short in these cases, particularly in specialties where hands-on care is essential for accurate diagnosis and treatment. The diverse needs of patients make it challenging to develop a one-size-fits-all digital solution.

Reimbursement and business model challenges

The much maligned Fee-for-service model, which dominates healthcare reimbursement, does not align well with the value proposition of telehealth. Telehealth excels in providing convenient, preventive care that can reduce the need for more costly interventions down the line. However, since the current reimbursement system often rewards volume over value, telehealth providers struggle to justify the lower payments, particularly when their services are designed to minimize the need for frequent, in-person visits.

So What is Telehealth Good At?

While telehealth has faced challenges in becoming a staple of the healthcare industry, it excels in several specific areas where its advantages can be fully realized:

Convenience and Accessibility

One of the most significant benefits of telehealth is the convenience it offers to patients. Telehealth allows individuals to consult with healthcare providers from the comfort of their homes, eliminating the need for travel, waiting rooms, and time off work. This convenience is particularly valuable for routine consultations, follow-up visits, and non-emergency medical advice. For patients in remote or underserved areas, telehealth can bridge the gap in access to healthcare services, offering a lifeline where in-person visits might be challenging or impossible.

The ability to reach a healthcare provider quickly and efficiently makes telehealth an ideal solution for those seeking prompt medical advice or treatment without the hassle of traditional appointments.

Cost-Effectiveness

Telehealth also brings a cost-effective solution to both patients and providers. By reducing the need for physical infrastructure—like clinics and hospitals—telehealth can lower the overall cost of care. For patients, this often translates into lower fees for consultations and reduced expenses related to travel and time off work.

Providers, on the other hand, benefit from the ability to see more patients in a shorter amount of time, optimizing their schedules and resources. This efficiency not only makes healthcare more affordable but also opens up opportunities for scaling services to a broader population without the need for significant capital investment.

Preventative and Episodic Care

Where telehealth truly shines is in the realm of preventative and episodic care—areas that require timely intervention but do not necessarily involve ongoing patient-provider relationships. Preventative care, such as pre-travel consultations, routine screenings, and health assessments, can be easily managed through telehealth platforms. These services are often straightforward, with clear guidelines that do not require extensive in-person interaction.

Episodic care, dealing with acute but non-critical conditions, is another area where telehealth proves highly effective. For example, addressing minor infections, managing short-term illnesses, or providing prescription refills are all scenarios where telehealth can deliver high-quality care without the need for a physical visit.

Flexibility and Continuity of Care

Telehealth offers unparalleled flexibility in how and when patients can access care. The potential asynchronous nature of telehealth services allows patients to seek advice and treatment on their own schedule, without being tied to traditional office hours. This flexibility is particularly beneficial for managing ongoing conditions that require regular check-ins, as patients can maintain continuity of care without the need for frequent in-person visits. Additionally, telehealth enables ongoing monitoring and follow-up, ensuring that patients receive the care they need over time, even if their circumstances change.

Travel Medicine: A Perfect Telehealth Use Case?

Travel medicine focuses on the health of traveling individuals providing preventive care, advice, and treatment options to help them avoid and manage health risks while abroad. It involves preparing travelers with vaccinations, medications, and information about potential health hazards specific to their destinations.

While one might only see travel medicine in the context of high risk international travel, there is plenty of application in domestic travel. A simple ski trip to Breckenridge, Colorado can be ruined by altitude sickness, and a fun day of boat rides in Miami can be derailed by motion sickness. Imagine having to navigate potential out of network health provider bills for these preventable health issues!

With 98.5 million Americans traveling abroad in 2023, the U.S. travel medicine market was valued at $26.35 billion in 2022 and is projected to reach $62.89 billion by 2030.

This isn’t just a pie in the sky market opportunity though; Passport Health, the brick-and-mortar incumbent in the travel health space, generated ~$500M in annual revenue across ~300 locations in the past year.

Despite its seemingly niche application, here’s why we think travel medicine is a great fit to build a digital-first telehealth solution for:

The Unique Needs of Travelers

Travelers face distinct healthcare challenges that differ significantly from those encountered in their daily lives. When preparing for a trip, especially to international destinations, travelers need access to specific healthcare services, such as vaccinations, preventative medications, and advice on managing health risks associated with their destination. These needs are often time-sensitive and require specialized knowledge that general practitioners may not provide.

Once abroad, travelers might encounter unforeseen health issues, from common ailments like food poisoning and motion sickness to more serious conditions that may require immediate attention. Navigating local healthcare systems in foreign countries can be daunting, particularly when language barriers and unfamiliar medical practices come into play.

Why Traditional Solutions Fall Short

Traditional healthcare providers, including primary care physicians and brick-and-mortar travel clinics, often struggle to meet the needs of travelers efficiently. Primary care physicians might not have the specialized knowledge required to offer comprehensive travel health advice, and securing an appointment can be time-consuming, with the average wait time for a non-emergency visit exceeding three weeks. This delay is impractical for travelers needing timely consultations.

Brick-and-mortar travel clinics provide specialized services but are limited by their physical locations. Travelers must visit these clinics in person, which can be inconvenient on short notice. Furthermore, the quality of service can vary significantly between locations, leading to inconsistent care experiences. These traditional models, while helpful, lack the flexibility and convenience that modern travelers increasingly demand.

The Potential of Digital Travel Health Platforms

Travel medicine is uniquely suited to the strengths of telemedicine, making it an ideal application for digital healthcare platforms. The core aspects of travel medicine—pre-travel consultations, preventative care, and managing episodic health issues—align perfectly with what telemedicine does best.

First, travel medicine often involves straightforward, preventative care, such as vaccinations and prescriptions for common travel-related ailments. These services can be easily delivered through telehealth platforms without the need for extensive in-person interactions. The episodic nature of travel medicine, where patients seek care for specific, short-term health concerns rather than ongoing conditions, also matches well with telemedicine’s capabilities.

Telemedicine excels in providing quick, convenient access to healthcare, which is exactly what travelers need. Whether it's last-minute advice on vaccinations or getting a prescription filled before departure, telemedicine allows travelers to access these services without the hassle of visiting a physical clinic. This level of convenience is especially valuable for busy travelers who may not have the time to schedule and attend in-person appointments.

Additionally, the flexibility of telemedicine allows travelers to receive care regardless of their location. Whether they're preparing for a trip or dealing with a health issue while abroad, telemedicine provides continuous access to healthcare professionals, ensuring that travelers are supported throughout their journey. This is particularly important when traveling to regions where local healthcare systems may be unfamiliar or difficult to navigate.

In essence, travel medicine’s focus on preventative care, episodic health issues, and the need for flexible, accessible services makes it a perfect match for telemedicine’s strengths. By leveraging telemedicine, travel health services can be delivered more efficiently and conveniently, enhancing the overall travel experience.

Conclusion

Telehealth is not a one-size-fits-all solution, but when applied in the right context, it can dramatically improve the delivery of healthcare. Travel medicine, with its need for quick, accessible, and preventative care, is a perfect match for telehealth’s strengths. As the travel health market continues to grow, digital platforms that cater to these needs stand to capture significant opportunities. The rise of digital travel health solutions isn’t just about innovation—it's about meeting a real, growing demand with efficiency and convenience.

Do you also think an pretravel telemedicine platform would be useful? Please join us at The Healthcare Syndicate on AngelList to invest in companies that are tackling this unique healthcare need.

Please subscribe to our newsletter if you haven’t, and share our newsletter with a friend. Stay tuned to our newsletter for more insights into healthcare innovation!