Should Teladoc Be Worried About Zocdoc's New Telehealth Service?
The demand for virtual health services has boomed. Roughly 76% of hospitals across the nation utilize video and other technology to connect healthcare providers with their patients, according to a study by the American Hospital Association. Another study released in May reported that between 2017 and 2022, telemedicine is expected to achieve a compound annual growth rate of 19%. As of 2017, the telemedicine market was valued at just under $30 billion. Since the beginning of the COVID-19 pandemic, the demand for quality telehealth services has seen a significant upswing. In fact, the telehealth market is expected to experience 80% growth on a year-over-year basis due to the spike in demand stemming from the coronavirus crisis.
Founded in 2002, Teladoc (NYSE: TDOC) has risen to prominence over the last few years as the telehealth pioneer. The company held its initial public offering (IPO) in 2015. The company already has plenty of competitors in the telehealth space, but a new frontrunner recently emerged.
In April, Zocdoc, a popular medical appointment booking start-up, added virtual doctor visits to its list of services. Within seven days of launching virtual video visits, the company booked over 350,000 appointments in 50 different medical specialties. Zocdoc has since announced the launch of Zocdoc Video Service, a HIPAA-compliant telehealth solution available completely free of charge.
Source Fool.com
