Telehealth service prices are forecast to increase during the next three years
Los Angeles, CA (PRWEB) March 11, 2015
Telehealth services have a buyer power score of 3.8 out of 5, reflecting mixed conditions that have been influencing buyer power during the three years to 2015. With more healthcare providers and businesses beginning to use online consultations, demand for telehealth services has surged in recent years and caused prices to rise. More employers have been offering telehealth services to their employees to help curb skyrocketing healthcare costs relating to employee sickness and absenteeism. In the three years to 2018, prices for telehealth services are projected to continue rising as demand picks up due to expanding coverage for telehealth services and advances in medical and communication technologies. “Although increasing prices hamper buyer power, mounting market competition helps mitigate more severe price growth,” according to IBISWorld business research analyst Anna Son.
Market fragmentation further augments buyer power. Despite a few prominent players, like Teledoc and MDLive, the telehealth market is highly fragmented and competitive. The vast majority of operators are small and medium-size companies catering services to their local or regional markets. During the next three years, market share concentration is projected to remain low due to the continual entrance of new players, which will help warrant strong price competition. Buyers also benefit from the continual technological developments that are enhancing product quality and data security. “Technological advances help expand the scope of telehealth services, allowing patients and physicians to access and exchange information more efficiently,” says Son.
On the other hand, moderate product specialization and switching costs restrain buyer power. Telehealth providers typically customize their systems to specific buyer needs because each buyer has its own goals, culture and challenges. Suppliers can tailor their solutions for a specific field of medicine or delivery option. When switching suppliers, buyers should consider a number of factors. Buyers engaged in long-term contracts might be responsible for termination fees. Switching to a new supplier can also jeopardize a buyer's access to the previous supplier's network of services and healthcare providers. For more information, visit IBISWorld’s Telehealth Services procurement category market research report page.
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IBISWorld Procurement Report Key Topics
This report is intended to help buyers of telehealth services. Companies operating in the market provide remote health-related services and information by using telecommunication technologies, such as videoconferencing, web cameras, the internet and store-and-forward imaging. Telehealth services may include patient monitoring and consultation, exchanging health services, or education and transmission of diagnoses.
Recent Price Trend
Product Life Cycle
Total Cost of Ownership
Supply Chain & Vendors
Supply Chain Dynamics
Supply Chain Risk
Market Share Concentration
Buying Lead Time
Key RFP Elements
Buyer Power Factors
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