Where will Teladoc's health be in 10 years? – The crazy fool



[ad_1]

Health Teladoc (NYSE: TDOC) ranks as one of my favorite health care titles. The share price has increased by 16% since the beginning of the year. In the first quarter, Teladoc revenue jumped 43% over the previous year, and the total number of business visits increased by 75%, reaching more than one million .

But, even though I like the current situation of Teladoc Health, I still love what the company will do in the future. Where will Teladoc be in 10 years? My answer to this question gives me great confidence in my investment in the stock.

Doctor stethoscope monitor

Source of the image: Getty Images.

Blue Sky for Telehealth

To determine where Teladoc Health will be in 10 years, we must first know where the telehealth is. If you are not familiar with telehealth, it is the provision of remote health care services using technology. Telehealth can be as simple as a phone call with a doctor, but it can also involve an online videoconference.

The main reason I am optimistic about Teladoc's future is that I am optimistic about the prospects for telehealth in general. The trend of population aging is an important factor to consider. The US Census Bureau points out that, from here a little more than 10 years, until 2030, "constitutes an important demographic turning point in the history of the United States". It's at this point that every member of the baby boomer generation will be 65 years old or older.

This translates into increased demand for health services. For example, the American Hospital Association has estimated that by 2030, over 60% of baby boomers will have at least one chronic health condition to manage.

In addition, payers, including government programs, employers and private insurers, will almost certainly focus on finding ways to control the rising costs of health care. And this is not a challenge only for the United States. Countries around the world will have a larger number of older citizens.

Telehealth is one way to help control the costs of health care. A study conducted by a major health insurer Humana (NYSE: HUM) Last year, we found that the use of telehealth services reduced the costs of two-thirds physician visits. Another study by the California Public Employees System found that patients who participated in a telehealth visit were less likely to require a follow-up visit compared to patients with similar conditions who had visited an emergency department or office. doctor.

In addition, the Association of American Medical Colleges predicts that the United States may be short of 120,000 physicians by 2030. Some regions will not have enough doctors to serve their populations. Telehealth is a logical solution to help solve this problem.

Teladoc Health Strategy

The fact that telehealth is becoming more widespread does not automatically mean that Teladoc Health will reap significant benefits from this growth. But I think that will be the case, largely because the company's strategy should contribute to it.

Teladoc continues to expand its range of clinical services. In my opinion, this will enable it to be a telehealth provider of choice for many employers, health plans and government programs.

Speaking of government programs, Teladoc Health's chief executive, Jason Gorevic, said during the company's first-quarter teleconference that Teladoc is "in active discussion" with Medicare Advantage plans and should have more money. information about its progress during the second half of 2019. I think that in the next few years, health insurance will be an important part of the company's activities.

The company is also increasing its penetration of global markets. Teladoc Health already has the largest global footprint of any telehealth service provider. Since controlling health costs and improving the availability of health services is a global problem, I believe that Teladoc's leadership in international markets will play a key role in the company's success over the next decade. coming years.

Although Teladoc is looking to grow outward, it is also focusing on existing customers. A key element of the company's growth strategy is to increase penetration with existing customers. This is a great opportunity given that Teladoc's customer base includes 40% of the Fortune 500 and thousands of small organizations.

Doing well in & # 39;

So where will Teladoc Health be in 10 years? In my opinion, society will prosper much more than today.

I think Teladoc will be very profitable. Currently she is losing money but mainly because she continues to invest in growth. If Wall Street's growth estimates prove accurate, Teladoc's stock could more than double within five years. I think it is achievable. And I suspect that the stock could almost double over the next five years.

If I'm right, Teladoc Health could be worth more than $ 15 billion in 10 years, compared with just over $ 4 billion today. I plan to keep this stock for the long term.

[ad_2]

Source link