Telehealth or remote control, technology-enabled healthcare, has existed in primary health care for years through companies such as Teladoc (NYSE: TDOC), Doctors on demand and MDLIVE.
In recent years, the application of telemedicine has rapidly expanded to address specific chronic and behavioral health issues such as mental health, weight loss and nutrition, addiction, diabetes and hypertension, etc. These are real and often very serious problems faced by people all over the world. world, yet until now they have seen little or no use of technology in providing care.
We believe behavioral health is particularly well suited to taking advantage of the digitization trends that COVID-19 has accelerated. Previously, we wrote about the impact of the pandemic on online learning and education, for both K-12 students and adult students. But behavioral health is another area impacted by the fundamental change in consumer behavior today. Below are four reasons why we believe the time has come for behavioral health startups, followed by five key factors we believe characterize successful companies in this industry.
Telemedicine can significantly reduce the cost of care
Traditional behavioral health care is prohibitive for most people. In-person therapy costs more than $ 100 per session in the United States, and many mental health and substance use providers do not accept insurance because they are not paid enough by insurers.
Conversely, telemedicine reduces overhead costs and adapts more efficiently. By leveraging technology, providers can treat more patients in less time with near zero marginal costs. Mobile-based communications enable asynchronous care that further helps providers scale. Access to digital content offers patients continuous support without the need for a human on the other side. This is particularly useful in treating behavioral health problems where ongoing support and motivation may be needed.
Technology unlocks supply in supplier "shadow markets"
Globally, we face an extreme shortage of behavioral health workers. For example, the United States has fewer than 30,000 licensed psychiatrists (which translates to <1 in every 10,000 people). Outside of the big cities, the problem gets worse: about 50-60% of non-metropolitan counties have no psychologists or psychiatrists at all.
Even when suppliers are available, waiting times for appointments are notoriously long. This is a huge problem when behavioral health conditions often require prompt intervention.
We are seeing new platforms building large networks of certified coaches, licensed psychologists and psychiatrists and other suppliers, aggregating the offering into what has historically been a limited and highly fragmented population of suppliers.
Behavioral / mental health problems are losing their stigma
We believe the stigma associated with mental illness and other behavioral health conditions is dissipating. More and more public figures are talking about their struggle with anxiety, depression, addiction and other behavioral health problems. Our zeitgeist is changing rapidly, and there is an all-time high in people seeking help, as the Google Trends data below demonstrates.
Note: the anomalous decline in March / April '20 was caused by the mandatory hospitalization on site due to COVID-19.
