“Historically, healthcare stocks fell into one of three categories: therapeutics, insurance, and providers. Recently, Telehealth (aka Telemedicine) has emerged as an exciting new category. By using communication technology, doctors can provide basic consultation services with significantly more efficiency. There is a subtle benefit beyond cost reduction. By making access to healthcare much more convenient, patients are more likely to utilize it. This means increased revenue for telehealth providers.
TDOC is one of the best known telehealth stocks. However, even HIMS (a generic drugs retailer) benefits significantly from the telehealth trend. Some of their products require a prescription, and they have doctors on staff to evaluate potential patients.”
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