The Telehealth Boom Continues

Telemedicine Flowchart
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New McKinsey analysis suggests that telehealth will maintain most of its pandemic-driven usage gains, which stabilized at 38X its pre-COVID baseline and 17% of all outpatient/office visit claims.

McKinsey’s findings highlight three primary driving factors:


  • 40% of surveyed consumers believe they will continue to use telehealth, up from 11% before COVID-19
  • 84% of physicians are now offering virtual visits, while 57% wish to continue


  • CMS made telehealth coverage for a number of CPT codes permanent in the 2021 physician fee schedule


  • Total digital health VC funding in 1H 2021 reached $14.7B, eclipsing 2020’s total ($14.6B)
  • Investment surge pressuring companies to innovate and find viable models
  • Top 60 digital health players had combined revenue of $5.5B in 2020, vs. $3B in 2019

The Takeaway

It may have been reasonable to expect telehealth usage to decline given the unique circumstances behind its massive growth. However, the combination of patient, clinician, and business momentum suggests that most of telehealth’s share gains could persist.

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