Industry observers are closely watching for fresh fallout among telehealth providers. For one, the declared end of the semaglutide drug shortage—as per the Food and Drug Administration—sent the stock of Hims & Hers Health, Inc. sliding about 40% within just a few days as investors realized the profits coming from compounding semaglutide for the telehealth company’s patients will quickly dwindle as providers must shift back to the manufacturer’s original brand drug products for weight management by mid-April. Likewise, Teledoc is under some scrutiny as whistleblowers and short sellers have been alleging lately that the growth engine of Teladoc—BetterHelp, which accounts for 40% of company revenue and EBITDA—is using artificial intelligence (AI) to interact with behavioral health patients while still charging for the encounters as if they were delivered by licensed therapists. Teledoc responded, refuting the allegations and noting that “BetterHelp has a Trust and Safety team dedicated to the detection and prevention of non-compliant use of AI and, if anything, has structured its platform (and its incentives to therapists) to promote live video calls over asynchronous messaging.” Its stock fell 19% in 3 days’ time in the wake of media reports. Also somewhat related, policymakers still need to suss out whether Medicare will or won’t maintain telehealth reimbursement after April 1—another factor that could influence patient appointment bookings and the bottom line for many urgent care operators that offer telehealth options.
The market decides: Telemedicine stocks continue to underperform. “Anemic growth in patients post-pandemic would indicate that consumer behavior still does not favor telemedicine over in-person encounters,” says Alan A. Ayers, MBA, MAcc, President of Urgent Care Consultants and Senior Editor of JUCM. “Additionally, AI poses medical-legal risks that must be guardrailed. Could the same AI allegations occur in any cut/paste electronic medical record—crossing the line from simply recording and organizing data to generating notes and diagnoses? Seems like this is going to be tested by the marketplace and the courts.”