Procurement Market Intelligence Report
Telehealth Services
Sourcing Guide & Market Intelligence
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Telehealth Services Global Overview
Definition
Summary
Companies operating in this market provide remote health-related services and information through the use of telecommunication technologies, such as videoconferencing, web cameras, the internet, and store-and-forward imaging. Key buyers of telehealth services include government agencies, hospitals, and clinics. Telehealth services are primarily offered by health insurance companies, multiline medical firms, and specialized telehealth companies that range in size.
This Report Includes:
- Videoconferencing
- Web Cameras
- Internet
- Store-And-Forward Imaging
Not in this Report:
- Telehealth Software
- Telehealth Hardware
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Global Telehealth Services Procurement Trends
Discover the top international trends affecting procurement in the global Telehealth Services market.
Warning Trends
Public sector demand slumps as the government enters shutdown
- On October 1, the US federal government entered a shutdown after negotiations for a new appropriations bill failed.
- During a government shutdown, essential federal government operations, such as law enforcement, air-traffic control, and social security, persist, while nonessential operations are paused and workers involved in these operations are furloughed. Thus, the current shutdown is expected to result in 750,000 federal workers being furloughed, representing a $400 million reduction in daily expenditure by the federal government.
- This significant reduction in federal spending and operations will affect the entire US economy, weakening aggregate demand and slowing economic growth. For example, the 35-day government shutdown in Q1, 2019, reduced aggregate demand in both the public and private sectors, resulting in a 0.2% reduction in GDP growth that quarter.
- The effects of the shutdown are likely to be most acute in markets where the public sector is a major buyer segment, weakening demand and increasing average vendor risk by destabilizing important revenue streams.
- As negotiations for a new appropriations bill to reopen the government remain ongoing, ProcurementIQ will continue to monitor the situation and update this story with the latest information.
Global Telehealth Services Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 1,380 |
| #2 Europe | 1,125 |
| #3 United States | 980 |
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Geography Drilldown - US & Europe
Average Cost of Telehealth Services
United States
2026 Market Pricing$0.00 to $XXX.XX
per consultationEurope
Average Price
Prices in the Telehealth Services market range from $0.00 to $XXX.XX, depending on Insurance Affiliation, Membership, Organization Size and Type & Scope of Services. For example, lower prices are associated with Enrolled in health insurance plan ($0.00 to $250 per consultation), whereas higher prices are associated with Not enrolled in health insurance plan ($60.00 to $250 per consultation).
Need the scoop on international price trends?
Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Telehealth Services Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Telehealth Services market, prices in the US have grown 1.8% from 2022 to 2025. Meanwhile, the recent three-year CAGR for Europe is +1.4%.
United States (2022-2025)
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Telehealth Services
Total cost of ownership is Low in the Telehealth Services market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Cancellations may raise the total cost of ownership unexpectedly.
Negotiated Before
Installation
Customization
Billed During
Annual Fees
Unforeseen
Cancellations
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to -0.6 in the United States. Buyer power is most positively impacted by Recent Developments. It is most negatively impacted by Availability of Substitutes. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Europe
Buyer power forecasts: your glimpse into the future
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- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Operating System Software Publishers
- Computer Wholesalers
- Primary Care & Specialist Doctors
2nd
Tier Suppliers
- Intellectual Property Licensing Providers
- Computer Manufacturers
Biggest Telehealth Services Suppliers in the US by Revenue
The largest Telehealth Services vendors by revenue in the US are Teladoc Health, inc., MDLive Inc. and 98point6 Inc. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| American Well Corporation | International | Boston, MA | 501-1,000 | 10-15 | ||||
| Teladoc Health, inc. | Global | NEW YORK, NY | 1,001-10,000 | 15-20 | ||||
| MDLive Inc. | National | Miramar, FL | 101-250 | 5-10 | ||||
| Doctor On Demand Inc. | International | San Francisco, CA | 501-1,000 | 5-10 | ||||
| 98point6 Inc. | International | Seattle, WA | 101-250 | < 5 | ||||
| First Stop Health LLC | National | Chicago, IL | 51-100 | < 5 | ||||
| HealthTap Inc. | National | Mountain View, CA | 101-250 | < 5 | ||||
| MeMD, Inc. | Global | Phoenix, AZ | 51-100 | < 5 | ||||
| Orane Healthcare India Private Limited | Global | Coimbatore, IN | 51-100 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Telehealth Services market is 6.2% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Overhead. The cost trend for this component is rising, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Telehealth services are in the growth phase of the product life cycle. During the past three years, more employers and healthcare providers have been turning to telehealth services due to their cost-effectiveness and time efficiency. As a result, sales of telehealth services have been rising.
The telehealth market exhibits a medium level of concentration, with the top four players accounting for between 40.0% and 50.0% of market revenue. The top suppliers in this market are Teladoc, American Well, Doctor On Demand, and MDLive.
The supply chain for telehealth services presents a low risk of service disruptions or sudden price spikes. Although changes in economic activity and regulations can impact telehealth providers’ operating costs, suppliers are not dependent on critical inputs that could undermine the entire supply chain.
The rate of regulatory change in the telehealth market is rapid. Telehealth providers’ software must comply with the Federal Health Administration’s standards. Telehealth systems must also meet board guidelines in relation to accuracy and traceability, as well as regulatory requirements concerning data security.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
American Well Corporation
American Well Corporation is a private company operating internationally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2006, the company is currently headquartered in Boston, Massachusetts, United States of America with an estimated 750 employees.... Subscribe to learn more
Teladoc Health, inc.
Teladoc Health, inc. is a public company operating globally in the healthcare and social assistance sector. The company's offerings include telehealth services. Founded in 2002, the company is currently headquartered in PURCHASE, New York, United States of America with an estimated 5600 employees. Subscribe to learn more
Doctor On Demand Inc.
Doctor On Demand Inc. is a private company operating internationally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2012, the company is currently headquartered in San Francisco, California, United States of America with an estimated 636 employees.... Subscribe to learn more
MDLive Inc.
MDLive Inc. is a private company operating nationally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2009, the company is currently headquartered in Miramar, Florida, United States of America with an estimated 250 employees. Subscribe to learn more
98point6 Inc.
98point6 Inc. is a private company operating internationally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2015, the company is currently headquartered in Seattle, Washington, United States of America with an estimated 215 employees. Subscribe to learn more
First Stop Health LLC
First Stop Health LLC is a private company operating nationally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2011, the company is currently headquartered in Chicago, Illinois, United States of America with an estimated 61 employees. Subscribe to learn more
HealthTap Inc.
HealthTap Inc. is a private company operating nationally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2010, the company is currently headquartered in Mountain View, California, United States of America with an estimated 192 employees. Subscribe to learn more
MeMD, Inc.
MeMD, Inc. is a private company operating globally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2010, the company is currently headquartered in Phoenix, Arizona, United States of America with an estimated 86 employees. Subscribe to learn more
Orane Healthcare India Private Limited
Orane Healthcare India Private Limited is a private company operating globally in the healthcare & social assistance sector. The company's offerings include telehealth services. Founded in 2010, the company is currently headquartered in Coimbatore, Tamil Nadu, India with an estimated 52 employees. Subscribe to learn more
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Procurement Management KPIs for the Telehealth Services Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Average Resolution Time and Customer Satisfaction Score (CSAT). Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Availability of Services and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Average Resolution Time |
|
Total resolution time Number of resolved tickets |
The average resolution time represents the average amount of time it takes to resolve a support ticket. The time it takes to receive telehealthcare services can be compared to the time it takes to see an in-person healthcare provider. |
| Customer Satisfaction Score (CSAT) |
|
Number of positive customer responses Number of customer responses |
Customer satisfaction represents customers’ overall satisfaction with a company. Buyers should consider vendors that have high satisfaction scores. |
|
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Service
Do you offer multilingual services? If so, which languages are available?
How have you coped with surging demand stemming from the coronavirus pandemic?
Software-Technology
What types of communications technology do you employ to provide your services?
Do you offer videoconferencing, store-and-forward imaging and wireless communications?
Experience Qualifications
Do you have affiliations with any telehealth or telemedicine industry organizations? If so, which organizations?
Are your doctors US board-certified to practice internal medicine, family medicine and pediatrics? What other credentials do your doctors possess?
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Telehealth Services RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give a general overview of their organization and the type of business sector or industry they operate in.
Buyers should provide the number of employees and locations.
Statement Of Need
Buyers should provide a detailed description of the services that the successful vendor will be required to provide.
Buyers should specify the number or share of employees that are eligible for benefits, such as medical, vision, dental and life insurance.
Project Budget
If one exists, buyers should specify their budget for the desired telehealth services as well as related products and services.
Vendors should explain how pricing will be determined and how additional costs will be calculated.
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Our Reports include:
- Opportunity assessment
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- Buyer power levers
- Price environment and market pricing
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- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
