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SOC Telemed (TLMD) Aids Virtual Service Expansion of SCP Health
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SOC Telemed, Inc. , a leading national provider of acute telemedicine technology and solutions, has entered into an agreement with the clinical company SCP Health (SCP). Pursuant to the agreement, SOC Telemed will provide its telemedicine platform, Telemed IQ, to SCP Health.
SCP Health is looking to expand its telemedicine practices and finds the use of Telemed IQ, the cloud-based acute care telemedicine platform of SOC Telemed, to be the best fit.
SCP Health will use the Telemed IQ platform as a stand-alone software-as-a-service (SaaS) solution to virtualize its own clinician networks. Telemed IQ will cater to SCP Health’s telemedicine needs comprising hospital medicine, emergency medicine and critical care programs.
Telemed IQ’s highly secure platform will be utilized to deliver the expertise of SCP Health’s clinicians to hospitals all over the nation that too in multiple clinical service lines. By using Telemed IQ, SCP Health will be able to provide online as well as offline clinical consultations.
SCP Health’s effort to incorporate virtual care is in line with the growing trend of remote heathcare. During the pandemic, SCP Health rapidly deployed SOC Telemed's telemedicine solutions to support its clients' emergency and hospital medicine needs. The expansion of the earlier deal shows that SCP Health is aiming to offer an extended suite of solutions and services via online healthcare.
SCP Health chose SOC Telemed because of the latter’s leadership in providing acute care telemedicine services and technology to U.S. hospitals and healthcare systems. It provides its services to 1,000 facilities including approximately 700 acute care hospitals in 47 states.
For SOC Telemed, the SCP Health partnership will help generate Telemed IQ subscription license fees. Although revenues from the same proved to be immaterial, the same increased in recent periods.
SOC Telemed intends to accelerate the sale of subscriptions for its Telemed IQ SaaS platform as a standalone solution to customers seeking to use its telemedicine platform with their own clinicians. This will provide the company with additional sources of recurring revenues. Sales from the Telemed IQ SaaS platform generate attractive gross margins, contributing to cash flow from operations and aligning with its long-term profitability goals.
The company has a pretty reliable source of revenues. Its customers generally enter into multi-year agreements whereby they pay a fixed monthly fee to perform a pre-determined number of televisits. In 2020, approximately 64% of its revenues was derived from fixed monthly fees.
SOC Telemed’s total addressable market (TAM) for its current core specialties represents a $6.7-billion market opportunity. The company’s TAM can be extended to $8.9 billion if specialties, such as palliative care and oncology are included.
The COVID-19 pandemic left a significant impact on the telemedicine market by increasing utilization, awareness and acceptance among patients and providers. Importance of telemedicine peaked in the current environment. Telemedicine is promoted at the highest levels of government as a key tool for the ongoing healthcare delivery.
Telemedicine spending has seen an upswing since 2020 and we expect this trend to continue even after the public health emergency subsides.
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SOC Telemed (TLMD) Aids Virtual Service Expansion of SCP Health
SOC Telemed, Inc. , a leading national provider of acute telemedicine technology and solutions, has entered into an agreement with the clinical company SCP Health (SCP). Pursuant to the agreement, SOC Telemed will provide its telemedicine platform, Telemed IQ, to SCP Health.
SCP Health is looking to expand its telemedicine practices and finds the use of Telemed IQ, the cloud-based acute care telemedicine platform of SOC Telemed, to be the best fit.
SCP Health will use the Telemed IQ platform as a stand-alone software-as-a-service (SaaS) solution to virtualize its own clinician networks. Telemed IQ will cater to SCP Health’s telemedicine needs comprising hospital medicine, emergency medicine and critical care programs.
Telemed IQ’s highly secure platform will be utilized to deliver the expertise of SCP Health’s clinicians to hospitals all over the nation that too in multiple clinical service lines. By using Telemed IQ, SCP Health will be able to provide online as well as offline clinical consultations.
SCP Health’s effort to incorporate virtual care is in line with the growing trend of remote heathcare. During the pandemic, SCP Health rapidly deployed SOC Telemed's telemedicine solutions to support its clients' emergency and hospital medicine needs. The expansion of the earlier deal shows that SCP Health is aiming to offer an extended suite of solutions and services via online healthcare.
SCP Health chose SOC Telemed because of the latter’s leadership in providing acute care telemedicine services and technology to U.S. hospitals and healthcare systems. It provides its services to 1,000 facilities including approximately 700 acute care hospitals in 47 states.
For SOC Telemed, the SCP Health partnership will help generate Telemed IQ subscription license fees. Although revenues from the same proved to be immaterial, the same increased in recent periods.
SOC Telemed intends to accelerate the sale of subscriptions for its Telemed IQ SaaS platform as a standalone solution to customers seeking to use its telemedicine platform with their own clinicians. This will provide the company with additional sources of recurring revenues. Sales from the Telemed IQ SaaS platform generate attractive gross margins, contributing to cash flow from operations and aligning with its long-term profitability goals.
The company has a pretty reliable source of revenues. Its customers generally enter into multi-year agreements whereby they pay a fixed monthly fee to perform a pre-determined number of televisits. In 2020, approximately 64% of its revenues was derived from fixed monthly fees.
SOC Telemed’s total addressable market (TAM) for its current core specialties represents a $6.7-billion market opportunity. The company’s TAM can be extended to $8.9 billion if specialties, such as palliative care and oncology are included.
The COVID-19 pandemic left a significant impact on the telemedicine market by increasing utilization, awareness and acceptance among patients and providers. Importance of telemedicine peaked in the current environment. Telemedicine is promoted at the highest levels of government as a key tool for the ongoing healthcare delivery.
Telemedicine spending has seen an upswing since 2020 and we expect this trend to continue even after the public health emergency subsides.
Some other companies in this space are Teladoc Health Inc. (TDOC - Free Report) , American Well Corp. (AMWL - Free Report) , Amazon.com, Inc. (AMZN - Free Report) and Cigna Corp. (CI - Free Report) .
Year to date, the stock has dropped 19.7% compared with its industry’s decline of 23.7%.
SOC Telemed carries a Zacks Rank #4 (Sell), presently. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
+1,500% Growth: One of 2021’s Most Exciting Investment Opportunities
In addition to the stocks you read about above, would you like to see Zacks’ top picks to capitalize on the Internet of Things (IoT)? It is one of the fastest-growing technologies in history, with an estimated 77 billion devices to be connected by 2025. That works out to 127 new devices per second.
Zacks has released a special report to help you capitalize on the Internet of Things’s exponential growth. It reveals 4 under-the-radar stocks that could be some of the most profitable holdings in your portfolio in 2021 and beyond.
Click here to download this report FREE >>