Prior tothe arrival of the novel coronavirus in March, the total annualrevenues of U.S. telehealth players were an estimated $3 billion.(Photo: Shutterstock)

The COVID-19 pandemic has caused a massive acceleration in theuse of telehealth services, with providers now seeing 50 to 175times the number of patients virtually than they had before thepublic health crisis, according to a new report by McKinsey &Co.

The 10-page report found that up to $250 billion ofthe current U.S. health care spend could be virtualized, asproviders have rapidly expanded telehealth offerings to meetincreased demand to the pandemic.

Related: Telehealth providers struggling to meet demand amidcoronavirus outbreak

Prior to the arrival of the novel coronavirus in March, thetotal annual revenues of U.S. telehealth players were an estimated$3 billion, with the largest vendors focused on providing instant,on-demand telehealth visits with physicians.

Since the pandemic, however, the industry has rapidly expandedvirtual services, and McKinsey said that increased demand couldresult in up to $250 billion of the current U.S. health care spendcould be virtualized.

According to the report, 76% of consumers said that they werenow either moderately or highly interested in using telehealth, incontrast to just 11% of consumers who utilized telehealth in 2019.Regulators at the Centers for Medicare & Medicaid Services alsohave temporarily approved more than 80 new telehealth services andlifted restrictions in order to increase access to virtualcare.

Seventy-four percent of telehealth users reported high levels ofsatisfaction, the report found, and providers likewise viewed thenew landscape favorably. According to McKinsey, 57% had a higheropinion of telehealth since the pandemic, and 64% said they weremore comfortable using it.

Still, actual usage of the services lagged behind consumerinterest, as providers expressed concerns over security, workflowintegration, the efficiency of telehealth compared to in-personvisits, as well as the future for reimbursements.

"This shift is not inevitable," the report said. "It willrequire new ways of working for a broad set of providers,step-change improvements in information exchange, and broadeningaccess and integration of technology."

Health care stakeholders, the report concluded, need to find newways of working with a broad set of providers, better integratetechnology and implement "step-change improvements" in informationsharing.

The report outlines five changesthat will be necessary before telehealth can realize its fullpotential. These changes include:

1. Scalingthe use of virtual urgent care
2. Scalingthe use of virtual office visits
3. Integrating "near virtual" office visits intothe care continuum
4. Virtualizing home careservices 
5. Tech-enabled home medicationadministration

"This value will not happen without concerted efforts by healthcare stakeholders, innovations in care models, adoption of newtechnologies, and supporting infrastructure," the report said.\

Read more: 

• Why more employees are embracingtelemedicine
• 6 tips for changing the telemedicineconversation
• Feds look to telehealth to rein in Covid-19coronavirus