Telemedicine Will Grow 40 Percent Annually Over the Next 10 Years, Says Industry Expert

Business Wire, Dec 2, 1999

NEW YORK--(BUSINESS WIRE)--Dec. 2, 1999--

Industry grows from $6.8 billion in 1997 to $13.8 billion in 1998 igniting a rapidly growing trend

The global telemedicine industry will grow 40 percent annually over the next 10 years, forecasts industry expert Peter Leitner. The CEO of Waterford Telemedicine Partners, Inc., Leitner is also founder and chairman of Waterford Advisors, Inc. (www.waterfordadvisors.com), creators of the Waterford Telemedicine Index.

In 1998, the telemedicine industry grew worldwide to US$13.8 billion from the previous year's $6.8 billion. "Increasing consumerism, changing demographics, hardware price deflation and the proliferation of the Internet are the driving factors behind its rapid growth," says Leitner. "This estimate significantly exceeds most others because we use a broader definition of telemedicine and we assess it on a global basis."

"Over the next decade, the telemedicine industry will expand into new markets and service areas," says Leitner. "Furthermore, its rapid rise will have a profound impact on the delivery and quality of medical care worldwide. In the U.S. alone, we expect telemedicine will represent at least 15 percent of all health care expenditures by 2010."

To capture the full spectrum of the industry, Leitner and his firm use a new three-part `acid test' that defines telemedicine as "the use of (i) computer and telecommunications technology (ii) to provide health care of therapeutic benefit (iii) without regard to time-space." Leitner says, "These criteria address a much broader range of firms than the old definition of telemedicine," says Leitner, "which does not include the new technologies now available to patients and providers."

The strategic research and industry insights formed by Leitner and the analysts at Waterford Telemedicine Partners are detailed in the soon to be released "Telemedicine Industry Report 2000" (ISBN 0-9676642-0-9). Deborah R. Dakins, founding editor of Telehealth Magazine, and Leitner are the principal authors. The volume provides a comprehensive overview of the market; defines its drivers and perspectives; examines the role of providers, facilitators and infrastructure; and highlights opportunities and strategies in the telemedicine space.

"Companies in the telemedicine industry are striving to increase consumer, payor and clinician familiarity with telemedicine's benefits, namely enhanced patient care and operating efficiency," says Leitner. "Providers and payors earnestly seek these benefits especially in this era of balancing the economics and the quality of care. Patients can benefit further from increased access to health services - which includes measurable improvements in patient outcomes - and increased convenience. Companies poised to serve these needs will succeed in the worldwide market."

About Waterford Telemedicine Partners:

Founded by Waterford Advisors, Inc. in July 1999, Waterford Telemedicine Partners provides industry and company-specific research reports to institutional, corporate and individual investors and their advisers. The firm is headquartered in New York City.

About the Waterford Telemedicine Index:

The Waterford Telemedicine Index was created in 1997 by Waterford Advisors. Both narrow and broad versions of the index are maintained, comprised of fifty and 100 stocks, respectively. The narrow index is weighted by market capitalization, where as the broad index is weighted by Waterford's modified market capitalization method.

Editor's Note: The Telemedicine Industry Report: Publication Date: November 1999, Price $2,500.