Contribute Try STAT+ Today

In little more than a year, telehealth has gone from a backwater of American health care to a booming business. Billion-dollar valuations, once a rarity, are now common as companies seize on a dramatic increase in demand to raise money and enter the public markets during the coronavirus pandemic.

But the overnight change in fortunes for the industry is also raising alarms of a bubble, especially as more telehealth providers merge with shell companies known as SPACs — special purpose acquisition corporations — that offer a faster and easier road to going public. Experts in health finance said the rush to capitalize on sudden changes in supply and demand may cause companies and investors to overlook significant risks, such as a reemergence of regulatory barriers waived during the pandemic or clinical studies that may call the value or quality of telehealth care into question.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!


What is it?

STAT+ is STAT's premium subscription service for in-depth biotech, pharma, policy, and life science coverage and analysis. Our award-winning team covers news on Wall Street, policy developments in Washington, early science breakthroughs and clinical trial results, and health care disruption in Silicon Valley and beyond.

What's included?

  • Daily reporting and analysis
  • The most comprehensive industry coverage from a powerhouse team of reporters
  • Subscriber-only newsletters
  • Daily newsletters to brief you on the most important industry news of the day
  • STAT+ Conversations
  • Weekly opportunities to engage with our reporters and leading industry experts in live video conversations
  • Exclusive industry events
  • Premium access to subscriber-only networking events around the country
  • The best reporters in the industry
  • The most trusted and well-connected newsroom in the health care industry
  • And much more
  • Exclusive interviews with industry leaders, profiles, and premium tools, like our CRISPR Trackr.