Cisco Partners American Well to Boost Telehealth Services
Cisco CSCO recently teamed up with telehealth service provider, American Well, in a bid to bridge the gap between home television sets and doctor’s clinic.
The companies intend to adapt in-home TVs to work as American Well’s patient CarePoints to accelerate telehealth care delivery, primarily aimed at individuals with serious ailments and elderly care.
Notably, American Well helps connect care professionals with millions of consumers via video consults, so that users are able to access services on a 24-hour basis. Notably, users will be able to use these services even during absence of primary care physician with the assistance of remotes.
Into the Headlines
Per CNBC, Cisco is working on the hardware which connects to the TV at home and monitors patient’s health to advance telehealth services. However, financial terms of the project have been kept under wraps.
Cisco aims to develop an adaptable device, which is easy to use and can connect to Wi-Fi. The patients can connect to caretakers via video call, which is expected to enhance service delivery.
With an aim to bolster engagement further, the device is likely to be enabled to utilize audio and facial recognition technology. Nonetheless, Cisco remains focused on privacy and content parameters of the technology involved.
These innovative initiatives are instilling confidence in the stock. Notably, shares of Cisco have returned 27.5% in the past year, outperforming its industry’s rally of 24.6%.
Aging Population Boosts Demand for Home Monitoring Devices
Growing demand of caretakers for the elderly in the backdrop of rising aging population calls for personalized care systems. Technology is disrupting major sectors and homecare facilities are no exception to the trend.
We believe innovation in technology with Cisco’s initiatives will lead to improvement in methods used to address the challenges associated with an aging population.
Per World Health Organization data, world’s population over 60 years of age is anticipated to hit approximately 2 billion by 2050 compared with 900 million recorded in 2015.
Moreover, increase in chronic ailments call for robust telehealth service delivery solutions. However, strategic technological advancements in telecommunication have opened new avenues in telehealth market, which bodes well for the project.
Per a report from Global Market Insights, as revealed by Reuters, global telehealth market is projected to hit $130.5 billion by 2025, with United States telehealth market surpassing $64 billion.
Moreover, TV medium selection over laptops and smartphones is expected to provide leverage to the project, as it is easier and more accessible for the elderly to use.
The technology companies are increasingly focusing on providing advanced healthcare solutions. IBM’s recent collaboration with Cera Care to explore the utility of LiDAR sensors for elderly care is quintessential in this regard. Moreover, Apple is updating its smartwatch with new features for elderly care, like identifying fall detection incidence, to name one.
We believe Cisco’s strength in networking device manufacturing will aid in bringing the device to the market faster and enhance business prospects.
Zacks Rank & Other Key Picks
Currently, Cisco carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks worth considering in the broader sector are eGain Corporation EGAN, Rosetta Stone Inc. RST and j2 Global, Inc. JCOM, each sporting Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Long-term earnings growth rate for eGain, Rosetta Stone and j2 Global is pegged at 30%, 12.5% and 8%, respectively.
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