ISW Holdings Inc (OTCMKTS:ISWH) is an interesting case study as a small-cap stock trading on the OTC.
The company is a diversified player, with commercial-stage operations in the Telehealth and Home healthcare markets, as well as development-stage operations in the blockchain space. The company also has other operations, including exposure to the spirits, wellness, and renewable energy markets.
But, today, we want to talk about its exposure to Telehealth because of the remarkable elevation underway for that market space recently given the virus and the dramatic regulatory tailwinds put in place over recent months to open the doors to powerful growth in Telehealth this year.
The Telehealth Shift
The Telehealth shift is as real as anything else driving the markets in 2020, with regulatory changes and technological aspirations at the forefront of the conversation.
Telehealth offers a compelling solution.
The more instances where healthcare can be delivered without placing healthcare workers in contact with potentially contagious carriers of the virus, the better off we will all be. Patients can avoid exposure to infection at medical facilities and healthcare providers can avoid exposure to potentially contagious patients.
As a result, in response to the virus, the White House has introduced a number of key regulatory changes that open the door for companies like ISW Holdings Inc (OTCMKTS:ISWH) to step up the plate faster and on a wider basis in the telehealth marketplace, including the expansion of telehealth services covered by Medicare, a lowering of the strict HIPAA bar for clinical interactions with patients over digital platforms, and the dismantling of interstate barriers – healthcare providers no longer need to be licensed in the patient’s state.
These changes can be seen as doubly important for a company that has been developing solutions that imply a higher ROI on that development investment on a per unit basis, and which signal a desperate level of demand waiting upon launch as each measure is rolled out.
We would also anticipate the potential for federal and state financial aid, subsidization, and non-dilutive grant funding allowing companies at the head of this pack to expand faster and with less balance sheet risk for their shareholders.
Geographically Agnostic Healthcare is Here to Stay
One of the main drivers in play for ISW Holdings Inc (OTCMKTS:ISWH) is now precisely this revolutionary shift to non-traditional delivery of healthcare services. The company has officially established itself as a key player in this space just as the space is emerging as perhaps the most important growth theme defining the next decade.
You remember how healthcare used to be delivered: you went to the doctor and then to the pharmacy – and hopefully, not to the hospital.
Now, the situation has evolved into a less costly, more convenient, and less insular reality for providers, insurers, and many other groups.
The new model coming into existence – helped along by the virus – is a more technologically intermediated process, with patients doing far more from home and over the net. And providers and insurers playing along because they really don’t have a choice, and it offers a more cost-effective process.
ISWH is participating directly in that transition, with commercial-stage operations, including growing revenues, in both home healthcare and telehealth solutions now in play in the marketplace. We would expect more from the company on its evolution into the Telehealth market in the very near future. But the foundation has already been laid.
ISW has already demonstrated rapid topline growth in its home healthcare operations with five consecutive quarters of sharp sequential growth. Its most recent quarter showed revenues of nearly $250K, representing year-over-year growth of 79% (and 244% for the first half of the year) compared to comparable periods in 2019.
That represents a base upon which the Telecare business can grow now that telehealth technology has been integrated into the company’s already established home healthcare business.
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