Telehealth Stocks for the Win (TDOC, ISWH, NXGN)

The pandemic represents a disjunction in history for the healthcare system. The technology was already in place before the onset of the global health crisis to change how everything works for providers, patients, and insurers, increasing the efficiency on all sides and unlocking value for all parties. But there wasn’t a catalyst to push the monstrous bureaucracy past the tipping point to embrace the unknown, but preferable, reality.

The pandemic is that catalyst. And the new reality is rapidly coming into being.

As such, we take a look here at a collection of interesting opportunities in the Telehealth space that could provide investors with an opportunity, including: Teladoc Health Inc (NYSE:TDOC), ISW Holdings Inc (OTCMKTS:ISWH), and Nextgen Healthcare Inc (NASDAQ:NXGN).


Teladoc Health Inc (NYSE:TDOC) covers various clinical conditions, including non-critical, episodic care, chronic, and complicated cases like cancer and congestive heart failure, as well as offers telehealth solutions, expert medical services, behavioral health solutions, guidance and support, and platform and program services. Its platform enables patients and providers to have an integrated smart user experience through mobile, Web, and phone based accessed points.

This is one of the core plays in the space at this point given its prior commitment to the Telehealth revolution ahead of the advent of the pandemic.

Teladoc Health Inc (NYSE:TDOC) most recently announced that it is providing free, 24/7 general medical telehealth visits to residents, first responders and others directly impacted by Hurricane Laura which is set to have significant impact across the Texas and Louisiana Coasts and up through Arkansas.

According to the release, individuals who have been displaced or who cannot access medical care as a result of the hurricane can seek treatment from a board-certified, state licensed physician for any non-emergency illness by calling Teladoc directly at 855-225-5032. With the COVID-19 pandemic presenting an additional health risk, its vital that those impacted know they have immediate access to care in their time of need.

Even in light of this news, TDOC hasn’t really done much of anything over the past week, with shares logging no net movement over that period.

Teladoc Health Inc (NYSE:TDOC) pulled in sales of $241M in its last reported quarterly financials, representing top line growth of 85%. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($1.3B against $123.5M).


ISW Holdings Inc (OTCMKTS:ISWH) is a more speculative name, but it may also be the most underpriced relative to its performance trend and its growth prospects relative to its current tiny market cap, especially because it has recently launched a now commercially active subsidiary called Telecare Home Health. That is in addition to its existing Paradigm Home Health, which has strung together five consecutive quarters of strong sequential growth.

Specifically, the company just announced that its recently launched telehealth subsidiary, Telecare Home Health, LLC, has received its license from the State of Texas under Chapter 142 of the Texas Health and Safety Code to operate in Texas. In addition, the process of review toward accreditation is now underway for Telecare.

“Telehealth has become one of the most important growing innovations to emerge as a mainstream facet of the healthcare system over recent months, and we intend Telecare to become a key player in this narrative,” noted Alonzo Pierce, President and Chairman of ISW Holdings. “Telecare’s platform is built from the ground up to key off of first responder care. Telecare will transform the healthcare experience by creating an ecosystem of coordinated action that minimizes superfluous steps to bring healthcare providers, care protocols, and home health caretakers into synchronized activity to minimize costs and deliver the highest standards of ‘whole person’ home-based care to a growing community in Texas.”

According to the release, the Telecare referral intake process is fully electronic, with provider referrals opening a client relationship, coordinating care with providers, logging all consents, and assigning a home health caretaker, all achieved entirely electronically. Within twelve hours, an on-site assessment with a registered nurse is conducted, and full care services begin within 24 hours. The Telecare team is growing, and the Company intends to ramp up service across the state and to extend its service area into additional states over coming months.

ISW Holdings Inc (OTCMKTS:ISWH) also notes that Telehealth usage among US adults has been climbing significantly. According to a survey by Civic Science, on a month-over-month basis from February to March of this year, the number of respondents that reported having tried telehealth jumped from 11% to 17%. This marks a watershed transformation in the relationship between healthcare consumers and providers.

A recent report by Business Insider Intelligence predicts that this adoption will continue to climb – a conclusion that matches the Company’s in-house analysis. ISW Holdings, through its Telecare subsidiary, is engaged in a focus based on that analysis, with additional strategic steps in line with this vision to be announced over the near term.

ISW Holdings Inc (OTCMKTS:ISWH) has 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.


Nextgen Healthcare Inc (NASDAQ:NXGN) stores and maintains clinical patient information and offers a solution that provides a workflow module, prescription management, automatic document and letter generation, patient education, referral tracking, interfaces to billing and lab systems, physician alerts and reminders, and reporting and data analysis tools. Its products also comprise NextGen Enterprise PM, a practice management (PM) solution; NextGen Office, a cloud based EHR and PM solution; NextGen Mobile; and NextGen Electronic Healthcare Transactions.

In addition, it provides population health solutions, such as NextGen Population Health Analytics, NextGen Population Health Patient Care Management, and NextGen Population Health Performance Management; and patient engagement solutions comprising NextGen Patient Portal, NextGen Self Scheduling, NextGen Patient Pay, and NextGen Virtual Visits solutions.

Nextgen Healthcare Inc (NASDAQ:NXGN) recently announced the availability of the next generation of its behavioral health suite. Building upon an award-winning electronic health record (EHR) and practice management system, the NextGen Behavioral Health Suite is the industry’s only platform that integrates comprehensive physical, behavioral and oral health in one software solution.

“We chose the NextGen Behavioral Suite because it provides robust client results to boost whole-person care for our clients,” said Sherman Hayes, chief information officer for Geminus Corporation, a Regional Health Systems company. “Utilizing the platform has allowed us to broaden our outreach and services programs to deliver care to the community we serve.”

And the stock has been acting well over recent days, up something like 5% in that time. NXGN shares have been relatively flat over the past month of action, with very little net movement during that period.

Nextgen Healthcare Inc (NASDAQ:NXGN) generated sales of $130.9M, according to information released in the company’s most recent quarterly financial report. That adds up to a sequential quarter-over-quarter growth rate of -4% on the top line. In addition, the company has a strong balance sheet, with cash levels far exceeding current liabilities ($200.4M against $138.5M).



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