The demand for virtual healthcare services like Teladoc Health, Inc. (NYSE: TDOC) has been shifted permanently by the novel coronavirus (COVID-19) pandemic, the company's CEO Jason Gorevic told CNBC Mad Money host Jim Cramer on Monday.
"[We're] on the verge of a new era for virtual care in the health-care system," Gorevic said, as reported by CNBC.
"We're certainly seeing a significant increase in volume, and I didn't exactly expect the president to be talking at a White House press briefing about telehealth."
"If you'd asked me that a few months ago, I would have said that's pretty unlikely," Gorevic added.
President Donald Trump earlier this month announced that Medicare recipients would be able to access telehealth services at no additional costs during the COVID-19 pandemic.
Why It Matters
Teladoc stock is up 100% year-till-date as demand for telecommunications services has increased.
With 46,442 confirmed cases of the coronavirus in the United States, healthcare infrastructure is overwhelmed with a shortage of protective gear for healthcare workers.
Without the necessary protective gears including masks, gowns, and eyewear, doctors, nurses, paramedics, and other workers risk being infected with the virus themselves. This has led to authorities recommending increased use of telehealth services to curb the spread of the virus.
Teladoc's shares closed 17.77% higher at $167.44 on Monday. The shares traded another 5.11% higher at $176 in the after-hours session.
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