The United States continues to lead the way in telemedicine investments, boasting over 2,472 deals between 2015 and 2024, according to a recent report by Drake Star. This dominance underscores the increasing maturity and consolidation of the telemedicine market, with the UK trailing as the second most active region.
While the number of new players entering the telemedicine space has declined, mergers and acquisitions are on the rise. This trend suggests a strategic move towards strengthening existing platforms and expanding service offerings. Notably, the integration of artificial intelligence (AI) is emerging as a significant driver behind these acquisitions.
“The integration of artificial intelligence into healthcare and particularly into telemedicine is one of the most transformative trends shaping the sector in 2025,” stated Lawrence Giesen, a partner at Drake Star. “AI is no longer seen as an add-on feature; it’s becoming central to competitive advantage, operational efficiency and clinical differentiation.”
This evolving landscape presents significant opportunities for the nursing home industry. Telemedicine can enhance resident care by providing remote consultations with specialists, improving access to mental health services, and enabling continuous monitoring of vital signs. The acquisition of patient monitoring company care ai by Stryker, a firm whose technology is used by providers like Ecumen and Signature Healthcare, highlights this growing trend.
Furthermore, the stabilization of the telemedicine market after a period of pandemic-driven growth suggests a more sustainable and reliable environment for investment and adoption. As valuations normalize and transactions increase, nursing homes can explore partnerships with established telemedicine providers to enhance their service delivery and potentially improve operational efficiency.
“After the resulting consolidation, valuations appear to be normalizing and transactions are increasing,” the Drake Star report noted.
For nursing home operators and administrators, staying informed about these developments in the telemedicine market is crucial. Embracing telehealth solutions can lead to improved resident outcomes, reduced costs, and a more competitive edge in the evolving healthcare landscape. The dominance of the US market signals a wealth of innovation and potential partnerships that the nursing home industry can leverage to enhance the quality of care they provide.