Best Buy looks at the business of telehealth

Forbes reports…

As Best Buy has said, health monitoring services for seniors and other digital health initiatives mark a key part of its growth strategy. The retailer over the next 10 to 20 years could generate anywhere between $11 billion and $46 billion in cumulative revenue from its commercial health business, according to Morgan Stanley analysts in a 64-page report released Monday. How significant is that? The high end of that range tops Best Buy’s roughly $43 billion in annual sales in 2018.

“This would be material,” the report said. “We don’t think the market fully grasps Best Buy’s commitment to health….The company has shifted its focus to tech- enabled senior care…. We believe Best Buy has a durable competitive advantage in senior care, its niche in the healthcare services market.”

And details a few things Best Buy needs to happen…

To be sure, for Best Buy to reap that long-term revenue opportunity, several things have to work in its favor, the report said. For one, the largest U.S. health insurers have to accept and cover Best Buy’s services, and Best Buy needs to see “a high rate” of adoption by seniors. In the nearer term, Morgan Stanley estimated the business could add as much as $2 billion in cumulative revenue for Best Buy through 2025.

Total U.S. healthcare spending is expected to reach about $3.6 trillion this year, or nearly 15 times consumer spend in Best Buy’s bread-and-butter consumer electronics category, according to the report. The number of people aged 65 or older in the U.S. is expected to grow by more than 50% from 50 million over the next two decades, the report added.

Best Buy is “evolving from sales of wearable devices and other healthcare technology to include the provision of healthcare services for seniors,” the report said. Healthcare “is shaping up to be Best Buy’s next frontier of growth.”

This entry was posted in Healthcare, MN, Vendors by Ann Treacy. Bookmark the permalink.

About Ann Treacy

I have a Master’s Degree in Library and Information Science. I have been interested or involved in providing access to information through the Internet since 1994, when I worked for Minnesota’s first Internet service provider. I am pleased to be a part of the Blandin on Broadband Team. I also work with MN Coalition on Government Information, Minnesota Rural Partners, and the American Society for Information Science and Technology.

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