Please ensure Javascript is enabled for purposes of website accessibility

FCC Approves $200 Million Program to Boost Telehealth Services

By Prosper Junior Bakiny - Apr 3, 2020 at 3:58PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Medical care delivered remotely is in higher demand than ever as the COVID-19 pandemic intensifies.

As the COVID-19 pandemic has grown, most U.S. states have implemented measures to reduce people's face-to-face interactions in hopes of curbing the spread of the disease. However, those who are self-isolating may still need medical attention. Fortunately, there is a way to provide some forms of care patients while they remain in the comfort of their homes -- telemedicine. 

And to ensure that telehealth services are available to as many people as possible during this crisis, the Federal Communications Commission on Thursday initiated a $200 million program to fund telehealth services for medical providers. Funding for this program will come from the Coronavirus Aid, Relief and Economic Security (CARES) Act, which was officially signed into law on March 27. Said FCC Chairman Ajit Pai:

With the adoption of the $200 million COVID-19 Telehealth Program, the FCC can now take immediate steps to provide funding so that more patients can be treated at home, freeing up valuable hospital beds for those who most need them and reducing the risk of exposure to the virus.

Nurse video chatting with patient

Image Source: Getty Images.

Demand for telemedicine services has skyrocketed over the past few weeks. Teladoc Health (TDOC 4.18%) -- one of the leading providers -- recently announced that it had experienced a significant increase in patient visit volume. And given that the COVID-19 pandemic in the U.S. is only getting worse, the demand for these services will likely continue to rise. In light of that, it isn't surprising that Teladoc's stock has performed much better than the broader market of late. Year to date, shares of the healthcare company are up by 87.4%, while the S&P 500 is down by 21.8%. 

Prosper Junior Bakiny has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Teladoc Health. The Motley Fool has a disclosure policy.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Teladoc Health, Inc. Stock Quote
Teladoc Health, Inc.
TDOC
$39.58 (4.18%) $1.59

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
389%
 
S&P 500 Returns
125%

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 08/12/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.