USA — Cosmos Health Inc., a global healthcare group specializing in nutraceuticals and distributing pharmaceuticals, OTC medications, and medical devices, has signed a definitive agreement to acquire ZipDoctor Inc. from American International Holdings Corp (AMIH) for an undisclosed amount.
The deal was inked on March 17, 2023, and is expected to be completed on April 3, 2023.
ZipDoctor is a direct-to-consumer subscription-based telemedicine platform that offers affordable and unlimited access to board-certified physicians and licensed mental and behavioral health counselors and therapists.
The platform is available in English and Spanish throughout the United States via phone or secure video chat. Customers can subscribe through ZipDoctor’s website and pay a monthly fee, depending on whether they are individuals, couples, or families.
Greg Siokas, the CEO of Cosmos Health, expressed excitement at the company’s acquisition of ZipDoctor and believes that with the right investment, ZipDoctor can become a significant player in the telehealth industry.
Siokas also plans to expand ZipDoctor’s current primary care and mental health services by providing access to doctors for additional medical treatments related to men’s and women’s health and wellness issues, weight loss, and similar treatments.
Jacob Cohen, Director of American International Holdings Corp., expressed confidence that Cosmos Health’s experience in successfully developing and operating healthcare and wellness-related businesses will serve as a powerful recipe for ZipDoctor’s future success.
The US telehealth market has been experiencing significant growth in recent years, and this trend is expected to continue.
According to Nova One Advisor, the U.S. Telehealth market is projected to grow from US$23.8 billion in 2021 to US$309.9 billion by 2030, with a compound annual growth rate (CAGR) of 45.1% from 2022 to 2030.
One of the major drivers of the telehealth market is the increasing demand for remote healthcare services, especially during the COVID-19 pandemic when social distancing and lockdown measures made it difficult for patients to visit healthcare facilities.
Telehealth services provided a safe and convenient alternative for patients to receive medical care while avoiding the risk of exposure to the virus.
Another driver of the telehealth market is the shortage of healthcare specialists and primary care physicians in the U.S.
The Association of American Medical Colleges (AAMC) estimates that there will be a shortage of between 37,800 and 124,000 physicians by 2034.
Telehealth services can help bridge this gap by allowing healthcare providers to remotely monitor and treat patients, regardless of their location.
The U.S. government has also been supportive of telehealth services, as evidenced by the expansion of reimbursable telehealth codes for the 2021 physician fee schedule by the Centers for Medicare and Medicaid Services (CMS).
This has made telehealth services more accessible and affordable to patients and has encouraged more healthcare providers to adopt telehealth as a viable option for delivering medical care.
This also means that healthcare providers who offer telehealth services can now receive reimbursement from CMS for a wider range of medical services provided remotely, such as virtual consultations and remote patient monitoring.
The move is also seen as a recognition of the growing importance of telehealth services in the healthcare industry and a step towards making telehealth a permanent fixture of the healthcare system.
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