The Growing Telehealth Case for ISW Holdings Inc (OTCMKTS:ISWH)
Telehealth is booming. But it isn’t a “normal” boom. A normal boom is when some new shift in technology or some conspiracy of social factors opens up a new frontier for demand, and businesses compete by the droves to fill that demand.
Telehealth is a little different because all of the factors now powering the boom have been in place arguably for years. But the regulatory context wouldn’t allow those innovations to become manifest in the marketplace. However, as we all now know, the big catalyst that came along and changed all that was the coronavirus pandemic.
Now, the flood gates are open and competitive names are flowing in to fill the void left by the evacuation of regulatory measures. One such company is ISW Holdings Inc (OTCMKTS:ISWH).
Formerly a spirits and wellness business, ISWH has been reborn over the past year as a diversified portfolio company comprised of essential business lines that serve consumer product demands. This model now includes commercial-stage operations in the Telehealth and Home healthcare markets, as well as development-stage operations in the blockchain space.
As telehealth continues to explode into a “new normal” defining the future of the US healthcare system, companies like ISWH will be reaping the rewards of having established tangible operations in the space ahead of the crowd.
A New Way
Make no mistake about it: The Genie isn’t going back in the bottle. There’s a new way of doing business in the healthcare space, and companies like ISW Holdings Inc (OTCMKTS:ISWH) have an inside edge on that emerging competitive landscape.
The company has already demonstrated rapid topline growth in its home healthcare operations with five consecutive quarters of sharp sequential growth. Its most recent quarter showed revenues of nearly $250K, representing year-over-year growth of 79% (and 244% for the first half of the year) compared to comparable periods in 2019.
But this trend seems more likely to accelerate rather than taper off based on our simple analysis. A big factor in that outlook – again our own analysis based on judgement and data from the company – is that it is expanding, with the recent establishment, licensing, and ramp-up of its new Telecare subsidiary, which recently received its license from the State of Texas under Chapter 142 of the Texas Health and Safety Code to operate in Texas.
According to a recent release from ISWH, the Telecare referral intake process is fully electronic, with provider referrals opening a client relationship, coordinating care with providers, logging all consents, and assigning a home health caretaker, all achieved entirely electronically. Within twelve hours, an on-site assessment with a registered nurse is conducted, and full care services begin within 24 hours. The Telecare team is growing, and the Company intends to ramp up service across the state and to extend its service area into additional states over coming months.
In other words, ISWH’s Telecare subsidiary is a telehealth efficiency solution that is now operational and starting to drive additional growth for the company in Q4.
The Game Theory Landscape
We would also note that the company said, “the process of review toward Medicare accreditation is now underway for Telecare”. That’s important in understanding this story as well. Medicare accreditation will mean Telecare services will be reimbursable through Medicare, creating an economic incentive for market share in the system overall.
As you learned in high school economics, when you lower the price of something, demand for that thing increases. Medicare reduces the out-of-pocket expense by subsidizing services. That effectively drives up demand.
This is what analysts call “managing the game theory landscape”. Everything a business does can be understood as part of a game theory landscape built of path-dependent choice matrices. Success can be seen, from this perspective, as a function of triggering the most optimal pathways in the available system of path-dependent choice opportunities.
Right now, with its established success in the Texas home healthcare space, ISW Holdings Inc (OTCMKTS:ISWH) triggered an important opportunity territory in that landscape by adding a telehealth dimension to its vision and by working toward adding Medicare accreditation to that equation.
“Telehealth has become one of the most important growing innovations to emerge as a mainstream facet of the healthcare system over recent months, and we intend Telecare to become a key player in this narrative,” noted Alonzo Pierce, President and Chairman of ISW Holdings. “Telecare’s platform is built from the ground up to key off of first responder care. Telecare will transform the healthcare experience by creating an ecosystem of coordinated action that minimizes superfluous steps to bring healthcare providers, care protocols, and home health caretakers into synchronized activity to minimize costs and deliver the highest standards of ‘whole person’ home-based care to a growing community in Texas.”
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Published at Mon, 12 Oct 2020 06:23:10 +0000