During the pandemic, telehealth providers were hailed as heroes. Now, however, they seem to be losing prominence.
In a recent move reflecting this shift, Oregon Health & Science University announced on July 2 that it would be cutting its telehealth nursing unit, established in March 2020. Once celebrated for its statewide service, this unit’s closure symbolizes the evolving landscape of healthcare access in the post-pandemic era. As telehealth usage declines, AI and other virtual technologies are stepping in alongside a resurgence in in-person doctor visits.
“We’re witnessing the decline of telehealth 1.0,” said Robin Glass, president of virtual care and health navigation company Included Health, in an interview with Fierce Healthcare. “The initial model, which relied heavily on transactional interactions between patients and clinicians without focusing on holistic, longitudinal care, is becoming outdated. It hasn’t served patients as well as it should have and doesn’t meet the modern consumer’s expectations. Additionally, it fails to provide the necessary value for healthcare spending.”
This sentiment is reflected in the market, though not all agree with Glass. Telehealth as a business model has indeed faced setbacks. For instance, Amazon recently merged its pay-per-visit telehealth service with its One Medical program, now rebranded as Amazon One Medical Pay-per-visit. Neil Lindsay, Amazon’s senior vice president of Health Services, pointed to “impersonal care” as a significant barrier to profitability.
Similarly, Walmart shut down its telehealth venture on April 30, citing comparable reasons. However, the company sold this division to healthcare technology startup Fabric, signaling continued faith in the model’s potential. Fabric, which rebranded from Florence in early 2023, focuses on automating clinical and administrative tasks in healthcare. This acquisition will bolster Fabric’s presence in the employer market, leveraging Walmart’s MeMD division that served 30,000 employers and 5 million employees.
Fabric’s telemedicine platform for health systems, employers, and payers features products designed to streamline both in-person and virtual patient visits. Using conversational AI, these tools improve provider and patient experiences while enhancing operational efficiency.
Technological solutions like those developed by Fabric are expected to shape the future of telehealth, integrating AI and virtual reality. Fabric’s care enablement system uses AI-powered clinical intelligence to triage and route patients to the most appropriate care points, optimizing treatment across virtual and in-person workflows.
One emerging innovation is the use of holograms in healthcare. Crescent Regional Hospital near Dallas has introduced the “Holobox,” a 3D system projecting life-sized holograms of doctors for real-time consultations. Developed by Dutch firm Holoconnects, this technology requires only electricity and an internet connection. The Holobox features anti-glare glass, a transparent LCD screen, hi-fi speakers, and a multi-touch operating system, enhancing patient engagement with live or pre-recorded video consultations.
Steve Sterling, Holoconnects’ North American managing director, highlighted the system’s potential to revolutionize patient-doctor interactions by providing real-time access to specialists, saving valuable time. Crescent Regional is the first U.S. hospital to adopt this technology, with plans to extend its use to rural and underserved areas. Holoconnects also aims to deploy smaller, portable versions to broaden its reach.
The decline in traditional telehealth marks a transition to more sophisticated, AI-driven healthcare solutions and a return to in-person visits, reflecting the evolving needs and expectations of healthcare consumers.
