As the second wave of the coronavirus hits, Well Health Technologies (TSX:WELL) stock is seeing rapid growth. Technology has always been underappreciated and underutilized in primary care healthcare. But today, the coronavirus has brought its merits to light like never before. We now know two things for sure.
Firstly, today in this pandemic, we need technology in primary healthcare like never before. It is allowing us to access our doctors while maintaining distancing. Secondly, the benefits of technology in primary healthcare are multi-faceted. Technology will continue to transform and improve healthcare for the long haul.
Here are the reasons why WELL stock is a stock to buy.
Well Health stock has a long runway for growth
Well Health’s stock price has shot up in 2020. This is no surprise, as demand for telemedicine has skyrocketed in the pandemic. Well Health’s revenue in the first six months of 2020 increased 40%. In 2019, Well Health’s revenue increased 211%.
With a $938 million market capitalization and a rapidly growing healthcare asset base, Well Health continues to transform the primary healthcare industry. The company continues to acquire clinical and digital healthcare assets.
As the second wave hits, Well Health’s clinics and services will be even more in demand. And the benefits of telemedicine will become more and more obvious. With this, Well Health stock will continue its rise.
Well Health is changing the Canadian healthcare landscape
Well Health has a fast-growing digital portfolio of healthcare assets. It has 2,000 clinics, over 10,000 supported general practitioners, and over 15 million registered patients. The company’s clinic portfolio is also becoming more and more sizable. It has 19 wholly-owned clinics and approximately 180 doctors at these clinics.
The primary healthcare system is one of the last big industries that has yet to digitize. According to Well Health reports, the Canadian primary care industry is a $250 billion industry. Physician spending accounts for approximately 15.4%. The industry is plagued by underinvestment, fragmentation and a lack of technology.
Well Health aims to change this. The benefits are big and they are clear. Digital tools can increase operational efficiency. They can improve patient care. They can allow physicians to focus more on what matters.
Virtual care ensures easy access to doctors. This has been key in the coronavirus pandemic. It will be even more key as the second wave hits. Waiting room automation allows for shorter wait times for patients. These are examples of what technology can do. But there are also more significant advantages.
WELL stock: Precision medicine is the future
Precision medicine “proposes customizing healthcare decisions, treatments, practices, and products to suit individual patient needs.” It basically means identifying best approaches tailored for a specific patient. Genetic, environmental, and lifestyle factors all play a role in determining a patient’s treatment. We can easily see how a digital database of information on each patient is key for this purpose.
In the future, a digital database with patients’ DNA can take all this a step further. Pharmacogenomics is the study of how genes affect a person’s response to particular drugs. A database that has genetic data, biological samples, and other health information will step up healthcare into a new age.
Foolish bottom line
Well Health stock has so much going for it. It has a significant runway of growth ahead as it participates in the digitization of the healthcare system. Patient care is improving and primary care offices are becoming more efficient. WELL stock trades at just over $6.50 at the time of writing. It has risen 130% in the last three months. Expect more big increases in the short, medium, and long term.
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Fool contributor Karen Thomas has no position in any of the stocks mentioned.