Since the unprecedented disruption caused by the pandemic, the U.S. healthcare system has undergone significant changes. The surge in virtual healthcare during the height of COVID-19 was followed by a notable decline as in-person services resumed. As we approach 2025, stakeholders are questioning whether virtual healthcare has fulfilled its early promises. Reports indicate a substantial drop in telehealth visits and investment, leading to skepticism about the effectiveness and sustainability of digital health solutions. However, certain areas like mental health and chronic disease management have seen lasting benefits from virtual care. The future of virtual healthcare hinges on addressing integration challenges, securing reimbursement models, and leveraging advancements like AI to enhance patient and provider experiences.

The Rise and Fall of Telehealth Usage

During the peak of the pandemic, telehealth emerged as a critical alternative to traditional healthcare settings. With in-person visits severely restricted, virtual platforms experienced rapid growth. However, as normalcy returned, telehealth utilization saw a dramatic decline. According to market research, telehealth visits dropped by nearly 46% between the second quarter of 2020 and the fourth quarter of 2022. This trend was consistent across various demographics, including age, race, and geographic location. The decrease in usage led to reduced investment in digital health technologies, with investors now prioritizing proven outcomes over potential.

The shift back to in-person care has raised concerns about the long-term viability of virtual healthcare. Stakeholders are questioning the clinical effectiveness and user engagement of these tools. Caroline Pearson, executive director of the Peterson Health Technology Institute, highlighted growing doubts about the performance of digital health solutions. By 2024, the market had become skeptical, necessitating a new approach that integrates virtual care more effectively into clinical workflows. Understanding where virtual healthcare has succeeded and failed is crucial for determining this new direction.

Sectors Benefiting from Virtual Healthcare

Despite overall declines, certain sectors have benefited significantly from the rise of virtual healthcare. Mental and behavioral health services, for instance, have seen a lasting transformation. Ateev Mehrotra, a health policy expert at Brown University, noted that roughly half of mental health visits in the U.S. are now conducted via video or phone, becoming standard practice. Additionally, some mental health clinicians have transitioned entirely to virtual-only practices, enhancing accessibility and engagement. Telebehavioral health visits remained high even as overall telehealth use declined, expanding access to essential services and supporting comprehensive condition management.

Remote patient monitoring (RPM) has also proven effective in managing chronic diseases. Surveys show that patients with chronic illnesses frequently use telehealth, and physicians believe it improves continuity of care. Leaders at Kaiser Permanente reported superior outcomes and better patient experiences through ongoing feedback on health status. Similarly, Providence's RPM programs have improved medical therapy adherence, diabetes control, and blood pressure management, reducing the total cost of care. Digital health solutions for musculoskeletal disorders have also shown promise, delivering clinically meaningful improvements in pain and function compared to usual care. These successes highlight the potential of virtual healthcare when integrated effectively into clinical care plans.