VIRTUAL CARE: $41 BILLION OPPORTUNITY TRANSFORMING HEALTHCARE
- hej0305
- Aug 3
- 9 min read
Market Growing At 18.6% CAGR
Virtual care is rapidly emerging as the next major growth engine for hospitals and healthcare systems. By extending care beyond the four walls of the hospital and into patients' homes, workplaces, and daily routines, virtual care enables proactive, personalized, and continuous support that improves outcomes and reduces costs.
The opportunity is massive: chronic conditions, post-acute care, and preventive health can now be managed remotely through a growing ecosystem of smart devices, wearables, remote monitoring tools, and AI-enabled platforms.
Hospitals that seize this moment can dramatically expand their reach, improve patient retention, and unlock high-margin, scalable recuring revenue streams aligned with value-based care. But the race is on. Tech-native disruptors, retail clinics, and virtual-first networks are already capturing patients once loyal to traditional systems. The threat isn’t coming, it’s here.
What follows is a strategic roadmap:
Part I Look at the size of the opportunity hospitals are uniquely positioned to seize.
Part II A clear-eyed view of the competitive risks if they don’t act, and finally
Part III A focused playbook for what it takes to win.
This is more than an innovation moment, it’s an inflection point. Those who move now will define the future of care. Those who hesitate may not be part of it.
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PART I – The Opportunity
GOLDMINE IN PLAIN SIGHT: $150M in New Revenue Just Five Years Away
Across the U.S., 1,300 mid-to-large hospitals sit on a business opportunity that’s hiding in plain sight: virtual care. These institutions, just 21% of all hospitals, account for 65–75% of total hospital revenue. With scale, infrastructure, and patient loyalty already in place, they’re perfectly positioned to unlock a new revenue engine that extends beyond brick-and-mortar walls and into the homes and routines of their patients. And the numbers are staggering.
These aren't blue-sky projections, they’re grounded in Medicare reimbursement codes, achievable care models, and validated by real-world hospital performance. When applied to the broader hospital segment, this opportunity reaches well into the tens of billions in untapped, recurring revenue.
REVENUE REALITY: $250 per Patient, per Month
Virtual care is much more than video visits. It’s a reimbursable, scalable care platform built on six Centers for Medicaid and Medicare Services [CMS]-backed programs, including Remote Patient Monitoring (RPM), Chronic Care Management (CCM) and Advance Primary Care Management (APCM).
Just those three alone offer a median monthly billing opportunity of $344 per patient. Our model uses a more conservative figure of $250 per patient/month which is well within what current regulations support and what payers are actively promoting.
These services can be delivered with low capital outlay, by remote or mid-level clinical staff, using AI to automate workflows. The result? A care platform that scales like SaaS with margins that rival ambulatory surgery centers, but without the real estate, equipment, or staffing constraints.
FROM 2% TO 30%: An Achievable Growth Arc
Our model projects a ramp from 2% to 30% PCP patient panel adoption across five years, starting with just 44 patients per doctor and scaling to 660. And this is only based on patients within a hospital's existing PCP panels. It doesn’t yet factor in the larger population, the 60–80% of hospital patients not currently tied to in-house PCPs—which represents a substantial upside.
FROM PILOT TO POWERHOUSE: Virtual Care’s Revenue Trajectory
A conservative adoption model shows how virtual care evolves into a core business engine.
Hospital Revenue $1 Billion --- 350 Bed --- 70 Primary Care Physicians (figures annualized)
PROOF, NOT PROMISES
This is already happening. At Holy Cross Hospital, Remote Patient Monitoring reached 10% of hospital revenue. These aren’t theories, they’re validations. The question isn’t whether virtual care will scale, it’s who will own the patient relationships, data and revenue when it does.
The Crisis Your Hospital Can Solve (and turn into a scalable advantage)
Virtual Care isn’t just about improving margins—it’s about fixing what’s broken in healthcare. Across the U.S., millions of people with chronic conditions are slipping through the cracks of a strained, outdated system:
20-50% of people with chronic conditions remain undiagnosed
20-30% of diagnosed patients don't receive adequate treatment
Only 30-60% of treated patients achieve optimal disease control
Each percentage point isn’t just lost revenue, it is problems left untreated, conditions unmanaged, and patients who could have been helped with earlier, smarter intervention.
Hypertension alone illustrates the scale. 48% of U.S. adults have it, but 40% are unaware of their condition. Of those diagnosed, 14% aren’t receiving treatment. The result? Over one-third of all ER visits are related to hypertension, which is an entirely preventable crisis. Virtual Care solves this by giving hospitals the tools to identify, treat, and manage chronic conditions before they escalate.
HEALTHCARE DELIVERY IS BREAKING (And How Virtual Care Fixes It)
The traditional model of care isn’t just inefficient—it’s collapsing under its own weight:
PCPs average just 15 minutes per visit
Each manages 2,000+ patients
44% of patients skip primary care altogether and go straight to the ER, and
59.5% of ER visits are for chronic conditions that could be remotely managed
Virtual Care flips this equation. It offers patients continuous, convenient, always-available care, especially those most at risk. Through smart devices and secure networks, physicians can monitor patients in real time, supported by AI-driven insights and intelligent automation. Instead of reacting to crisis, doctors are empowered to deliver preventive, personalized care at scale—often without the need for in-person appointments.
For hospitals, this isn’t just better care. It’s better economics, higher retention, reduced readmissions, and a chance to lead with purpose and profitability.
From Heads in Beds to Health in Communities
The U.S. healthcare system is undergoing a seismic shift. The Fee-for-Service model that is built on volume, visits, and admissions, is giving way to Value-Based Care, where success is measured by outcomes, not activity. With Medicare and private payers accelerating bundled payments, shared savings, and quality-linked incentives, hospitals face a pivotal question: Will we react or lead?
Virtual Care Makes Population Health Profitable
Traditionally, managing population health has been viewed as a cost-control mandate. Virtual Care changes the economics. By extending your reach beyond the four walls of the hospital, you can manage larger patient panels, provide continuous engagement, and drive qualified referrals back to core service lines.
This creates a predictable, high-margin revenue stream, one that significantly outperforms traditional primary care economics.
Build a New Revenue Ecosystem Around the Patient
Virtual Care also unlocks a broader service ecosystem centered on meeting real patient needs. Imagine post-surgical patients automatically connected to trusted services: transportation, home health aids, nutrition delivery, even home safety upgrades.
By integrating these into the virtual care platform and tying them to IoT-enabled devices, you position your hospital as the central hub in a patient’s life. This enables new, ethical monetization channels while dramatically improving outcomes and satisfaction.
Outcomes That Drive Reputation and Revenue
Programs like Remote Patient Monitoring (RPM) don’t just prevent complications, they strengthen your institution’s performance on every critical metric:
Geisinger cut hospital readmissions by 44% using RPM.
Mass General Brigham saved over $10 million through Accountable Care Organization initiatives.
Better outcomes lead to higher star ratings, fewer readmission penalties, stronger retention, and increased reimbursement under value-based programs like HRRP. In this model, doing what’s best for the patient is also what’s best for the bottom line.
But this opportunity has a clock on it. Virtual-first disruptors are already moving in, capturing patients that hospitals were built to serve. What happens next isn’t just growth or stagnation, it’s relevance or retreat. The threat isn’t coming. It’s here.
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Part II – The Competitive Risk
Why Virtual Care Is Healthcare’s “Amazon Moment”
The world is already connected - healthcare just hasn’t caught up. Over 5.4 billion people, 67% of the global population, are online, and most of that connectivity lives in the mobile devices we carry every day. Yet the healthcare system continues to rely on physical visits, slow follow-ups, and fragmented care.
The warning signs are clear. When Amazon offered a faster, smarter, more convenient way to shop, traditional retailers were slow to respond. Walmart dismissed the threat until it was too late. In 2024, Amazon surpassed Walmart in total revenue and continues to outpace it with twice the growth rate. The same disruption is coming for healthcare.
Virtual Care is healthcare’s one-click moment. It eliminates the need for unnecessary in-person visits—just as Amazon eliminated trips to the store. It expands access, reduces friction, and puts the patient experience first. Hospitals that hesitate may find themselves playing catch-up in a market they used to own.
The Competitive Threat You Can’t Ignore
While health systems debate, disruptors are executing. The U.S. Remote Patient Monitoring market alone is growing at 18.6% CAGR, projected to hit $41.7 billion by 2028. That’s just one slice of the broader Virtual Care pie—and corporate players are growing faster than hospitals can respond.
For the first time in 2024, corporate entities own more physician practices (30.1%) than hospitals (28.4%).
Optum, a UnitedHealth division, is now affiliated with 1 in 10 U.S. physicians.
CVS Health (via Oak Street and Signify Health) and Amazon’s One Medical are scaling rapidly—Oak Street targets 300+ clinics by 2026.
Private equity has doubled its footprint in physician practices in two years.
Telehealth startups raised $29.1 billion in 2021. This is not a passing trend.
These players aren’t waiting for hospitals to lead. They’re building digital-first ecosystems that meet patients where they are: online, on mobile, and on-demand.
Consolidation Is Not a Moat
Hospitals have long relied on consolidation by acquiring regional systems, building brand power, and negotiating payer contracts to act as a shield. But disruption doesn’t respect borders.
Consider the taxi industry. It built a fortress of regulation and market dominance, until Uber showed up. Within three years, Uber had sparked strikes in Paris, lawsuits in New York, and protests in London. Within a decade, it had taken over 90% of key metro markets, including New York.
Virtual Care resembles Uber strategy. It bypasses the waiting room. It scales faster than brick-and-mortar. And it meets consumer expectations shaped by tech, not tradition.
The moat is shrinking. The gate is open. And new players are pouring in.
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Part III – Playbook to Win
What It Takes to Win
Virtual Care is not a side hustle. It’s your next flagship business. Most hospitals have tested the waters by dabbling in telehealth, launching pilot programs for Hospital-at-Home—but too often these initiatives are bolted onto legacy structures. The result? Sluggish impact. Limited scale. Missed opportunity.
To compete, health systems must stop treating Virtual Care as an IT project and start running it like a high-growth business. That means giving it dedicated leadership, independent workflows, and a strategic roadmap that treats virtual care as your next $100M+ business unit—not a feature.
Virtual Care Requires a Command Center
To unlock Virtual Care’s full potential, hospitals must:
Create a standalone team focused on growth, agility, and execution
Unburden legacy departments, while still integrating with hospital infrastructure
Move faster, with clear metrics, accountability, and freedom from traditional bottlenecks
This team should act like a startup inside your hospital system—agile, focused, and built to win.
Why You Need a Business Enabler—Not a Traditional Tech Vendor
70% of healthcare tech projects fail—not because of bad technology, but because hospitals partner with the wrong kind of vendor. Many "solutions providers" install devices, check boxes and then walk away. The result? Fragmented tools, disconnected workflows, zero ROI, and another failed digital transformation.
You don’t need a contractor. You need a partner who understands your business, speaks healthcare fluently, and stays to manage and continually improve.
The 1WAV Difference
While other vendors limit themselves to narrow technical objectives, the 1WAV team operates as your Business Enabler—taking complete responsibility for understanding and implementing your strategic goals.
We don't just know networks; we know your world. Our team understands clinical workflows, regulatory challenges, and the revenue pressures you face daily. We're 100% committed to healthcare systems, not splitting focus across multiple industries.
Our executive team spent years at AT&T, designing and deploying infrastructure for the largest mobile network operators in the country. We bring those relationships and expertise to transform carriers from vendors into strategic partners on your cross-functional team. Multiple carrier partnerships ensure you control a fully independent network, not just another 3-year contract.
We layer cutting-edge capabilities that most contractors can't even spell:
5G enterprise networks optimized for healthcare applications
Carrier-grade cellular with healthcare-specific redundancy
Air-gapped disaster recovery protecting patient data
Zero-trust architecture meeting HIPAA and emerging security standards
Seamless EHR integration that actually works with your existing workflows
Advanced applications support including digital scribe software and remote robotic surgery platforms
Win by Starting Smart: The 1WAV Execution Framework
Forget long, expensive mega-projects. Our model is built for speed, proof, and profitability:
Proof of Concept Labs – Launch fast, test new tools in isolated settings
Agile Delivery – Sprint-based, milestone-driven implementation
MVP First – Focus only on what’s needed to start capturing value
Cross-Functional Teams – Clear ownership, fast decisions, steering committees
Short Paybacks, High IRRs – Every step must generate cash flow, not just check boxes
This isn’t just digital transformation. It’s a business model reinvention—with margins, metrics, and measurable ROI at every phase.
The Choice Is Clear
Virtual Care is no longer a matter of “if”. It’s “who” and “how fast.”
Will your hospital lead the transformation? Or watch as others claim your patients, providers, and margins?
The market is ready.
The technology exists.
Your patients are waiting.
Are you ready to lead?
Next Step - Contact us Today: Implement your Virtual Care program in under 90 days and start capturing your share of this explosive growth market.
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1WAV Framework by Ballast Networks
Ballast Networks has developed a 5G private network platform [1WAV} that will be able to enhance and gradually replace the entire network stack in hospitals and healthcare settings. We bring healthcare providers campus-wide reliability, fast and resilient disaster recovery, and zero-trust security.
The 1WAV platform lowers legacy costs and complexity while enabling significant new revenue, taking advantage of mobile health monitoring advancements to support a high growth Virtual Care business. Ballast Networks is the leading company working with the major cellular carriers building a nationwide service.
Your committed Business Enabler
Paul Kooiker
206-218-3146 Direct Dial Number.
