Xerox (XRX) Forays into Telemedicine with HealthSpot Stake - Analyst Blog

Xerox Corporation (XRX) announced that it has invested an undisclosed amount in HealthSpot, a Dublin-based telemedicine provider that sets up kiosks to connect patients with physicians. For Xerox, this strategic partnership is a big leap into the budding telemedicine industry.

Xerox's investment will enable HealthSpot to ramp up its operations and deploy telehealth kiosks for retail pharmacies, large employers, long-term care centers and emergency units across the U.S. over the next five years.  

The partnership will also combine HealthSpot's software platform with Xerox's business process services expertise. Xerox will also act as Healthspot's exclusive cloud computing and business process services vendor, facilitating cloud hosting, access to electronic records and claims submission.

HealthSpot's telehealth platform partners with health networks to offer patients affordable and convenient access to nationally-recognized doctors. The system allows patients to interface doctors and healthcare professionals through a videoconferencing system. The kiosks are intended to handle non-emergency health concerns and are equipped with interactive medical devices, with the average visit taking just 15 minutes.

The deal follows HealthSpot's announcement last week when it inked a deal with national drugstore chain Rite Aid Corp. (RAD), wherein it will deploy its kiosks inside select Rite Aid locations.

Xerox also plans to introduce HealthSpot to its health-care industry clientele.

Telemedicine services have been attracting a lot of attention lately. Improved broadband network coverage, mounting pressure for cost savings and patients and doctors becoming more computer-savvy are some of the drivers for the up-and-coming telehealth trend. Even emerging regulatory policy consensus favours telemedicine. However, reimbursement issues and profitability might turn out to be an enduring challenge for the practice.

Nevertheless, more and more companies are looking to take a shot at capitalizing on the trend. Technology major Google Inc. (GOOGL) recently announced that it is working on a telemedicine program, which will connect web searchers of medical information to doctors. Medical technology company Medtronic, Inc. (MDT) ventured into the telehealth industry with the $200 million purchase of remote patient monitoring firm Cardiocom last year.

As the healthcare landscape continues to evolve and become increasingly patient-centric, telehealth is expected to play a leading role in the future of the industry. Xerox's healthspot stake will likely prove to be an asset in the changing scenario and will allow the former to keep pace with dynamic healthcare industry trends.

Xerox presently sports a Zacks Rank #3 (Hold).