Health Care Technology covers healthcare software, data, telehealth and benefits platforms. MoatScope covers 38 companies here. None has a wide moat; 13 have a narrow moat and 25 none.
How the industry makes money
Most companies earn subscriptions and service fees: software for drug companies and health systems, billing and claims services, health-savings-account administration, and telehealth memberships.
Where the moats are
Switching costs appear in 12 of the 13 moat-rated companies, because health systems and drug companies build regulated workflows around their software. Network effects appear in five, where more clinicians on a platform make it more useful to each of them.
The narrow-moat group includes Veeva Systems, Doximity, HealthEquity, Hims & Hers, Hinge Health, Waystar and CorVel. Companies without a moat include Teladoc. Doximity scores 77 and Veeva 74 on MoatScope's quality scale.
What wears moats down
Health-system and pharmaceutical budgets tighten, larger software vendors bundle competing features, and telehealth faces low switching costs and regulatory change.
What to watch
- Pharmaceutical and health-system technology budgets.
- Telehealth regulation.
- Customer retention.
Moat ratings and quality scores on this page update as companies report. Price versus fair value for every company in the industry is in the screener.