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Here’s why Doctor Care Anywhere (ASX:DOC) shares are on watch

Doctor Care Anywhere Ltd (ASX: DOC) shares are on watch this morning after announcing some news. 

Doctor Care Anywhere Ltd (ASX: DOC) shares are on watch this morning after announcing some news.

What’s Doctor Care Anywhere? It’s a UK telehealth business that wants to deliver high-quality, effective and efficient care to patients, while reducing the overall cost of providing clinical services.

What happened today?

Doctor Care Anywhere announced that it was signing a new channel agreement with Allianz Partners’ international health line of business. Allianz is one of the world’s largest insurance and assistance companies.

This is the first international private medical insurance agreement in Europe after the expansion of its offering to the Republic of Ireland in October 2020.

The agreement will mean that Allianz Partners policyholders and dependents based in Europe can access Doctor Care Anywhere’s digital health services, including teleconsultation.

Doctor Care Anywhere revealed some of the key terms. The product launch is targeted to be in January 2021. It’s an evergreen agreement with no set expiry period. There’s a fixed price per consultation. Consultations will be provided by the company’s Irish Medical-Council-registered clinicians. Initial services will include the company’s virtual GP consultations.

This new agreement will sit alongside the company’s existing channel relationships with other leading global insurers and hospital groups.

An update on this channel agreement will be provided in its quarterly report in January.

Doctor Care Anywhere Founder and CEO Dr Bayju Thakar said: “We are thrilled by the opportunity to work with another world leading insurer; this is further recognition of the value that the Doctor Care Anywhere platform brings to patients, payors and providers. 

Being engaged by Allianz Partners adds to the company’s growth trajectory and supports our ability to service patient needs globally. This agreement is integral to our strategic plans for 2021 and beyond, helping us to deliver joined-up, accessible, quality health and disease care in the UK and globally.”

Summary thoughts

Doctor Care Anywhere is an interesting business and I can see how it may prove popular in the coming years. Is it worth buying yet? Perhaps, but it has gone up 56% since 8 December 2020, so it’s not as cheap as it was.

This is the type of business I’d want to see it gain traction, shown in publicly reported accounts, before jumping on board.

There are other ASX growth shares in the healthcare space that look very interesting with high margins such as Volpara Health Technologies Ltd (ASX: VHT).

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