Why is the Doctor Care Anywhere (ASX:DOC) share price getting attention today?

Australia is backing telehealth with a $106 million investment…

| More on:
A doctor in a white coat sits at her computer with finger on mouth thinking about something in her office with medical equipment in the background.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

The Doctor Care Anywhere Group PLC (ASX: DOC) share price has gained the attention of investors on Monday.

Earlier in the day, shares in the UK-based telehealth provider surged more than 9% higher to 47 cents apiece. However, upwards momentum quickly reverted back to downwards pressure. As a result, the company's share price is now down 1.1% to 42.5 cents.

Interestingly, the small-cap company has experienced an above-average amount of volume traded. At the time of writing, more than 357,000 Doctor Care Anywhere shares have exchanged hands today. This is the highest level of volume since the company endured a 9.7% fall one week ago.

So, what could be attracting heightened focus on the Doctor Care Anywhere share price today?

Telehealth is here to stay

Investors seem to be paying extra attention to telehealth companies such as Doctor Care Anywhere today. This follows a media release from the Australian Government Department of Health detailing a $308.6 million investment in the country's primary care health system.

According to the release, telehealth will become a permanent feature of primary health care. As such, $106 million of the $308.6 million in government spending will go towards telehealth for Australian patients. This investment will be spread across four years.

The government aims to ensure greater flexibility for patients and doctors by allowing medical personnel to continue to leverage online and phone consultations.

Furthermore, the release stated that since early March 2020, more than 86.3 million COVID-19 Medicare Benefits Schedule (MBS) services have been delivered to 16.1 million patients.

The government's backing of telehealth services along with this announcement has likely has put the Doctor Care Anywhere share price in focus today. Though, investors don't seem to be overly optimistic with the news as its shares come under pressure in afternoon trade.

Doctor Care Anywhere share price recap

While telehealth might have gained popularity in the last year due to ongoing conditions, the Doctor Care Anywhere share price hasn't benefitted from it.

In the last year, shares in the telehealth platform provider have sunk 65% in value. Meanwhile, the broader health care sector has gained 5.6% in value. The poor performance is hard to decipher considering the company reported a record quarter in October for the number of patients who had their first consultation using the platform.

Based on the current Doctor Care Anywhere share price, the company holds a market capitalisation of ~$78 million.

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended Doctor Care Anywhere Group PLC. The Motley Fool Australia has recommended Doctor Care Anywhere Group PLC. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Healthcare Shares

Overjoyed man celebrating success with yes gesture after getting some good news on mobile.
Healthcare Shares

Which small cap ASX share is jumping 10% on strong results

Investors have been bidding this stock higher today. But why?

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

Why Macquarie forecasts 30-50% upside for these ASX All Ords healthcare stocks

Macquarie updated its target price on these three ASX All Ords healthcare stocks.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

Guess which ASX 200 stock is jumping 10% on big news

This stock is catching the eye with a strong gain on Thursday. But why?

Read more »

a young woman holds her hand to her ear and leans sideways as if to listen to something that's surprising her as her eyes and her mouth are wide open.
Healthcare Shares

Down 15% since January, are Cochlear shares now a buy?

Let's see what analysts are saying about this blue chip.

Read more »

Green arrow with green stock prices symbolising a rising share price.
Healthcare Shares

Guess which popular ASX 200 stock is up nearly 60% in less than 2 months?

Investors who bought this ASX 200 stock in the recent dip have been strongly rewarded.

Read more »

A senior pharmacist talks to a customer at the counter in a shop.
Healthcare Shares

Are Sigma Healthcare shares a good buy now after the merger with Chemist Warehouse?

Sigma Healthcare shares have soared 154% in 12 months. Can this stellar run continue?

Read more »

Doctor doing a telemedicine using laptop at a medical clinic
Healthcare Shares

Up 34% since April, ASX 300 healthcare stock lifts off again today on new milestone

The ASX 300 healthcare stock has been on a tear since hitting one-year lows in April.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

Should I buy the dip on CSL shares?

A leading fund manager gives his verdict on the growth prospects for CSL shares.

Read more »