Unleash telemedicine's potential to reduce healthcare costs

BrownAs has been the case with numerous other health technologies that have come about in recent years, many payers and providers are asking: Is telemedicine here to stay?

The answer is yes. For healthcare providers, a strong telemedicine program can broaden access and set the groundwork for a fully integrated program that is aligned with other system-wide priorities. For payers, it can reduce healthcare costs without jeopardizing quality.

With more than 62 million Americans lacking a primary care provider, and approximately 80% of emergency room visits resulting from a lack of access, telemedicine is perfectly situated to help provide a solution.

Related: Telemedicine is poised for growth

Recent reports suggest that many urgent care and primary care visits could be conducted as a virtual consult. A 2014 report from Deloitte, for instance, predicted that 75 million out of the average 600 million general practitioner appointments would occur through electronic visits (e-visits) in the U.S. and Canada in 2014. The savings from these e-visits could be large, at a projected $5 billion for 2014, according to the report.

While some providers may fear that virtual care could cannibalize other volumes, it is imperative to consider the downstream benefits and savings. Telemedicine often saves organizations money because less complex conditions are treated virtually, freeing physicians to spend more time focusing on more complex cases, face-to-face, with patients.

Another area of opportunity for cost savings is found within the employer care space. Over 80% of employers say they could be offering telemedicine services by 2018, according to Towers Watson.

With the increase cost of even providing health insurance, employers are searching for areas to cut unnecessary cost. This involves the roll-out of population health strategies and analytics to better understand the health status of their employees.

By utilizing telemedicine, employers can create capacity for more access, without having to make any large capital investments. Many individuals still utilize their emergency department for all of their health needs, and virtual care can help to steer those patients to more appropriate care, while also bringing them in for follow-up primary care that might be needed.

 

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