By Devin Partida, Editor-in-Chief, ReHack.com
LinkedIn: Devin Partida
LinkedIn: ReHack Magazine
Telehealth slowly began to take hold before the pandemic. However, once COVID-19 spread, remote health care rapidly became the norm.
While doctors’ offices have reopened, telehealth has repeatedly optimized medical care, expanding patient access to providers and reducing costs. Of course, patients aren’t the only beneficiaries of this advanced form of health services — medical practitioners and facilities have also seen reductions in operational outlay.
Economic Advantages of Telehealth
Providers using telehealth have dramatically decreased expenses by eliminating office space, staff and administrative requirements. For one thing, telehealth providers do not require exam rooms for remote patient consultations — this means facilities require fewer nurses on-site. Telehealth also eases workflows by diminishing paperwork and related labor costs.
Of course, expanded access to medical care leads to greater financial efficiencies. Research suggests just one no-show costs providers $260, but telehealth reduces those odds by 29%.
Primary care physicians see operational cost reductions through remote medical consultations. One study suggests a primary care telehealth appointment could reduce the cost of traditional appointments by $299.60, while phone visits are associated with a $78.90 reduction.
Telehealth Savings in the Real World
Health care systems nationwide have noticed the cost benefits of integrating telehealth services. These two medical establishments have demonstrated their efficiency.
Mount Sinai Health System
Mount Sinai Health System implemented telemedicine in 2015 but saw it ramp up during the pandemic. This is of little surprise, considering in 2020, the first quarter alone saw a 50% increase in telehealth appointments for checkups, follow-up visits, COVID-19 screenings and mental health services.
Mount Sinai’s Hospital at Home (HaH) program has had great success with remote patient monitoring (RPM). A 2023 study showed RPM reduces HaH care costs by 3.5%, meaning the health care system could replace in-person nurse examinations with telemedicine. Even after discharge from HaH, RPM lowers the risk of readmission and treatment costs for heart failure, pneumonia and chronic obstructive pulmonary disease.
The Clinic by Cleveland Clinic
Virtual second opinions at The Clinic by Cleveland Clinic have significant financial benefits. According to third-party insights, 67% of telehealth second opinions resulted in a new diagnosis or changes to the treatment plan. Alternatives to hospitalization and surgeries were also provided.
The ability to catch misdiagnoses during a second opinion appointment is critical to decreasing costly medical fatalities and disabilities. The analysis showed The Clinic saves an average of $100,911 for high-cost cases. Specialty savings include $28,220 for musculoskeletal problems and $8,036 for cardiovascular conditions per patient.
Maximizing Resources With Telehealth
As health care practitioners maximize savings using telehealth, they should take a page from a forensic accountant’s book to detect fraud. Applying investigative skills to identify discrepancies and misrepresentations of financial information is critical. Prioritizing transparency in telehealth financial services will improve patient care and enable greater resource allocation.
Resource allocation is critical for operational efficiency. With telemedicine, providers can easily grant supplies, personnel and establishments where they are most needed. This bolsters productivity and patient care by streamlining operations, decreasing wait times and widening access to care.
Investing in Telehealth for Operational Efficiency
Not every practice or health care organization is financially prepared to adopt telehealth services. Providers must understand the initial costs and weigh whether implementation would improve care quality, expand access, lower no-show visits and deliver reimbursements.
Telehealth setup requires a capital investment to pay for equipment and internet connectivity, as well as annual contracts and subscriptions. Providers must also budget for training and operating costs when adopting RPM. Studies recognize it can take time to see a return on investment, so examining ways to reduce initial costs is essential.
Technological infrastructure is necessary when implementing telehealth. Health care organizations must set up secure internet connections to protect patient information. Likewise, an electronic medical records system makes accessing personal details easier for everyone.
In 2023, Mount Sinai Health System moved to a hybrid cloud setup, enabling further transition to digital health care. The modern cloud technology infrastructure has improved operations, patient care, data management and secure communication — all critical to telehealth. Financial savings and enhanced disaster recovery set the stage for more personalized and productive telemedicine appointments.
Future Cost-Saving Opportunities With Telehealth
The healthcare industry has recently undergone significant changes with the widespread adoption of telehealth services. Reduced overhead expenditures have led to greater savings, more efficient resource utilization and quality patient care at a lower cost. With virtual appointments, providers can increase their bottom line and improve case outcomes.
