The State of Telehealth – Mid 2014

Momentum for adoption of telehealth practices continues to grow. From what were virtually “pilot projects” a few short years ago, telehealth is currently a $240 million dollar industry today and is expected to grow more than 50% annually – making the projections for five years from now nearly $2 billion!

A recent study by Ernst and Young quantifies these findings, discusses both reasons for this growth and strategies that should be considered for the future, while also acknowledging that telehealth is growing more in some sectors of medicine than others, that adoption is not uniform across the country, and that not all Payers are willing to reimburse for telehealth yet. However, these barriers seem to be falling fast, spurred on by the increase in insured patients – and concomitant physician shortage – expected as the Affordable Care Act matures, the increasing efforts to provide consumers with a meaningful role in their own health care decision making, the improvements and innovations in technology, and the improvement in our ability to quantify the benefits of these technological interventions.

The value proposition for telehealth includes the ability for providers to deliver better, more effective healthcare at lower costs, removing barriers to access and opening up new marketplaces, reducing costly emergency room visits, hospitalizations, and readmissions, facilitating collaboration among multiple providers, and supporting the concept of “patient-centered care”.

Challenges that still (and likely always will) exist include the need to develop appropriate reimbursement methods and channels, multi-state licensure issues, as well as patient privacy and the security of medical records.

Exciting developments on the horizon which are cited in the E&Y report include Blue Cross/Blue Shields Online Care Anywhere, currently available in 30 states, “telestroke” programs that are popping up around the country which allow physicians and other healthcare experts to consult via videoconferencing with ER departments in community hospitals which may not be large enough to support a broad, highly experienced medical staff, and a $90 Virtual Care Center being assembled by Mercy Health Systems in Missouri, which will allow the system to provide high quality services throughout a four-state area.

Among the key pieces of advice offered in the report, to any entity wanting to build a sustainable telehealth infrastructure:

Know and define your marketplace

Set your strategic intent

Design a program which can be brought to market quickly, but also measured and                modified

Implement and improve

The 8 page report should be considered must reading for healthcare planners, and is available online.