|Articles|December 30, 2015

Does telemedicine improve quality, reduce costs?

Some providers and payers are hesitant to jump on board with telemedicine, but others say it the benefits are clear.

Telemedicine is hitting its adolescence-quickly gaining steam but leaving those around it a little unsure of just how well it will work. For patients, telemedicine offers better access to providers; for payers, it is an effective way to monitor and offer early intervention; and for providers, it is an easy way to connect with patients more often.

Still, concerns over privacy, security, reimbursement, and costs remain. 

Reach and potential

ReedMorgan Reed, executive director of ACT | The App Association, and a member of the American Medical Association’s (AMA) working group on telemedicine, says that while existing telemedicine tends to focus on being a direct replacement to face-to-face meetings between a physician and patient, the future of telemedicine will expand far beyond this and encompass asynchronous, store-and-forward technologies for remote patient monitoring.

In addition, using telemedicine doesn’t necessarily mean an all or nothing approach, says Nathaniel Lacktman, partner at Foley & Lardner and head of its telemedicine and virtual care practice.  In chronic cases, in particular, occasional face-to-face visits supplemented with remote health monitoring work well, he says.

According to findings from a survey by Foley & Lardner, the "2014 Telemedicine Survey Executive Summary," 90% of health plan leaders report that they have already begun developing or implementing a telemedicine program, although only 6% categorized their program as “mature.” In terms of the types of telemedicine being offered, 64% used remote monitoring, 54% used store-and-forward technology, and 52% used real-time interaction services.

“It’s the most powerful technology we have today to do that because it helps reduce barriers for patients accessing care, and therefore increases the likelihood that a primary care physician (PCP) will actually be able to see and treat the patient and manage the chronic condition before it spins out of control and turns into acute inpatient stays,” Lacktman says. “We’re at the tipping point now. Like any new trend it takes time to have awareness, understanding, acceptance and adoption. But we’re going to see a lot more in the coming years.”

A report by the American Telemedicine Association (ATA), "Operationalizing Telemedicine in Managed Care: Lessons from Kaiser Permanente," states that 20% to 30% of face-to-face visits could be achieved in alternative, non-face-to-face venues.

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