The Economic Impact of Telehealth Adoption in Healthcare Systems

Telehealth is revolutionizing healthcare and redefining patient care, which alters the Healthcare  landscape every day.  The adoption of telehealth has important economic and business implications for the evolution of healthcare structures. One of the biggest innovations to survive the pandemic and become a part of everyday life is telehealth.

Throughout the COVID-19 epidemic, the delivery of healthcare might be completely changed by the quick development of telehealth technology.

This blog will explore a wide range of the economic implications of telehealth adoption in the healthcare system, examining how it affects healthcare costs, rise in adoption, efficiency, and overall economic sustainability.

Impact of Telehealth Rise in Adoption

Does telemedicine mean "healing at a distance?" According to the World Health Organization, it is the application of information and communication technology (ICT) to enhance patient outcomes by expanding access to healthcare and medical information beyond any regional restriction.

The need for this has renewed interest in telehealth since it can offer more than just a practical and affordable means of communication. It also enables improved remote cooperation,  improved patient and provider experiences and efficiency.

Even if the necessary technology for telehealth was available in the past, many organizations and providers were discouraged from considering it due to the problem of funding. States have also been catching up with their telemedicine-supporting policies. At the moment, around 20 states mandate that commercial payers cover telemedicine visits, while about 40 states let Medicaid cover such costs.

Adoption for sustainable company

To support telehealth as a sustainable company, creative new business models are developing as the shift from a pay-for-service to a value-based approach. Telehealth has gained increased attention due to several factors, such as wellness efforts, corporate clinic models, cost-avoidance measures, and fixed fee-based consultations.

Utilizing software-based video solutions has increased reach beyond corporate walls and from any location, enabling cross-border provider cooperation. The adoption of consumer-focused, wirelessly linked, more compact, and less expensive gadgets has improved the user experience and led to a rise in the use of telehealth.

Due to the "Internet of Things," doctors may now link their devices to monitor patients' vital signs and other health-related activities and continue to treat their diseases by using data from sensors.  Thus, the telehealth industry contributes to market growth and creates job opportunities in technology, healthcare, and related fields.

Telehealth is a Healthcare cost-saving

The group of people being served and the kind of telehealth services offered may have an impact on how much money is saved. 

Reduced Cost

Telehealth is particularly advantageous for people who live in remote regions because patients no longer need to go to hospitals. This can lower the requirement for time off work and save patients money on transportation expenses.

Patients can save money on gas, parking, and public transit costs by receiving healthcare services at the convenience of their own homes. In general, individuals who would normally need to travel great distances to obtain primary care may find it more cheap and accessible because of telehealth.

Low-cost visit

At home, the patient feels more at ease and is willing to talk. For psychologists and speech therapists, that's a big benefit. This also applies to having greater influence over the appointment and throughout the scheduling phase. It minimizes the number of no-shows for outpatient care. Finding a reason to miss a telemedicine appointment is challenging by lowering anxiety levels in patients as a result of reduced follow-up appointment wait times.

Remote Patient Monitoring

By allowing patients to receive continuous treatment through remote patient monitoring, telehealth can aid in the reduction of hospitalizations. Patients with chronic diseases, who might require regular, periodic visits with medical professionals, might benefit most from this. 

Remote consultations won't be a suitable replacement for in-person consultations for many people, as many health conditions still require a medical professional's in-person to provide a high standard of treatment.

Teleconsultations carried out in the context of an established doctor-patient relationship may also be more effective.

Increase Efficiency

Telehealth can let clinicians see more patients in less time, which can help cut expenses, as the COVID-19 pandemic has shown. By allowing clinicians to use PMS to electronically record and preserve patient information, it can help reduce administrative responsibilities.

Centralizing health around GPs is another development in digital health services. How does that take place? The majority of virtual consultations with specific experts occur in a general practitioner's office. They can improve their patients' health results by using the knowledge they learned from a doctor in the future during their brief appointments.

Role in Teledentistry

Healthcare professionals in a variety of specializations now have more alternatives thanks to telehealth, not only primary care providers. Dental care is one medical specialty that has started to enter the telehealth realm, giving rise to a new subcategory known as teledentistry.

In fact, as consumers get more used to telemedicine, it will become a crucial distinction in the competition between providers. The degree to which telehealth services have been adopted makes it even easier for patients to take advantage of this trend. While some services provide basic primary healthcare, others—such as those that offer telemedicine for dermatology and sexual health—may use it to specialize in certain areas.

The Economic Challenges of Implementing Telehealth

Enthusiasm

We fall prey to our own sensationalism. We frequently discuss research and the amazing things that telemedicine can accomplish; nevertheless, several studies indicate that certain telemedicine applications are either ineffective or too expensive. We need to be candid about what works and what doesn't in order to advance telemedicine.

 Use of Technology

The long-term focus of telemedicine has been technology. However, rather than being only focused on the novelty of the newest piece of technology, telemedicine is actually about the services: where they may be offered and how they improve people's lives. Furthermore, integrating several technologies might result in massive data volumes that are difficult to manage or meaningful.

Regulatory Issue

The regulatory environment in which telehealth works is becoming more complicated day by day. Healthcare providers may face difficulties due to variations in state and federal legislation, licensing requirements, and reimbursement schemes. A more widespread adoption of telehealth might be increased by standardizing and streamlining rules.

Role of Health care providers

Because it fosters competition, health care providers may occasionally resist telemedicine innovation. Providers may oppose licensing barrier solutions if they do not want to compete with the telemedicine network of another state. The emergence of national networks has increased this opposition even further.

Cost Reduction Proof

While some telemedicine applications have made significant advances, others need comprehensive research or a review of previous studies in order to be valued. For instance, several major payers are prepared to use telemedicine, but more proof of cost reductions is required.

Not Enough Knowledge

Many of the limitations originate from concerns that telemedicine would either enable healthcare providers to take advantage of the healthcare system or result in overuse and increased expenses. Many technology companies are entering the telemedicine space because they perceive significant financial prospects, despite their lack of knowledge about the healthcare industry. Because of this, various technologies are being developed by individuals who are drawn to the healthcare industry's potential market but do not fully see how useful telemedicine might be.

Efficiency and Productivity gains in Telehealth Adoption

Ease of workflow

Telehealth platforms, which often integrate with electronic health records, have become more widely used as a result of the COVID-19 outbreak. It helps to reduce the burden on healthcare staff and increase their workflow ability, allowing them to focus more on patient care.

Time-Conserving Opportunities for Patients and Healthcare Providers

Telehealth has received very excellent feedback from both patients and providers. In addition to helping physicians achieve their pandemic-related goals, technology is also facilitating patient and provider interactions at never-before-seen levels of ease. On the other hand, patients' expectations are also rising as telemedicine acceptance and utilization expand.

The virtual consultations conserve time for patients and healthcare providers. Telehealth enables patients to avoid spending time traveling to and from appointments every week. It is also beneficial for providers as they can see more patients in a given time frame, enhancing overall productivity.

Skip Traditional Methods.

Telehealth facilitates better care coordination between different healthcare providers. For example, new physicians can easily consult with specialists and share patient information without delays. It develops comprehensive care plans by means of telehealth as compared to traditional methods.

Real-World Example

Veterans Health Administration

The Veterans Health Administration, or VHA, is the biggest integrated health care system in the United States. It serves about 9 million registered veterans annually. The VHA has been a pioneer in telehealth adoption, using it to provide care, save costs, improve access to care, and improve health outcomes for veterans.

Kaiser Permanente

Kaiser Permanente in the U.S. has been offering almost 75 years of top-notch medical care and insurance. It created a new paradigm for health care and extensively utilized telehealth to enhance patient care. Here everything is intended to function together, resulting in significant cost reductions and reducing hospital admissions to support the success of coverage and treatment together.

Other Developed Countries

Many countries, like Australia and Canada, with vast rural areas, have broadly implemented telehealth programs to address better healthcare benefits. These programs have optimized resources in telehealth by reducing travel costs for patients, in-person visits, and hospital admissions.

The Future Economic Impact of Telehealth as Technology Advances 

Today, a patient may quickly and affordably access an infinite amount of medical information with a few clicks. These innovations in healthcare will surely inspire worldwide medical communities to investigate the potential of telemedicine and tackle emerging global health emergencies. 

The coronavirus disease crisis and other recent external causes have reduced face-to-face interactions through telehealth. Telemedicine was required to close this gap. Implementing patient safety into telemedicine procedures is crucial.

Sometimes, when emergency medical assistance could be required, health providers and  operators must know the patient's precise position during the visit. When a patient participates in a telemedicine visit while driving, medical professionals should be aware of this. The location, make, and model of the parked automobile can be helpful in emergency scenarios. During these encounters, health care providers feel more secure and confident when safety information is easily accessible.

Economic Impact of Case study on Telehealth 

Three general trends were underway in the evolution of telehealth prior to the start of the COVID-19 pandemic in March 2020:

First, a change in application from initiatives to increase access to healthcare that encouraged early use to the use of telehealth to control costs;

Second, a shift in application from the context of acute care to the management of chronic conditions; and

Third, a shift in the site of care from hospitals to patients' homes and mobile devices. The pandemic-related physical distancing measures and the subsequent exponential growth in mobile health apps have significantly boosted the development and uptake of telehealth.  

Remotely operated surgical robots and medical websites are examples of telehealth. Store-and-forward technology, health, interactive telemedicine, and telemonitoring are some of the technological groups under which telehealth may be divided.

Role of Telehealth in USA during COVID19

As it is now understood, telehealth has many advantages, but it also presents certain issues. In reaction to the COVID-19 epidemic and in subsequent years, telehealth use has become increasingly prevalent, raising worries about both the technology itself and its rapid expansion in availability. One major problem is the previously indicated change in emphasis from using telehealth to provide access to healthcare to using it to reduce health care costs—at least in the United States before the COVID-19 outbreak.

Furthermore, even with the significant growth in telehealth, most of the vulnerable people still lack access to high-quality medical treatment. Individually, telehealth brings concerns about real and intangible losses associated with health providers from the care connection. in addition to privacy issues arising from the site of treatment and the transmission, storage, and exchange of data. 

Conclusion 

Lastly, telehealth is a perfect means of communication and information sharing about the patient's status for all caregivers participating in the care process. Nothing is lost in translation when a caregiver can speak with other caregivers directly.

Patients sometimes neglect to submit crucial information to clinicians on their own, and these omissions frequently result in repeat testing that adds to unnecessary expense. Better patient care may be ensured by providing clinicians with a common communication channel through telehealth.