Health care preps for telemedicine shift

As technology floods nearly every sector of the economy and the Affordable Care Act moves healthcare providers from a fee-for-service model to one that reimburses based on patient outcomes, healthcare executives are gearing up for the industry’s next monumental shift. Telemedicine.



The reality is that telemedicine is not a distant possibility. While few for-profit and nonprofit healthcare leaders would categorize their telemedicine programs as “mature” (only 6%), according to the recently released “2014 Telemedicine Survey” by Foley & Lardner, the overwhelming majority are at least in some phase of development.



Target and Kaiser Permanente have teamed up to launch in Southern California four Target Clinics staffed with licensed nurse practitioners and licensed vocational nurses, as well as physicians available by telemedicine consultations, giving local Target guests access to Kaiser Permanente’s healthcare services.



CVS Health president and CEO Larry Merlo has indicated that the company is experimenting with telemedicine within MinuteClinic and has 28 sites in Southern California and Texas.



In its survey, Foley & Lardner found that 84% of respondents think the development of telemedicine services is either very important (52%) or important (32%) to their organization.



“From dramatically increasing a specialist’s geographic footprint to enabling chronic care management outside the hospital, telemedicine can transform an industry that is ripe for disruption,” the survey stated.



Fifty percent of respondents ranked improving the quality of care as their No. 1 rationale for implementing telemedicine. Another 18% were most excited about reaching new patients.



“With its ability to multiply patient points of contact at a significantly reduced cost, telemedicine enables physicians to keep closer tabs on their patients, whether it is monitoring blood pressure from a distance or ensuring day-to-day medication adherence,” the survey stated. “... Simultaneously, telemedicine lowers the barriers to entry for patients to receive advice and support from medical professionals.”



While healthcare executives welcome the patient-centered opportunities that telemedicine affords, reimbursement is a challenge. According to the survey, 41% of respondents said they are not reimbursed at all for telemedicine services, and 21% reported receiving lower rates from managed care companies for telemedicine than for in-person care.