Telemedicine Offers Real-Time Care on Demand

Most consumers in today’s technology-driven society have already adopted the use of online interactive applications for such things as entertainment, travel, retail, and banking services – so, why not healthcare? The use of web-based information technology in diagnosing, treating and monitoring patients – or telemedicine – is not an entirely new concept, but the availability of new technologies has made it more relevant these days. In fact, recent developments in other parts of the country are starting to push this trend into a movement that could have a significant impact on the healthcare industry and the issues that bind it.

On January 15, 2009, the Hawaii Medical Services Association (HMSA), a Blue Cross Blue Shield affiliate, spurred the telemedicine movement by partnering with online care specialist American Well to launch Online Care, a web-based service that allows patients to visit face-to-face with their doctor over the internet. As a result, patients in Hawaii can now meet with their physicians for non-emergency services without ever leaving the comfort of their home. In addition, doctors can review patient information online, discuss symptoms and prescribe medication online for less than the cost of a traditional office visit. The service is available to all Hawaii residents, and the cost for a 10 minute consultation is a simple $10 co-pay for HMSA members and a $45 payment for non-members.

While Hawaii is the first state to offer such services to its population, more states could take a similar course over the next several years. Already, two health plans in Arizona (Humana and Blue Cross Blue Shield of Arizona) are considering implementing options similar to HMSA’s Online Care model. In addition, federal funds are already supporting smaller programs in 46 other states, and Medicare is currently required to pay for some services in health professions that are experiencing personnel shortages. But even these programs are driven by the basic benefits of telemedicine: improvement of healthcare access and cost-effectiveness.

A recent report released by the California Healthcare Foundation (Anytime, Anywhere: Telehealth Alters the Medical Ecosystem) identifies several benefits to telemedicine (or telehealth) and the market factors that will affect its future growth. The report discusses the impact of telemedicine on the healthcare industry, as it can improve access for rural and underserved patients, while also reducing emergency room visits and lowering copayments for consumers. While telemedicine services may currently be hindered by factors such as low consumer awareness, internet connectivity and provider liability, continued developments in those areas over time will lead to greater acceptance of telehealth practices. Besides expanded access to online services and technologies, the report also cites a shortage of physicians and nurses as one of the driving factors of future market success.

Obviously, there are still some challenges to overcome before there is widespread adoption of telemedicine. With the continued advances in technology, increased education of consumers and providers, and greater consumer engagement in the healthcare system, adoption of online doctor visits will become more common. It is only a matter of time before consumers expect the same level of connectivity and online interaction in the healthcare system as they do in all other industries today. As providers and insurers look for ways to improve the quality of care, create better access, and reduce costs, telemedicine will continue to expand and play a bigger role in the nation’s healthcare delivery system.

For more information on this topic, please click on the following links…

Hawaii Launches Online Health Care through HMSA

Telemedicine a Cost Effective Alternative to ER Visits

Web Doctors May Be in Arizona’s Future


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Important Notice: Hill, Chesson & Woody does not engage in the practice of law, accounting, or medicine. Therefore, the contents of this communication should not be regarded as a substitute for legal, tax, or medical advice.

    February 13, 2009

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