A Framework for Evaluating the ROI of Telehealth

Manatt thanks Sol Lee, summer analyst, for his contributions.

Healthcare providers are increasingly investing in and deploying telehealth capabilities that will extend services to patients in rural areas, deliver quality care to individuals with complex conditions and reduce costs associated with unnecessary emergency department usage, among other benefits.

Telehealth programs require institutions to make upfront investments in technology, program design and staffing. While payers are increasingly expanding coverage for telehealth services, receiving reimbursement across all payers at a level commensurate with costs continues to be a challenge. To that end, providers are eager to think beyond reimbursement and understand the potential comprehensive return on investment (ROI) of various telehealth programs.

The ROI of telehealth programs can vary dramatically based on the size, nature, clinical capacity and payment model of each organization. An academic medical center, for example, has a very different profile than an integrated healthcare delivery system. Because different types of providers have different characteristics, their ROI considerations around telehealth investments also are fundamentally different.

Since the decision to invest in telehealth is highly dependent on the institution’s objectives, as well as the estimated financial impact of the telehealth program, Manatt Health has developed a new white paper that:

  • Proposes a framework for calculating the ROI of a particular telehealth program;
  • Demonstrates how this framework can be applied through two distinct telehealth case studies; and
  • Illustrates the financial impact of specific telehealth programs.

Read the full white paper here.



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