Finding the True ROI in Telehealth

With expansion of the aging population and an increase in chronic diseases, the question arises whether telehealth can help manage costs and outcomes. Telehealth can deliver ROI, but there are still barriers to implementing a sound program. This panel will provide insight into how your plan can implement a successful telehealth program and how it can lead to concrete outcomes.

Transcript

1. Panel Discussion: Finding the True ROI in Telehealth: Can “Virtual” Care Lead to Concrete Outcomes? Moderated by: Dr. Munish Khaneja, Chief Medical Officer, Altruista Health
2. 2 Panelists Harry Kim SVP and General Manager, Population Health American Well Stephen Shaya, MD Managing Director J&B Medical Supply
3. 3 The Changing Landscape| Next-Gen Technology 2017 Gartner, Inc.
4. 4 The Changing Landscape| What Tools/Information Do These Networks Need?
5. 5 The Changing Landscape| How Does Telehealth Help? Improved Access Bring healthcare services to patients in distant locations; Given the provider shortages throughout the world--in both rural and urban areas-- telemedicine has a unique capacity to increase service volume Cost Efficiencies Telemedicine has been shown to reduce the cost of healthcare and increase efficiency through better management of chronic diseases, shared health professional staffing, reduced travel times, and fewer or shorter hospital stays. Patient Demand Over the past 15 years, many studies have documented patient satisfaction and support for telemedical services. Such services offer patients the access to providers that might not be available otherwise. Improved Quality Studies have consistently shown that the quality of healthcare services delivered via telemedicine are as good those given in traditional in-person consultations. Taken from American Telemedicine Association (accessed 9/23/2018) http://www.americantelemed.org/main/about/about- telemedicine/telemedicine-benefits
6. Telemedicine in 2018
7. 7 What is Telemedicine? •Traditionally, we define Telemedicine as remote communication from healthcare professional to healthcare professional. This is typically performed via Tele-health video solutions and leverages the ability to triage patients and/or provide urgent care. •Telemedicine has expanded to encompass more use-cases through innovation and also from addressing needs in the market.
8. 8 As Telemedicine Adoption becomes more widespread, more and more conventional issues can be solved using technology. Consumer Model – Enables patients and doctors to communicate via video, messages, and for patients to access their medical records. This increases patient convenience for general wellness issues, and increases hospital revenue for the additional virtual visits. Second Opinion – Provides patients a streamlined web-based platform for seeking a second opinion for more serious illness. The platform requests all necessary records and patient information in order for the Second Opinion Specialist to provide the most accurate second opinion for the patient. Remote Patient Monitoring – Proactively monitoring patients suffering from chronic conditions helps to prevent serious emergencies and allows for real-time clinical interventions. This, in turn, saves the hospital more than the program typically costs by reducing readmission. Kiosk – With too many use-cases to list, Kiosk allows for expanding access to specialists utilizing a combination of video and vital-taking. This equipment may also be mobilized for Community Paramedic, Home Health, and disaster relief response, just to name a few.
9. 9 Concerns about Telemedicine Adoption Hospitals are slow to adopt because they are worried about workflow disruption. While some Telemedicine solutions are strictly off-the-shelf solutions, there are good quality Telemedicine solutions that work to customize their solution to their client’s existing workflow.
10. 10 Concerns about Telemedicine Adoption Security concerns exist for PHI transmitted on the Internet. Video, vitals, and EMR integrations are all just as secure as the hospital network, if not more so, in utilizing Telemedicine – as long as the platforms are HIPAA & HITECH compliant.
11. 11 Concerns about Telemedicine Adoption Small and large practices alike do not want to run the risk of early adoption of new technology, opting instead to wait until proven technology is available. Many hospitals are now incentivized to have Telemedicine in exchange for better rates. While some simply utilize video to check the box, others are diving head-first into the different use-cases because they save money and create better patient outcomes.
12. 12 Summary Telemedicine is a field of technology and medicine that is still in its infancy. Early adopters will undoubtedly set the trends and direction that this market will go. While there are a set number of use-cases for telemedicine to be integrated into care systems currently, eventually, it won’t be a matter of difficulty finding a use for telemedicine. It will instead be more difficult to find a use that telemedicine is unable to enhance.
13. The ROI Challenge in Telehealth
14. 14 © 2018 American Well Corporation | Confidential | The ROI Challenge: ROI = (Value – Cost) / Cost Value = outcomes (business and health) Outcomes = Quality (offering) X Quality (engagement) ecosystem collaboration consumer centric
15. 15 © 2018 American Well Corporation | Confidential | Telehealth is Exploding and Evolving Source: Fortune, Ray Dorsey/Eric Topol - http://fortune.com/2017/05/02/brainstorm-health-2017/ 2024 URGENT CARE 115M visits 10% 80% CARE ORCHESTRATION CHRONIC DISEASE MANAGEMENT DISEASE PREVENTION 920M visits 10% WELLNESS 115M visits
16. 16 © 2018 American Well Corporation | Confidential | 60M TELEHEALTH VISITS 1B+ TELEHEALTH VISITS 2017 2025 OPPORTUNITY The Role of Telehealth Moving From Service to Infrastructure Transactional service Limited use cases Fragmented Disease management & prevention Care orchestration Integrated NEW MODEL OF CARE
17. 17 © 2018 American Well Corporation | Confidential | American Well’s Footprint and Strategy PAYERS CONSUMERS INNOVATORS PROVIDERS TECHNOLOGY PLAYERS RETAIL/PHARMACY EMPLOYERS HEALTH PORTALS HEALTH SYSTEMS PROVIDER GROUPS PHARMA DEVICES & INFORMATION CONSUMER PRODUCTS HEALTH PORTALS INSURERS GOVERNMENT U.S Department of Defense
18. 18 © 2018 American Well Corporation | Confidential | American Well Population Health MVP • 1.9% A1C reduction • FDA-approved BlueStar app. + health coaching • Increase knowledge, build positive habits • Self-management between visits • Nutrition, activity, stress, sleep • Multiple RCTs published • Average 7% BMI decrease • Clinically-developed weight loss program • Coaching delivered by coaches • Participants lose 2-6 lbs./wk • Connected scale and activity tracker (opt.) • Multiple RCTs published • Improvement across 5+ met. synd. risk factors • Coach- & tech-backed curriculum • Increase knowledge, build positive habits • Nutrition, physical activity, stress, sleep • 3-year RCT with Aetna • 2-month intensive quit program • Physician-developed and -delivered • Cognitive-behavioral therapy • Relapse prevention and coping skills • OTC and Rx medication as appropriate • Referrals to specialists as needed
19. 19 © 2018 American Well Corporation | Confidential | Cost of Chronic Disease Management POPULATION SIZE: 1M COST OF CONDITION (VS HEALTHY INDIVIDUAL, MEDICAL COSTS ONLY) $358M ($1.4K/Person) $329M ($2K/Person) $900M ($9.6K/Person) $1.6B More healthcare spend than healthy individuals 38% OF POP. 16% OF POP. 9% OF POP. ( ) ( ) ( ) 380K Obese 160K Smokers 90K Diabetic = 10,000 people
20. 20 © 2018 American Well Corporation | Confidential | Bending the Cost Curve With Proven Program POPULATION SIZE: 1M • 380K Obese • $760M ($1.4K/Person) • 38% of Population TARGET POP ENROLLMENT COMPLIANCE OUTCOME YR-1 IMPACT • 160K Smokers • $320M ($2K/Person) • 16% of Population • 90K Diabetic • $900M ($9.6K/Person) • 9% of Population 170K 45% 43K 25% 11K 25% 9K 80% $11M 160K 100% 48K 30% 14K 30% 4K 30% $9M 90K 100% 24K 25% 6K 25% 4K 60% $34M $54M = 10,000 people
21. 21 © 2018 American Well Corporation | Confidential | ROI-Based Approach (e.g. State of ____ ) State of ___ EMPLOYEES: 170K • 70K Obese • $82M ($1.4K/Person) • 41% of Population • 26K Smokers • $270M ($2K/Person) • 15% of Population • 23K Diabetic • $240M ($5K/Person) • 14% of Population 163%YEAR 1 ROI YEAR-1 IMPACT Medical Costs + Productivity Gain YEAR-1 ROI $4.2M 132% $3.6M 143% $4.5M 244% = 1,700 people
22. Questions?