The American health system was under enormous financial pressure from COVID-19. The losses suffered by American hospitals from March 2020 to June 2020 were $202.6 billion. People started to delay primary care visits and non-emergency procedures were cancelled. The medical equipment supply chain was also disrupted, which increased the cost of treating patients.
Funding for government is scarce: The bipartisan October 2021 infrastructure bill, which was passed by both Democrats and Republicans, established healthcare funds for in home health services and wages for doctors at $150 billion. This is far less than the $400 billion that President Joe Biden once proposed. Many are left wondering what amount of money the bill will actually provide for the healthcare sector, as recent debates have not mentioned it.
Hospitals, clinics and independent practices cannot guarantee additional financial support. They must continue to search for lower-cost options to provide quality care. Strata estimates that less than 20% health systems achieve their cost reduction targets. 95% report that their costs have risen again after a year. Healthcare systems must understand how telehealth can reduce healthcare costs and maximize home-based care using telehealth technology in order to reduce costs, increase revenue and improve quality of care.
AccentCare’s 2021 study on telehealth implementation found that a hybrid care group experienced 6% less 30-day hospitalizations, and about 4% more 60-day hospitalizations than a traditional care group. It was even more remarkable that patients who received home care were equally or more satisfied than patients who received traditional care. This is significant: patients who are satisfied with their healthcare are 39% less likely than those who aren’t.
Telehealth patient satisfaction is high for a number of reasons. Hybrid healthcare is easier. Patients don’t have to worry about driving to the doctor or taking time off from work for their healthcare. This reduces the chance of missing appointments. Integrating telehealth devices such as ECG and digital stethoscopes ensures that patients receive the same quality of care online as in person.
Healthcare systems are one step closer towards adoption when they recognize the positive effects of technology on quality and healthcare costs. Hospitals must be able to use telemedicine in a cost-effective manner to deliver home-based care. Here are two concrete ways that Healthcare organizations can improve patient outcomes within lower-cost care settings.
1. Hospital-at-home programs for acute care patients
Hospital at home programs allow patients to receive hospital-level care in their own homes. These programs not only reduce complications but also lower care costs by as much as 30%. These programs are well-established in countries that have single-payer systems such as England and Canada, and the U.S. is following suit.
At the moment, 34 states have hospitals that are approved for waivers under the Acute Hospital Care and Home program. Medicare payments can be made to approved facilities for additional services at home such as asthma treatment.
Healthcare organizations are increasingly seeing the benefits of technology on quality and cost. Some of the nation’s top hospitals, such as Johns Hopkins and Mayo Clinic, offer home care. Johns Hopkins’ model was created to improve the care of elderly patients. Early trials showed that it not only saves money but also increases patient satisfaction and patient outcomes.
2. Telehealth support for chronic diseases management
Sixty percent (60%) of Americans have one or more chronic diseases. This accounts for the majority of healthcare spending. Telehealth can reduce healthcare costs and improve outcomes for the chronically ill.
A study of Medicare beneficiaries revealed that home healthcare costs $2,000 per month less than hospital care. This also resulted in lower readmissions which further reduced costs. Telehealth homecare is a great way to offset 95% of Medicare spending for patients with chronic conditions.
Hospitals can’t promise increased healthcare funds so it is important to find new ways for hospitals to reduce costs without compromising patient care. Healthcare systems can improve patient satisfaction and outcomes by increasing in-home care. This will also help to significantly reduce overall healthcare costs. Hospital-at-home programs for chronic disease management and hospital-at-home programs are good places to start when considering telehealth.
