Business Aspects of Telemedicine

Abstract

This chapter focuses on the business aspects of telemedicine and how an organization or individual practitioner sets up a successful telemedicine program by considering and planning for the components of any health care business. Planning for financial success, achieving a return on investment, and being able to scale a telemedicine program from pilot to national presence are topics covered in this chapter. Taking into consideration the seven models of telemedicine and the ability to generate revenue, receive payment, contract for shared savings and value-based purchasing arrangements, as well as direct-to-consumer (DTC), direct-to-patient (DTP), and direct-to-employee (DTE), business models are discussed in relation to telemedicine planning and implementation. Included are financial projections for the use of remote patient monitoring, DTC break-even analysis, reimbursement in a fee-for-service world, and Medicare, Medicaid, and private payer environments. Telemedicine initiatives must conduct a thorough analysis of how to attain financial stability, value-added service to the organization, and quality care, to ensure a sustainable and scalable program.