Telemedicine and remote monitoring could save $197 billion

The United States economy could save $197 billion over 25 years by implementing policies that support remote monitoring and other telemedicine technologies, according to a new report.

A failure to encourage healthcare providers to take advantage of telemedicine would cut the projected savings by almost $44 billion.

The report, "Vital Signs via Broadband: Remote Health Monitoring Transmits Savings, Enhances Lives," was conducted by the Kauffman Foundation and Brookings Institute economist Robert E. Litan. "Remote monitoring can spot health problems sooner, reduce hospitalization, improve life quality and save money," Litan said at a recent "Better Health Care Together" (BHCT) forum.

Much of the savings will come from the treatment of chronic diseases, such as diabetes and congestive heart disease. Remote monitoring reduces the need for constant supervision and frequent hospitalization that often accompanies these conditions.

However, Litan warns, the U.S. must develop efficient reimbursement policies for remote care and build greater broadband infrastructure - or insurers won't be incentivized to adopt the technology. "Hospitals and doctors can't provide services unless they get paid," he told the BHCT audience. "We need insurance reimbursement policies, beginning with Medicare and Medicaid, that cover remote monitoring."

The report comes at a time when Congress is struggling to develop a health care reform bill that cuts costs in the long term. Litan estimates, under baseline conditions, an annual savings of $1.75 billion from the implementation of remote monitoring.

Remote Electronic Patient Monitoring Could Save $197 Billion Over 25 Years (Home Health News)

Vital Signs via Broadband: Remote Health Monitoring Transmits Savings, Enhances Lives (BHCT)

Remote Monitoring Technologies Could Shave Health Care Costs by $197 Billion (BHCT)