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Towers Watson explains how telemedicine will save companies $6B and who will benefit most

The big telemedicine story this week has been Towers Watson’s projection that telemedicine will save companies $6 billion in the next few years. It also figured into a big infographic illustrating a survey of how companies are tweaking their employer health insurance. But how did it reach that number? I emailed one of the senior […]

The big telemedicine story this week has been Towers Watson’s projection that telemedicine will save companies $6 billion in the next few years. It also figured into a big infographic illustrating a survey of how companies are tweaking their employer health insurance. But how did it reach that number? I emailed one of the senior consultants involved in the report and Dr. Jeffery Levin-Scherz, the national co-leader of its health management practice, replied with some answers.

How are employers going to save that much money?

Our research identified that about one in seven primary care office visits are for conditions which likely could be addressed through a telemedicine visit. Telemedicine visits can also reduce emergency department use, which can also lower utilization of diagnostic tests and even inpatient admissions.

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Telemedicine requires that patients have access to a telemedicine service, that they actually know about that access, and that they use the service. Employer-sponsored access to telemedicine services is increasing substantially, and we are working with our clients to be sure that they communicate the value of this offering to their beneficiaries. We expect that patient demand for these services will increase as more people have friends and families who have had good experiences with these visits.

How will the care be delivered?

Our clients are offering their employees access to both traditional telephonic telemedicine visits and advanced telemedicine visits that include videos.  Some employers are also offering access to kiosks which allow additional monitoring, including measuring vital signs like blood pressure and temperature, skin examinations with high-resolution cameras, and even lung exams with high technology microphones.

What kind of companies will be most likely to start using more telemedicine services?

Here are groups of employers who are most likely to benefit from employer-sponsored health centers:

  • Small employers: convenience of a worksite clinic in a setting too small to produce ROI
  • Employers with mobile workforces: e.g., sales force, drivers, service reps
  • Rural employers and employers with remote employees: benefit to underserved areas
  • Employers with an existing worksite clinic, but with other sites not served by a clinic: equalize the benefit offerings among employees
  • Employers with less than 1,000 employees contemplating a worksite clinic: A medical assistant or registered nurse-only staffing model can provide virtual physician visits at a fraction of the cost of maintaining an onsite physician or nurse practitioner
  • Employers with high deductible health plans: appealing to employees facing high deductibles who desire more convenient access to lower cost alternatives
  • Employers interested in providing convenient medical care, even if it increases overall medical expenditure: seeking to be an employer of choice