Filed under: Industry Standards, Telemedicine | Tags: acute care, AcuteCare Telemedicine, atlanta healthcare, Atlanta healthcare news, atlanta hospitals, atlanta telemedicine, cheaper healthcare, cleaner healthcare, cost effective healthcare, eco-friendly, energy usage, environment, environmentally friendly medicine, extend healthcare coverage, fuel costs, go green, healthcare costs, healthcare policy, hospital costs, hospitals, legislature, location, medical news, medicine, outpatient procedures, physicians, reducing emissions, rural hospitals, sustainability, telehealth, telemedicine, teleneurology, transportation
Telemedicine has leveraged technology to help hospitals overcome challenges associated with staffing and transportation extend higher quality healthcare to patients, regardless of their location, while simultaneously reducing costs. Now, we are beginning to understand that telemedicine not only helps hospital facilities run leaner; it may also help them be greener.
Hospital facilities are traditionally located in areas of higher population, often far away from patients living in rural communities. The transfer of these remote patients to hospitals for inpatient treatment demands relatively high energy consumption. With a foreseeable increase in numbers of patients requiring care in the future, these costs can be expected to rise if left unaddressed.
Within the context of changing environmental policy, increased focus must be placed on reducing emissions and energy usage in healthcare policy. Telemedicine has demonstrated positive effects, creating a more environmentally sustainable process by improving inpatient treatment in local community hospitals and improving monitoring of complex diseases in outpatient settings, avoiding unnecessary hospital admissions.
Physicians have traditionally placed a priority patient care over any environmental responsibility, but telemedicine offers opportunities to minimize environmental impact while developing a higher standard of care across the country. By combating energy consumption, telemedicine is improving not only the health of patients, but also the planet.
Filed under: Looking Backward Series | Tags: AcuteCare Telemedicine, american telemedicine association, annual meeting, atlanta healthcare, atlanta hospitals, atlanta neurology, atlanta telemedicine, business news atlanta, carving out a niche, Dr. James Kiely, healthcare startups, hospital news atlanta, medical business, medical startups, modern medicine, niche market, revenue, running a business, startups, sustainability, telemedicine, teleneurology, telestroke
This is another in a series of blogs chronicling the development of AcuteCare Telemedicine (ACT). Much of this reflection involves lessons learned at 2011’s Annual Meeting of the American Telemedicine Association (ATA). What follows is an amalgam of facts, experience and opinions culled from that fantastic symposium and honed by hindsight. Today’s blog will focus on telemedicine revenue and sustainability.
The business of medicine is a unique challenge for physicians used to focusing on clinical practice. Fee for service is now a relic in the changing healthcare landscape; the days of physicians hanging up their “shingle” and watching patients flock to their doorstep are waning. An entrepreneurial spirit is required and is certainly not taught in medical school. A telemedicine startup may be costly in many ways. Besides “sweat equity,” it demands a large time investment dedicated to learning the marketplace, self-initiated marketing & sales, and direct client interaction. For doctors used to years of medical school, long residencies and fellowships, and 24+ hours of emergency call, this may be a natural investment. However, for long term sustainability, that patience must shift to the financial burden of expanding staff. An executive director, a sales force and marketing support are required, yet may not immediately lead to increased revenue. Balancing long term sustainability with short term revenue generation is the challenge.
Before taking the leap into the realm of venture capitalism, one must take a very critical look at economic realities. Healthcare delivery is changing, and ventures that offer reduced costs and improved outcomes, such as telestroke, are poised to grow exponentially – exactly what an investor is looking for. However, accepting capital early in business development may severely limit income if profit margins are small. That is, venture capitalists will expect a return on their investment regardless of your income. In contrast, investors may provide the guidance and experience not readily garnered from a career in medicine. Ultimately, pursuit of venture capital must meet a specific goal towards sustainability that is otherwise unattainable.
Other sources of revenue are available and should be investigated. Grants or other government funding help rural or safety net patients gain access to best possible care. For example, the state of California provided a $200 million grant to create a statewide broadband network resulting in an “eHealth Community.” They used telemedicine as a means towards a bigger goal of improved access, quality, and efficiency in underserved areas. Georgia Bill 144; The Distance Learning and Telemedicine Act of 1992, was the first mandate by any state for telemedicine. It led to development of the Georgia Partnership for Telehealth, a not-for-profit web of statewide access points based on strategic partnerships with successful existing telemedicine programs. Partnering with government and not-for-profits reduces overhead and increases client base for a telemedicine startup. In turn, the startup becomes their reliable source of clinical expertise and business acumen. In this case, it is important that businesses advocate for the common goal rather than simply for business success, and be prepared to give credit to all those involved.
Many remote presence technology companies are also working diligently to improve patient access to healthcare. By externalizing the technology component, a telemedicine startup significantly reduces overhead while giving their clients increased options for technology to meet their needs and budgets. This avoids the requirement of significant venture capital at the outset, and also ensures that the technology is handled by remote presence experts, allowing telemedicine practitioners to focus on providing cutting edge healthcare service.
Sustainability is inextricably linked to a company’s financial stability, but also derives from integration with the marketplace. While the aforementioned partnerships have obvious financial incentives, they also help make one relevant in the market. That relevance is not measured strictly in size or profit, but in the reputation of the level of service.
Goods and services can be obtained through a variety of outlets, from boutiques to so-called “superstores.” Finding one’s niche in the market will result in both profitability and sustainability.