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Cost-minimization analysis: A follow-up study of a telemedicine program
M J McCue1, P E Mazmanian, C L Hampton
1Medical College of Virginia Campus, Virginia Commonwealth University, Richmond, Virginia 23298, USA.
Summary
Telemedicine services between Powhatan Correctional Center (PCC) and the Medical College of Virginia (MCV) saved $14 per inmate visit. This analysis highlights cost savings and improved access to care through correctional healthcare technology.
Area of Science:
- Health Services Research
- Telemedicine
- Correctional Healthcare
Background:
- The Virginia Department of Corrections (VDOC) and the Medical College of Virginia (MCV) collaborated to provide subspecialty care.
- A previous cost-benefit analysis of this telemedicine service was conducted.
Purpose of the Study:
- To present follow-up findings on the cost-benefit analysis of telemedicine subspecialty services.
- To evaluate the financial and non-financial outcomes of the telemedicine program.
Main Methods:
- A 12-month study period was used to collect data.
- Costs analyzed included telemedicine system operation, transportation, litigation avoidance, and direct medical care.
- The number of telemedicine consults and cost per visit were calculated.
Main Results:
- A total of 290 telemedicine consults were completed over 12 months.
- The cost per visit for inmates treated at MCV Campus clinics was $401.
- The cost per visit for inmates treated via telemedicine at PCC was $387, resulting in a net saving of $14 per visit.
Conclusions:
- Implementing telemedicine resulted in a cost saving of $14 per visit for the Virginia Department of Corrections.
- Non-monetary benefits, including enhanced security and increased access to care, represent additional net benefits.