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The Arizona Telemedicine Program business model.
Gail P Barker1, Elizabeth A Krupinski, Richard A McNeely
1Arizona Telemedicine Program, University of Arizona Health Sciences Center, Tucson, Arizona 85724-5106, USA. barkerg@email.arizona.edu
Journal of Telemedicine and Telecare
|December 17, 2005
Summary
The Arizona Telemedicine Program (ATP) uses a membership model to connect healthcare organizations, acting as a service broker. This model generates steady revenue, contributing significantly to the ATP
Area of Science:
- Health Services Research
- Telemedicine
- Healthcare Administration
Background:
- The Arizona Telemedicine Program (ATP) was founded in 1996 with state funding.
- It has since grown to link 55 healthcare organizations via a formal membership program.
Purpose of the Study:
- To describe the operational and financial model of the Arizona Telemedicine Program.
- To highlight the success of its membership-based service brokerage approach.
Main Methods:
- The ATP operates on an application service provider (ASP) model, functioning as a service broker.
- A flexible membership fee structure allows organizations to purchase desired services.
- Annual fees are based on services requested by each user.
Main Results:
- Membership has expanded to encompass 55 health-care organizations.
- Membership fees provide a consistent revenue stream for the ATP.
- Membership-derived revenue constituted 30% of the ATP's total income in FY 2003/04 ($2.6 million total income).
Conclusions:
- The ATP's membership model is financially sustainable and facilitates service sharing among healthcare organizations.
- The application service provider (ASP) concept effectively brokers telemedicine services.
- The program demonstrates a successful strategy for expanding telemedicine reach and generating revenue.