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Related Experiment Videos

The Business Case for Tele-emergency.

A Clinton MacKinney1, Marcia M Ward1, Fred Ullrich1

  • 11 Health Management and Policy, University of Iowa , Iowa City, Iowa.

Telemedicine Journal and E-Health : the Official Journal of the American Telemedicine Association
|July 31, 2015
PubMed
Summary

Tele-emergency services can be profitable for rural hospitals. Optimizing emergency department (ED) processes and substituting physician staffing costs are key to realizing financial gains from this telehealth expansion.

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Area of Science:

  • Health Services Research
  • Telehealth
  • Emergency Medicine

Background:

  • Tele-emergency offers real-time emergency medicine consultations to remote EDs.
  • Financial analyses of tele-emergency services are scarce in existing literature.
  • This study establishes the business case for implementing or continuing tele-emergency programs.

Purpose of the Study:

  • To evaluate the financial viability of tele-emergency from a critical access hospital (CAH) perspective.
  • To analyze the potential profit and loss associated with tele-emergency services in rural settings.
  • To identify financial scenarios influencing the success of tele-emergency programs.

Main Methods:

  • Defined 10 financial analysis categories for CAH tele-emergency evaluation.
Keywords:
business administration/economicsemergency medicine/teletraumapolicytelehealth

Related Experiment Videos

  • Utilized data from Avera Health's eEmergency program via interviews and site visits.
  • Augmented Avera Health data with national statistics for comprehensive analysis.
  • Analyzed three distinct financial scenarios to determine CAH profit/loss.

    • Main Results:

    • A high revenue/low expense scenario yielded a profit of $187,614.
    • A midrange financial scenario resulted in a profit of $49,841.
    • A low revenue/high expense scenario indicated a loss of $69,588.

    Conclusions:

    • Tele-emergency can be a profitable service line for rural hospitals.
    • Adjusting ED processes to leverage tele-emergency revenue and savings is crucial.
    • Primary cost savings are achieved by substituting physician ED backup and staffing costs.