Cost analysis of implementing a telegeriatrics ecosystem with nursing homes: panel data analysis

Area of Science:

• Gerontology
• Health Economics
• Telemedicine

Background:

• Nursing home residents often require specialized geriatric care.
• Telemedicine offers a potential solution for improving access and efficiency in geriatric care.
• The economic impact of telegeriatrics programs on healthcare systems requires thorough analysis.

Purpose of the Study:

• To analyze the economic impact of a telegeriatrics program on the care of nursing home residents.
• To evaluate cost savings from the perspective of the healthcare system provider.

Main Methods:

• Retrospective analysis of archival data from four Singaporean nursing homes (2010-2015).
• Inclusion of 859 individuals who received telemedicine consultations.
• Cost analysis based on hospital admissions, specialist outpatient clinic (SOC) visits, nurse training records, and performance indicators.

Main Results:

• A significant negative relationship was observed between teleconsultations and SOC visit costs (β1 = -83.366, p<0.01).
• Teleconsultations showed a significant negative relationship with inpatient costs (β1 = -470.971, p<0.05).
• Nurse training in telegeriatrics correlated with reduced emergency department (ED) transfers, indicating cost savings.

Conclusions:

• Remote video consultations in telegeriatrics can lead to substantial cost savings by reducing unnecessary SOC visits and hospital admissions.
• Investing in nurse training for telegeriatrics can further enhance cost-effectiveness by decreasing ED transfers.
• Telegeriatrics presents a viable model for cost-efficient geriatric care delivery in nursing homes.