What is telehealth, and what is it used for?
Telehealth refers to the use of communication technologies to deliver healthcare services. Demand for telehealth has risen exponentially in recent years, particularly since the beginning of the COVID-19 pandemic. A report by the CDC stated that telehealth visits increased by 154% during the last week of March 2020. As the telehealth industry has expanded, so has the variety of professional modalities available, including general practitioners, psychologists, psychiatrists, nurses, counselors, occupational therapists, and chiropractors. Telehealth removes specific barriers that have previously been faced by patients, including those who live in remote areas, have mobility issues, or are elderly. Recent studies have begun to suggest that telehealth can also reduce costs for both patients and practitioners. In response to the increase in the number of businesses looking to move to a telehealth system, we have developed a basic guideline that will indicate to you just how much this process will cost.
How much does it cost to start telemedicine?
Starting telemedicine, just like starting any business, will incur certain costs. Fortunately, the increase in the telehealth industry has led to the development of a broader range of telemedicine software and hardware, giving you more flexibility in your budget. We will detail the necessary and unnecessary (but helpful) fees that are included in most telemedicine businesses so that you can make the right decision for your practice.
Telemedicine startup costs
Certain factors will inevitably influence how much you spend on your telemedicine business, including:
- The number of staff at your practice.
- The number of patients that you usually see.
- The scope of the services that you are providing.
- The degree to which your existing software needs to be developed.
- Requirement of hardware, including computers, microphones, and cameras.
Setting up telemedicine can cost you anywhere between $10,000 to $300,000, depending on the type of business you want and the complexity of the software you choose.
Telehealth cost structure
Selecting the right telehealth features that are custom-tailored to suit your practice’s needs can seem overwhelming. To help you make the right choices for your business, we have broken down the various costs of making a move to telemedicine.
Telemedicine app development cost
App development is a crucial aspect of beginning a telehealth business that grants patients access to the practice’s software to use it as a service and connect with practitioners. The cost of developing a telemedicine app will once again depend on the features you require. Generally, a telemedicine app should be user-friendly and include video conferencing, chat boxes, security measures, and appointment scheduling. The more complex and feature-rich the app is, the more expensive it will be, with the price ranging from anywhere between $15,000 to $50,000.
Telemedicine platform cost
In recent years, various telemedicine platforms have been developed with varying capabilities. The size and scope of your business will be a significant determining factor for what platform best suits your business needs. Most platforms include integrated software, data analytics, and encryption, with various smaller-scale features. The essential requirement of a telemedicine platform is that it is HIPAA-compliant. Depending on the complexity of the features included in the platform, the price of healthcare business software ranges from $50,000 to $300,000.
Telehealth business plan
Creating a business plan is a necessary step to ensuring success. Fundamentally, a business plan should set telehealth goals, review the telehealth situation, determine why the goals are attainable, and establish a strategy for reaching those goals. A detailed business plan will also give you a realistic budget and reveal what avenues you should be spending your money on. Your business plan should be custom-tailored to your business goals and indicate when you expect your costs and revenue to break even.
Cost of specialist medical devices
You’ll also need to consider the cost of using specialist medical devices within your practice, as these are often required (depending on your discipline), and can elevate the quality of your services, as well as increase health outcomes. The good thing about medical devices in telehealth is that they are highly scalable and can accommodate the needs and size of your business. You never have to buy more than what is necessary, as you can just add on additional devices as you begin to expand.
Depending on the device, they can cost anywhere from $50 to $5,000, with $500 being the typical average. This includes devices such as ECGs, examination cameras, and digital stethoscopes, as well as ENT scopes. There’s a variety of instruments out there that come at quite differing costs, so it’s important to factor this into your budget when making the move to telehealth.
Costs of designing and mobility
It’s important that your telehealth software is not only aesthetically pleasing but also able to meet your needs - which may mean offering customizable features. Good telehealth platforms are highly modular and have the ability to configure and rearrange your management systems, records, and client information to optimize efficiency and streamline your workflow. Typically, the top-of-the-line telehealth systems and platforms will also integrate multiple features, such as appointments, video, and messaging consulting features, amongst others. Regardless, the ability to design and customize healthcare in the way you want to should always be an absolute priority.
Costs for this type of system can range immensely. Many telehealth options range from free versions to $30 per month, while high-end software that encompasses primary medical care devices and mobile functions for large businesses can fluctuate. These can be anywhere from $10,000 to $30,000, however, regardless of your choice, you should always invest in research first.
Costs of internet and broadband connections
Although it goes without saying, sometimes practitioners do need to be reminded that you require a high-speed internet or broadband connection in order to connect with clients. Because telehealth is fully virtual, it does require a strong internet infrastructure to be able to support health functions. Depending on the size of your clinic, your location, and how many clients you see, you may also need to consider the reliability of your bandwidth in addition to its size.
Dealing with laggy videos and delayed audio is no fun, and having a secure internet connection is a surefire way to avoid this, and ensure speedy downloads and uploads. Many businesses will offer fiber options, which are great for handling all your health operations, as well as business-grade categories. These are curated specifically for working with real-time information and can help you manage client information without fear of security breaches and slow connections.
Costs of training and support
Finally, there is also the cost of training and support to consider. Healthcare can be a complicated industry and requires constant upkeep of health standards and regulations when it comes to integrating technology. As a result, you need to have room within your budget to be able to accommodate any additional training needed. All healthcare practitioners within your practice must be qualified in order to aid patients, and so it’s of utmost importance that you prioritize this and take such costs into account.
Depending on the type of training needed, costs can be anywhere from $100 to $2,000. Some clinicians may not need technical training, and if you have IT staff, they are likely already knowledgeable in this area. Otherwise, you may need to spend higher amounts if you have more complex software that necessitates in-person training. There are virtual options available, which are often associated with lower costs, however, these are not always accessible.
How much does telehealth equipment cost?
Obtaining equipment explicitly designed for telehealth will increase the likelihood of your business being successful. There are two significant components of telehealth equipment. The first relates to updated technology hardware required by staff, including computers, cameras, microphones, and mobile devices. Higher quality hardware will lead to a more efficient and sophisticated system. Depending on how many upgrades need to be made, this equipment can cost $100 to $30,000.
Telemedicine kiosk cost
Telemedicine kiosks are designed to facilitate remote healthcare consultations between patients and practitioners. People can go to their nearest booth and be virtually connected to a certified practitioner without an appointment. Certain practices will require their kiosks to contain medical devices to diagnose and treat patients properly, including EKG, ultrasound, and blood pressure monitors. Practitioners can use these tools to treat their patients remotely as effectively as if they were in person. The various devices included within a telemedicine kiosk can cost between $15,000 to $60,000.
Doing a market research of your target market
An additional cost to implementing telehealth systems is to consider whether it is beneficial for your target market. There’s no point in implementing a service that won’t add value to your practice, so make sure to spend some time evaluating the market conditions that you’re entering.
For instance, it would be beneficial to consider whether you will have enough telehealth users within your practice. You may discover that you’re the only one who prefers this avenue or is willing to access it. While this is fine if you’re the sole member of a private practice, this can be troubling for practices with an extensive number of staff. You also need to consider your patients, and whether they are open to the idea of incorporating telehealth within their experience, as some may also be less receptive, and could take their service elsewhere.
Choosing to incorporate telehealth can be a big decision, and you need to make sure that you have full confidence in its reception, and that it will actually fit the needs of your business.
The cost of procuring a license
If you decide to go with a third-party telehealth provider, you need to consider the fact that you will likely have to obtain a license in order to use their services. Most of the time, you only need to purchase a once-off, however, sometimes there is a monthly fee involved. These can be anywhere from an additional $5 to $50 per month, which can be excessive! Be sure to check whether this is inclusive of standard software subscription fees, as if not included, this can increase costs significantly.
You can also evaluate whether the service that you choose to go with encompasses more comprehensive services such as appointment booking and video consultations, as some third-party platforms prefer to focus on specific elements. When procuring a license, you want to make sure you are getting your bang for your buck, so consider different pricing tiers that are tied to your license.
Providing legal advice
When it comes to healthcare, compliance should be your number one priority. Adhering to HIPAA regulations and standards can protect the longevity of your practice, and minimize risks of data and security breaches. While these can be straightforward, the industry can turn on its head at times, and you may find yourself having to seek legal advice. As a result, it’s always a safe bet to allocate a small portion of your budget for any legal support you may need.
Make sure to also set aside time to audit your security processes, and ensure that you’re not only following HIPAA standards but also local laws within your area. Different countries and regions approach healthcare differently, so make sure you’re up to speed with legalities and the ever-changing landscape that they operate within. Failing to maintain legal compliance can result in not only a damaged reputation but hefty fines from anywhere between $50 to $1.5million.
Taking care of privacy and security
As touched on, you will also need to consider the costs of security maintenance to ensure HIPAA compliance, and that all your client information is safely managed. Data security is highly significant when it comes to transmitting, storing, and creating electronic health records, as well as general personal health information. This may mean seeking external cybersecurity professionals to assess the state of your telehealth, or this may equate to incorporating stricter security practices.
It is crucial for both Windows and Mac users to install reliable antivirus software or VPN to enhance their system's security and defend against potential cyber threats. This includes encryption, which works to encode all your health data so only authorized users have access, in addition to using firewall or antivirus software programs. There are a variety of applications available, designed with business interests in mind, so if you don’t want to worry about having to keep up with security standards yourself; they make for an easy (and cheap) option! Most platforms should state whether they are HIPAA compliant, so finding one that meets all your needs shouldn’t prove too difficult.
Does telehealth reduce costs?
Although telehealth software and hardware are expensive, introducing a telehealth system will lead to a reduction in certain costs. Telehealth appointments, including consultations using kiosks, cost the patient significantly less than an in-person appointment, and they and the practitioners will also have reduced travel costs. Telehealth can further reduce the number of hospital readmissions, increase productivity in the workplace, and grant people living in remote areas access to specialized practitioners.
Automation also means that you can cut out expensive overhead costs, which also pertain to tedious administrative expenses. You don’t have to worry about manually scheduling appointments, creating new clinical documents each time, or spending money on the physical upkeep of your office. Telehealth services eliminate most of these costs and allow you to increase your cash flows through automated storage, composition, and resource systems that manage client information all from one place. Payment systems are also easiest to use and can reduce outstanding payments from patients, which is always a win. With multiple card payment methods, you can cater to a variety of patients, no matter their preferred option.
When analyzing the cost-benefit ratio for your telehealth practice, it is crucial to identify benefits other than reduced costs. The benefits of telehealth are widespread, including increased accessibility, flexibility, productivity, and efficiency. These benefits impact both patients and practitioners and indicate how telehealth is contributing to a more outstanding quality of healthcare. While costs can add up, depending on the software service you choose, or the practices you implement, you save money and add business value elsewhere. Telehealth doesn’t have to be expensive, and its benefits concerning convenience, optimization, productivity, efficiency, and increased access, are worth the consideration to make the switch.
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