JUNE 1998 PRESS RELEASE
World Diabetes Self-Care Market To Reach $7.6 Billion in 1998
Jacksonville, OR (June 23, 1998): Two reports from Feedback Research Services analyze the numbers and make the case that large expenditures to pay for telemedicine services in the United States are unrealistic this year. California Telemedicine: A Reimbursement Dilemma addresses the effect of economic, managed care, and political factors on claims submissions to date. Clinical Telemedicine Payment Models evaluates current U.S. service levels and presents some surprising conclusions, especially in comparison with Health Care Financing Administration (HCFA; Rockville, MD) reimbursement estimates for the years 1999 through 2002.
Despite expectations on the part of industry leaders and state legislators, California telemedicine service providers are not yet being reimbursed to any significant degree. On a national level, claim submission rates are also low because few providers in telemedicine demonstration projects are able to meet preliminary HCFA reimbursement criteria. Historical data suggest there will be a relatively small number of payments made through 1998, even as more extensive services become available from health care provider organizations. Annual surveys continue to indicate how successful telemedicine can be. Rural communities gain improved access to specialists’ services, while tertiary care centers experience higher referrals of rural patients who need more comprehensive medical attention.
One factor could influence growth of telemedicine services next year. In May 1998, new funding for telecommunications "parity" became available through the Universal Service program. Eligible rural telemedicine service providers will be able to offset high monthly operational costs associated with telephone line charges. Theoretically, with lower expenditures for transmission, there may be increases in the number of telemedicine services provided, some of which may qualify for reimbursement. If so, expanded service levels could coincide with availability of limited Medicare reimbursement for telemedicine. Payments are scheduled to begin on January 1st, 1999 for beneficiaries who live in Health Professional Shortage Areas (HPSAs). HCFA estimates suggest that up to $19.0 million in telemedicine service reimbursements may be paid out for this population in 1999
Feedback Research Services publishes reports that analyze emergent health care markets. For information about current titles, visit: Market Reports
