MARCH 1999 PRESS RELEASE
Latest Analysis Suggests A $4.2 Million Reimbursement Level For 1997 Telemedicine Services
Jacksonville, OR (March 24th, 1999): Using the most recently available data, Feedback Research Services (www.feed-back.com) reports that the estimated maximum reimbursement level for existing services from U.S. telemedicine programs was only $4.2 million in 1997. The methodology and data are described in more detail in the February 1999 issue of Telemedicine Today magazine.
Industry analysts and others who follow developments in the telemedicine market may note that this number seems surprisingly low. The reason is that few third-party payers are actively supporting these services, even though the annual survey conducted by the Association Of Telemedicine Service Providers (www.atsp.org) indicated that more health care was provided using telemedicine in 1997 (the most recent data available) than ever before.
Providers may be especially interested in following these trends, since physicians who engage in telemedicine-mediated consultations are not necessarily being paid through insurance or government programs. This is expected to change, now that The Balanced Budget Act of 1997 requires Medicare reimbursement (as of January 1st, 1999). At the present time, however, eligibility criteria are quite limited.
It appears that considerable inertia must be overcome within the medical community and among third-party payers, even when legislation has been passed to ensure coverage of telemedicine services. In California, for example, the Department of Health Services’ claims process was eventually clarified so that several telemedicine program administrators could apply for and receive reimbursement in the second half of 1998, but this was one year after the required date of implementation. Because telemedicine reimbursement is new and controversial, the same type of delays may also happen at the federal level.
For the immediate future, extrapolated estimates based on total expected 1998 and 1999 telemedicine services indicate that even with full payment (an idealized situation), the amounts being expended for telemedicine services provided by major U.S. programs will be under $10.0 million this year.
Feedback Research Services publishes newsletters and reports about home care, medical call centers, telehealth, telemedicine, telephone triage, and selected pharmaceutical markets. The February 1999 issue of the newsletter evaluates desktop telemedicine and videoconferencing markets, with revenue and growth rate estimates from 1997 – 2000. The March issue covers the latest trends for U.S. and world telemedicine system sales.
For more information contact us at 541.899.8088 or info@feed-back.com.
