Before Covid-19, an array of progressive technology was available for mass consumption that could make life a lot easier and productive but both, people and businesses were reluctant to usher the change. The pandemic transformed that reluctance to eagerness and as a result, like many other sectors, telehealth has witnessed a widespread growth and interest.
Consumer adoption of telehealth jumped from 11% in 2019 to 46% in April, 2020, finds a survey by McKinsey. The combined annual revenue of US telehealth sector was estimated to be $3 billion pre-Covid-19, with majority of the business coming from “virtual urgent care”. According to McKinsey & Company, due to the current acceleration of telehealth adoption and expansion of telehealth to other arenas, about $250 billion of the present US healthcare expenditure could potentially be virtualized.
This claim is based on an analysis that suggests:
- 20% of ER (emergency) visits could be replaced with virtual urgent care options
- 24% of healthcare visits and OPD patient volume can be dealt with virtually, and additionally another 9% can be addressed “near virtually
- About 35% of health attendant services at home could be virtualized
- 2% of outpatients could be transferred to home setting, aided by tech-enabled medicine administration
Overall the findings suggest that if these shifts take place, about $250 billion or about 20% of all healthcare spend (including commercially insured populations) could shift to near-virtual or fully virtual care. However, this shift will not be inevitable – the industry will need to act proactively, change its ways of working through step-by-step improvements and large-scale technology integration.
Urgent actions needed from healthcare stakeholders to cease this opportunity
- Chalk-out a virtual health roadmap
Devise a value-backed plan that takes a data-driven approach to prioritize interventions needed to improve results for priority populations. Also, develop strategies that enable start-to-end care journeys digitally.
- Optimize provider networks and incentivize telehealth
Redefine approaches beyond urgent pandemic response measures, towards reimbursements and covered services, include in contracting and enhance networks and existing models to include telehealth or virtual health. Offer incentives to encourage using telehealth, especially for chronic patients who belong to shift to risk-based models of payment.
- Develop fresh virtual health product designs
Consumer preferences are changing, and demand for more cost-effective plans are on the rise. To meet these requirements, fresh product designs must be built to include networks that are virtual first and have digital features like seamless “plug and play” abilities that provide users innovative digital solutions and enable them to benefit from diagnostic kits for at-home use.
- Integrate virtual health and care delivery approach
Since virtual health adoption has accelerated considerably to become mainstream, insurance companies must reassess their role and coverage offered by the current schemes. When virtual care is included alongside regular healthcare, uptake by consumers will increase. They should collaborate with healthcare players for a quick and effective integration.
- Reinforce technology and analytics foundation
For virtual healthcare to be embedded in healthcare systems permanently, the foundation of technology and analytics must be very strong. Once the framework for data sharing and data security are adequately set up, only then will virtual health reach its full potential.
Although the above mentioned pointers offer a starting point, there are a lot more that the healthcare industry needs to do in the next 12 – 18 months (till the time Covid-19 vaccination is completed or becomes widespread) to embed virtual health into the regular healthcare regime of consumers to seize the quarter-trillion-dollar opportunity.
