When an unexplained rash appeared on Liv Morgan’s face and torso, her immediate reaction was to go to the neighborhood urgent care clinic to get a diagnosis and treatment.
But the Massachusetts resident says she now wishes she’d booked a telehealth consultation first.
“I was given an incorrect diagnosis,” Morgan recalled. “So I reached out to a dermatologist and they evaluated me virtually the following day.”
The virtual visit went smoothly for Morgan and spared her the expense, travel and time of an in-person appointment.
“I didn’t need a referral and I felt more at ease and confident that I was receiving top care,” she said. “The outcome of my telehealth appointment far surpassed the in-person visit.”
Accounts like Morgan’s are increasingly familiar as virtual care has surged in popularity over recent years, a trend accelerated by the COVID-19 outbreak. The Global Telehealth Market was worth $21.7 billion last year and is expected to climb to $71.44 billion by 2027, according to Verified Market Research.
Telemedicine providers aren’t just focused on delivering convenient care; they’re also trying to cut costs for patients.
How Telehealth Can Save You Time and Money
Morgan discovered that telehealth cut her gas expenses, wait time and the need to request time off work — a conclusion echoed by Ann Mond Johnson, CEO of the American Telemedicine Association (ATA).
“Virtual care and telehealth services can boost efficiency and therefore lower healthcare expenses,” Johnson said.
One clear benefit is convenience: when patients can see clinicians from home, they don’t have to miss work, pay for extra childcare or eldercare, or spend money traveling to a clinic or hospital.
Johnson explained there are two primary types of telehealth encounters: synchronous visits conducted live via video or phone, and asynchronous, text-based services where patients submit information that clinicians review later.
“Both approaches can be valuable depending on the medical issue,” she said. “It’s also crucial to acknowledge that some situations require a hands-on physical exam or diagnostic testing that must occur in a clinical environment, making virtual care inappropriate.”
She added that telehealth can indirectly reduce costs by streamlining care delivery — from gathering patient data to cutting down time spent in waiting rooms.
For people without traditional insurance or those looking for lower-cost options, telehealth alternatives like telemedicine without insurance can make care more accessible and budget-friendly.
Telehealth Helps Medical Providers Save Too
Telehealth’s cost benefits extend to clinicians and health systems, which can in turn lower expenses for patients.
A 2008 evaluation of a national telehealth program conducted by the Veterans Health Administration reported a 25% reduction in bed days of care and a 19% drop in hospital admissions, easing pressure on the system and cutting costs for everyone involved.
In total, consumer savings from telehealth have ranged from roughly $100 to as much as $1,500, according to calculations by Philadelphia-based Jefferson Health, which estimated savings largely by diverting patients from unnecessary emergency room visits through virtual care.
Nevertheless, Johnson noted uncertainty about whether broad access to telehealth will persist post-pandemic. Temporary regulatory flexibilities implemented by Congress allowed expanded telehealth access, and many insurers, including Medicare, waived certain fees for virtual visits. Those relaxed rules could be rolled back if not codified into law.
Still, there are indications that both patients and providers value keeping telehealth options even after the pandemic subsides.
A study released in April 2020 by the John A. Hartford Foundation found that 21% of older adults had a medical appointment by phone or video that otherwise would have been in person. Of those who used telehealth, nearly 60% said the experience was about the same as or better than an in-person visit.
Jamie Nolan is a contributor to Savinly.
