Found the key to make Telemedicine profitable – Hurray

The last few years have seen several health organizations, group practices, and individual health providers using telemedicine programs with the hope to generate more revenue and make higher profits. While there is ample data available to show the cost-benefit ratios of telemedicine for patients and small health practices, there is still uncertainty over how to make this practice profitable for health organizations and larger group practices. Is it worth making an investment in telemedicine rooms, equipment, staff, doctors’ time, infrastructure, and systems?

Unfortunately, there is no magic key to making your telemedicine program profitable. The only way to make good financial returns is to design a proper ‘Business Plan’ for Telemedicine that fits your organization. You should be able to plan all the fixed and operating costs for the expected volumes and distribution of patients and decide your consultation charges accordingly. Some specialties require less cost for infrastructure and equipment, such as telepsychiatry and teledermatology, while others like telecardiology, telesurgery, and teleophthalmology may require higher investment. In most cases where the consultation charges are either fixed or can’t be increased beyond a certain number, it would be critical to increase the volume of patients to reduce the burden of your capital costs. Some examples of profitable business plans will be presented in future blogs, however, the following table lists the critical costs to include in your financial models: