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Telehealth: A viable business model in general practices Dr Bastian Seidel
Overview: in the next 15 minutes…
• Background: how I started in 2011
• The business end: financial incentives
• Has the business model for telehealth failed general practices?
• The VISOR framework
• What does the future hold?
How it started for me…
Anywhere?
Anywhere in Tasmania…
Huonville and beyond
Business (Medicare) incentive payments
• On board incentive in 2011: $6000
• after review:
•$1600 after the first consultation ($1300 from 2013/2014)
•$3200 after the 10th valid consultation ($2600 from 2013/2014)
• Telehealth service incentive (quarterly): $32-$26
• Extra Telehealth bulk billing incentive: $16-$13
• MBS item numbers: $21.60 (level A)-$134.40 (level D)
Who needs a business case?
MBS telehealth services in the last 2 ½ years- 3000 specialists signed up
- 6000 GPs signed up
- 55000 patients MBS received
services
What happened?
(Neufeld)
Has the business model failed general practices?
- Greatest advantage rests with
patients in rural and remote
locations
- Advantages include minimising
the need for travel
- Financial savings will occur
primarily to individuals
- Health services will only
secure gains where they
currently bear the cost of
patient transport
The ‘business model’ for telehealth
• There is no accepted definition of the term ‘business model’
• ‘Business model’, ‘strategy’, ‘business concept’, ‘revenue model’ and
‘economic’ model are often used interchangeably
• ‘The business model’ has been referred to as:
•Architecture
•Design
•Pattern
•Plan
•Method
•Assumption
•Statement
The VISOR framework
(Fife & Pereira)
Value
- ‘Willingness to pay’
- Value to patients & practice
- Can be variable!
Interface
The user experience:
- Ease of use
- Simplicity
- Convenience
Service platform
Structural, technical and social
constraints:
- Low compatibility
- Complexity of equipment and
interfaces
- Multiple technical standards
Organizing model
Rules & regulations:
- Standards
- Guidelines on implementation
- Medico-legal aspects
Revenue/cost
Revenue:
- MBS
- Non-MBS
Cost:
- Set-up
- Maintenance
Cost saving:
- Efficiencies
The bigger picture
(Productivity Commission 2013)
What does the future hold?
Opportunity to expand the use of
telehealth services
Overall cost to government likely
to be revenue neutral
Patients should only claim MBS
rebates if they have registered
with a GP
Telehealth is changing healthcare!
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