Why every psychiatric

hospital should have a

telepsychiatry program

Why setup a telepsychiatry

program?

Generate new revenue streams,

reap reimbursement bonuses

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Expand hospital catchment area

and increase inpatient utilization

Improve access, patient satisfaction

and hospital branding

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3

Telepsychiatry is reimbursable by

Medicare, Medicaid and private payers

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Source: National Conference of State Legislatures

Medicaid reimburses $300-$500 an

hour for telepsychiatry in top 10 states

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Rank State Reimbursement bonus

per session

Reimbursement/hour*

1 Alaska - $492.49

2 North Dakota $27.43 $481.97

3 Delaware $23.76 $356.36

4 Wyoming $20.00 $349.97

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*Calculation assumes 3 sessions per hour on average, with 1 of 5 patients being a new patient

4 Wyoming $20.00 $349.97

5 Washington $20.00 $337.54

6 Oklahoma $23.35 $322.85

7 New Mexico $22.47 $322.63

8 Oregon $20.72 $305.90

9 Colorado $21.30 $293.52

10 Idaho $20.00 $292.78

Telepsychiatry expands hospital

catchment area, increases admissions

2

FQHCSNF

PCP

Rural

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FQHC – Federally Qualified Health Center, SNF – Skilled Nursing Facility, PCP – Primary Care Physician,

CAH – Critical Access Hospital

Military bases

CAH

Correctional

facilities

clinics

Telepsychiatry improves patient

access, satisfaction and hospital branding

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6

Why some hospitals are still

hesitant and why you shouldn’t be

Reimbursement is too low or non-

existent, ROI is unproven

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Current technology is expensive and

burdensome

Telemedicine is not comparable to

in-person consultations

Medicare/Medicaid reimburse 25%

more for telepsychiatry

25%*Medicare/Medicaid

reimbursement bonus

in rural areas

No reimbursement

bonus for in-person

consultations

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Note: *Figure varies by state

ROI magnified by increased

high-margin inpatient utilization

100 6-101Every

Telepsychiatry

consultations

Inpatient

admissions

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Note: 1. Based on 1DocWay data, varies depending on type of originating site; 2. Assumes $800 revenue

per patient per day, 6 days average stay; 3. Assumes 70% fixed cost for hospitals

$20-$34K3

Additional

inpatient

EBITDA

$29-$48K2

Additional

inpatient

revenue

Telepsychiatry technology is now

inexpensive and easy to use…

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Just need a computer, webcam and a HIPAA

compliant web platform with video chat capability

…and adds efficiency by integrating

scheduling, patient notes, and workflows

Scheduling EHR

Patient notes

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LabsE-prescribe

Telepsychiatry is just as safe and

effective as in-person consultations

The Effectiveness of Telemental

Health Applications (TMH): A Review

Hailey D, Roine R, Ohinmaa A

Canadian Journal of Psych; Nov 2008

“A review of 65 studies found that in

83% of studies, TMH was judged to

Feasibility, acceptability, and

sustainability of telepsychiatry for

children and adolescents

Myers K, Valentine J, Melzer S

Psychiatric Services, Nov2007

“Telepsychiatry is a feasible and

acceptable approach to providing

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83% of studies, TMH was judged to

have been successful.”

“There was evidence of success with

TMH in the areas of child psychiatry,

depression, dementia, schizophrenia,

suicide prevention, posttraumatic

stress, panic disorders, substance

abuse, eating disorders, and

smoking prevention.”

acceptable approach to providing

psychiatric services to youths.”

Is telepsychiatry equivalent to face-

to-face psychiatry?

O’Reilly R, Bishop J, et al

Psychiatric Services, Jun 2007

“Telepsychiatry produced clinical

outcomes that were equivalent to

those achieved when the service was

provided face to face.”

Telemedicine offers additional

clinical benefits

Whole System

Demonstrator Program,

Headline Findings –

December 2011 (UK):

• Lowers spending on

chronically ill by 13%

Ontario Telehealth Network

Report (May 2012):

• 64 – 66 % decrease in

hospital admissions

• 72 – 74% reduction in

VA Telehealth Study:

• 25% reduction in bed days

• 19% reduction in hospital admissions

• 56% total utilization

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chronically ill by 13%

• 45% reduction in

mortality rates

• 20% reduction in ED

visits

• 14% reduction in bed

days

• 14% reduction in elective

procedures

• 72 – 74% reduction in

emergency department

visits

• 16 – 33% decrease in

number of PCP visits

• 95 – 97% reduction in

walk-in clinic visits

• High levels of patient and

provider satisfaction

• 56% total utilization reduction for depression

• Eliminated co-pays for telemedicine sessions

• Targeted over 200,000 telemed encounters for 2012

• Proposed nationwide telemed licensure for VA doctors

What can you do today to setup a

telepsychiatry program in your hospital?

Speak to your hospital executives

about telepsychiatry

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Incorporate telepsychiatry as part of

your hospital’s strategic initiatives

Speak with a telepsychiatry

specialist, such as 1DocWay

For more information or to request a free consultation

Email: info@1DocWay.com

Call: 1800-617-7342