While there are several smaller ways to save on health care expenses, the two big ones are reducing hospitalizations and Emergency Room (ER) visits.  We project that there is between a $4.00-8.00 in reduced hospitalization and ER visit costs that can be achieved for every $1.00 of Concierge Telemedicine (CTM) usage.




From the National Center for Health Statistics1 (part of HHS’s Centers for Disease Control and Prevention) some national averages (from 2015) to bear in mind:

  • 4.4% of those under 65 years of age with private insurance had at a hospital stay.  Of that group, there were 18% multiple admissions, although some of these would not be within 30 days to qualify as a readmission.


Thus, for a panel of 1,000 there would be 44 hospitalizations.

  • Overall, the average stay is 4.5 days. 
  • The average cost is $10K per day in the hospital.
  • This gives an average cost per stay of $45K.


The National Cost Institute reports that percentage of hospital readmissions within 30 days is approximately 12%.2 (Thus, for a panel of 1,000 people with 44 hospitalizations, about 4 - 5 would be re-hospitalized within 30 days.)


The office of Veteran Affairs (VA) reports over a 20% reduction in readmissions for patients using telemedicine (40% reduction for mental health, 25 – 30% for CHF & hypertension, 20% for diabetes & COPD).3




Switching to ER visits, the National Center for Health Statistics reports some national averages (from 2013)5.

  • There were 41.9 ER visits per 100 people.
  • 21.4% of those visits were for injuries leaving 32.9 ER visits per 100 for non-injuries.  Of those, 36% used private insurance.
  • Thus, there were approximately 12 ER non-injury visits with private pay per 100 people.
  • The average cost of an ER visit is $1.2K.


In a VA study of patients on telemedicine, they found that over one-third of ER visits and tele-visits were on weekends while only 8% of physician office visits were on weekends.  The VA concluded that telemedicine visits were promising substitutes for ER visits, but did not give a numeric value.

However, the city of Houston has published concrete results from having their paramedics use telemedicine to reduce ER visits.  When EMTs arrive at the scene of a 911 call, they use a tablet to conduct a video chat with a specialist.  They recently had their 10,000th patient encounter with this program and 6,000 of them did not end up with transport to the ER.4 

This is indicative of the power of using telemedicine at the point when the patient is uncertain and worried.  Having a medical professional right there with them (virtually) makes a world of difference – to the well-being of the patient and to the cost of the health care system.



The Concierge Telemedicine provides a plethora of opportunities in the areas of Employer Worksite and Home Use, Schools, Post-acute and Home Health and more.

Please contact us today to discuss potential partnership opportunities.

1 ftp://ftp.cdc.gov/pub/Health_Statistics/NCHS/NHIS/SHS/2015_SHS_Table_P-10.pdf

2 http://www.healthcostinstitute.org
3 http://www.aha.org/content/16/16telehealthissuebrief.pdf
4 http://www.emsworld.com/news/12334469/ethan-telemedicine-program-has-prevented-6000-unnecessary-ed-transports-in-houston​

5 https://www.cdc.gov/nchs/data/ahcd/nhamcs_emergency/2013_ed_web_tables.pdf







Avoiding Emergency Room Visits with Telemedicine

Telemedicine Web Services © 2017  |  All Rights Reserved

Partnership Opportunities

Reducing Hospitalizations with Telemedicine

The Cost Savings of Telemedicine