Stimulus to fund $400 million in telehealth links, but insurers still reluctant to pay for services

The federal EMR subsidy program doesn't start until fiscal year 2011, but the American Telemedicine Association believes that there will be $400 million available from the economic stimulus legislation over the next six months to set up high-definition videoconferencing links between hospitals and remote, underserved facilities for the purpose of expanding telehealth services. That's sure to give a shot in the arm to an industry segment that's growing at 15 percent a year, the Wall Street Journal reports.

But it's the ongoing expenses and, of course, the need to compensate physicians for their time, that have left many health systems reluctant to invest in the technology, which can run $30,000 to $50,000 per installation. "If you aren't getting reimbursed, that quickly becomes a real challenge," Morna Smith, director of federal relations and health policy for Nationwide Children's Hospital in Columbus, Ohio, tells the Journal.

Right now, UnitedHealth Group is the only national insurer to reimburse hospitals for a wide range of videoconferncing services. CMS will pay only for the remote treatment of Medicare patients who live in areas with a shortage of primary-care physicians. Others are looking at doing so, but either don't see the critical mass or are waiting for a standard definition of video consultations and expected outcomes before changing their policies.

For more information on videoconferencing-based telemedicine:
- have a look at this Wall Street Journal story [1]
- read about UnitedHealth's Connected Care program [2]

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UnitedHealth Group, Cisco launch telehealth network [3]
Colorado to create country's largest telehealth network [4]
Hospital uses remote neurologists to treat strokes [5]