D2C Telehealth Could Cut Costs for Employers, Study Finds
Outsourcing telehealth programs could save employers money and time
It’s no secret that healthcare costs are rising, making it one of the most significant issues the United States faces today. Multiple stakeholders, especially employers, are experiencing the financial impact of chronic disease management, administrative waste and an aging population.
Approximately 60% of individuals under 65 receive health insurance through an employer. Yet, the cost of premiums is increasing. As a result, many employers want their employees to share more of the costs, which may lead to delayed care and a more expensive workforce later on.
Fortunately, though, telehealth may be a viable solution. One study published by The American Journal of Managed Care discovered that direct-to-consumer (DTC) telemedicine could cut costs for employers. Below, we’ll discuss this study more and how telehealth outsourcing could be the relief that employers need.
A study on telemedicine for health system employees
Background
This study was done at Penn Medicine, a large academic health system serving patients in southeast Pennsylvania, Delaware and New Jersey. Penn Medicine is self-insured, with over 90% of its employees utilizing their preferred provider organization (PPO) plan. Employees and their adult dependents covered by the plan can also use OnDemand, their 24/7 DTC telemedicine benefit.
OnDemand is staffed by the health system's own nurse practitioners, who perform telemedicine visits from a central technology hub. They’re overseen by a medical director and have 24/7 onsite support. They also employ administrative staff who coordinate patient follow-up care within Penn Medicine’s network.
The outcome of the study
Researchers performed an economic assessment of this telemedicine setup between July 1, 2017, and December 31, 2019. Upon study completion, they discovered the following:
DTC telemedicine staffed by a health system and provided to their employees decreased per-episode unit costs for care and,
This offer only marginally increased the use of services
Ultimately, these results suggest that this arrangement led to lower overall costs. Researchers went on to describe how the cost of care in the U.S. could be reduced if a non-health system could also achieve these results.
Telehealth: An employer’s solution for reducing costs?
In 1962, healthcare spending made up only 5% of the GDP, and by 2022, it had increased to 17%. These figures are alarming, especially considering that healthcare spending is only growing and the high costs aren’t being tied to improved patient outcomes. Therefore, solutions, like the one at Penn Medicine, are needed.
However, is this only possible for employers that already have an internal network? Not at all.
Thanks to solutions like OpenLoop, any company or benefits broker can offer virtual care programs to their employees easily. By outsourcing your telehealth programs and tapping into pre-built infrastructure solutions, you can spin up an entire wellness package in no time.
The advantages of outsourcing telehealth for your employee programs
First, let’s quickly define telehealth outsourcing to ensure we’re on the same page.
Outsourcing your telehealth enables employers to achieve the perks of offering telemedicine benefits, such as decreased absenteeism and increased employee satisfaction, without the need to acquire or manage all the back-end infrastructure. These days, employees see telemedicine benefits as a must-have, and over 90% of large firms provide it as part of their benefits package.
Therefore, telehealth is crucial to staying competitive. To prove this, we’ve listed all the major benefits you can likely expect from outsourcing for your business.
Seamless staffing process
Hiring clinicians is no easy feat—time or cost-wise. If your organization builds an in-house virtual care solution, it’ll require more work from your human resource staff as they’ll have to create job postings, perform interviews and aid with onboarding. On top of a clinician's salary, you’ll have to provide them with benefits and perks, among other costs. Plus, if you’re in a rural location, you might find it incredibly difficult to find primary care and specialty clinicians.
Thankfully, you can avoid this by outsourcing your clinician network. Not only would you get 24/7 coverage, but you’ll also get access to NCQA-certified, tough-to-fill primary and specialty care providers. Additionally, you don’t have to deal with any of the HR tasks or administrative headaches.
Fast scalability & legal infrastructure
Adding a telehealth component to your organization’s benefit plan without the aid of a virtual care company could take several years of planning. This is because the healthcare space is unique, with its various laws, regulations and intricacies.
Yet, if you partner with a telehealth services company, you benefit from their familiarity and expertise, allowing you to bypass things that often take months or years to organize. Plus, with access to an extensive clinician network, you’re looking at a rapid ramp-up with dedicated support aligned with demand.
Customized to fit your brand
Brand continuity is important, and many employers fear they’ll lose some of it by partnering with a telehealth vendor. You might worry about employee confusion or resistance if you begin offering video consultations via “XYZ Telehealth Company.” However, there are fully white-labeled options out there!
Envision how much your company would stand out with a fully branded virtual care program. Well, that’s possible with virtual care white-label services. With a solution like OpenLoop's full-stack, white-label platform, you can streamline the go-to market without sacrificing quality or allocating tons of money and resources trying to design it in-house. Our solution would customize telehealth workflows to fit your business specifications and employee needs.
Multi-level cost benefits
Offering telehealth as part of your health plan should lead to cost savings in multiple ways. For one, telehealth tends to be more affordable than in-person care. Health Affairs shared that the average telehealth visit costs $79, while in-person visits cost $146. It also removed transportation requirements and expands access to more specialty care physicians. Offering your employees quick but comprehensive benefits offerings.
The National Committee for Quality Assurance (NCQA) also shared that telemedicine prevents more costly care. Since virtual care delivery is quick and efficient, your employees are less likely to delay or forego treatment until it becomes a bigger issue that requires urgent or emergency department assistance. Long-term a healthier workforce could result in decreased insurance premiums for you and your employees.
OpenLoop powers cost-effective benefits solutions for employers
As healthcare costs continue to rise, employers face mounting pressure to provide affordable, quality care options that support both their workforce and their bottom line. Every decision you make affects not only your organization’s finances but also your employees' well-being and engagement.
Telehealth is a proven, competitive solution—and it’s here to stay. By partnering with OpenLoop to deliver telehealth services, you can control escalating healthcare costs while improving employee access to care. Let us help you create a healthier, more resilient workforce without sacrificing quality or flexibility.
Our full suite of white-labeled virtual care infrastructure solutions include: