Image Area. Advancing the Reach and Role of Telehealth. The Growing Demand for Innovation in a Changing Industry

Transcription

1 Image Area Advancing the Reach and Role of Telehealth The Growing Demand for Innovation in a Changing Industry March 2016

2 Table of Contents Introduction...2 What is Telehealth?...2 Why do we need Telehealth?...3 Market Data and Effective Solutions...5 The VirtuMedix Solution...7 Conclusion...9 Glossary of Acronyms...10 About Comtech Telecommunications Corp...10 Page 1

3 Telehealth combines technology and provider accessibility to improve the convenience, availability, and efficiency of healthcare. Introduction Today s healthcare industry is filled with ever more innovative technologies designed to expand access to health services, increase operational efficiency, and improve patient engagement and satisfaction. The most recent advances in both telehealth platforms and mobile health applications, will forever change the way we think about and practice healthcare. As patients become increasingly comfortable with the idea that healthcare appointments can be virtual, they want and often demand the immediacy, accessibility, and cost-effective benefits offered by telehealth. While the concept of telehealth may not be entirely new, never before has it been so important. Today s innovative telehealth solutions will change the way we think about and practice healthcare. Whether it is used to manage chronic illnesses, monitor patient conditions from afar, or triage victims with an emergency, telehealth advances can provide significant improvements for patients and providers alike. Of course, concerns about patient privacy and security of their personal health information are at the forefront of any healthcare technology. Compliance with government regulations such as the Health Insurance Portability and Accountability Act (HIPAA) and the Health Information Technology for Economic and Clinical Health (HITECH) Act is essential, as mobile health becomes less science fiction and more everyday reality. What is Telehealth? Telehealth can be broken down into four basic categories: general telehealth information technology (IT); remote monitoring; video telemedicine; and mobile health, or mhealth. To explain these further: General telehealth IT - includes all items regarding health information exchange, such as electronic health records, patient portals, and hosted cloud infrastructure. The application of cutting-edge technology can lead to system-wide improvements. Remote monitoring - involves any monitoring that can be done away from the doctor s offic, like tracking a diabetes patient s glucose level or a cardiac Page 2

4 patient s blood pressure through a web-connected device. Video telemedicine - not only includes video consultation with doctors, but also distance learning/simulation and teleimaging. mhealth - pertains more to the application side of telehealth, encompassing wellness and fitness apps, and informational services provided through Short Message Service (SMS) text messages. While telehealth is a generic term covering a variety of electronic and telecommunication techniques, it can be effectively used in a multitude of healthcare, patient care, and educational situations. It has the potential to deliver significant benefits to patients, physicians and the health industry as a whole. Why Do We Need Telehealth? Longer life spans and lower mortality rates have resulted in a growing senior citizen base in this country. According to the 2010 U.S. census, the 60- to 64-year-old age group was the fastest growing, at 55 percent over the past decade. 1 This expanding population of senior citizens, often require increasingly more healthcare services. Telehealth allows them to stay connected to their healthcare professionals in a cost-effective manner, allowing better healthcare delivery that focuses on the patient s overall health, rather than immediate symptoms. By the Numbers 66% of ER visits are for non-emergencies Other population groups that benefit from such a system include the homebound, the severely disabled, the morbidly obese, and those who live in rural or isolated communities where access to healthcare resources can often be scarce. Telehealth provides easy access, individualized healthcare with an experience ranging from a one-time consultation, to post procedure follow ups, to ongoing monitoring. In addition, telehealth promotes preventive treatment, which is playing a much larger and more important role in the nation s changing health insurance system. The healthcare industry is transitioning toward an Accountable Care Organization (ACO) model in which reimbursement is contingent on quality and outcome metrics. The objective is to have practitioners and healthcare services put a greater focus on the overall health of the patient and ensure that there is a care continuum for 1 Age and Sex Composition: 2010, United States Census Bureau, retrieved Nov. 20, 2013, from Page 3

5 ongoing health management. The overarching purpose is to incentivize appropriate patient care management in order to: Focus on healthier patients and overall wellness, thereby requiring fewer costly services. Care coordination and improved outcomes. Provider accountability which rewards financial incentives on the value of care delivered versus volume of services provided. Engagement of the patient to a more active role as a healthcare consumer. This changing focus will create a stronger relationship between patients and their service providers. The benefits of telehealth vi tualized health services and care, increased access to differing services and geographies, and lower cost and larger data streams will allow doctors to provide better and more effective care while patients become more informed and have improved access to costeffective care options. In addition to convenience, the ability to monitor patients remotely has proven to substantially increase patient quality of life while reducing the risk of hospitalization and death. 2 Further, telehealth provides access to healthcare for those who might otherwise go without, such as those who live in isolated communities, the elderly, and the disabled. From a provider s standpoint, telehealth allows healthcare professionals to make the best use of their resources. Brick and mortar care delivery models can be augmented as a technology enabled telehealth service line. The benefits of telehealth will allow doctors to provide better and more effective care. Finally, providers who suffer from a worker shortage and hospital systems, whose emergency rooms are overburdened, benefit from virtualized consultants that allow patients rapid access to healthcare services. These virtualized services not only provide a more cost effective venue for treating patients, but also alleviate the strained emergency departments. 2 Clinical Benefits of Telehealth, Philips, retrieved Nov. 20, 2013, from benefits_clinical.html Page 4

6 The payer community (e.g., insurance, Medicare, and Medicaid providers) has recognized this transformation and the benefits o telehealth. An increasing number of states are allowing private payers to reimburse for telehealth services, and recent legislation promotes the use of telehealth technology. 3 Meanwhile, the Department of Health and Human Services is advocating further technological advances and adoption. Given the changing reimbursement models, telehealth is ideally positioned to benefit f om the shifting paradigm. Market Data and Effective Solutions As life expectancies increase worldwide, the need for telehealth also escalates. According to the World Health Organization (WHO), almost a billion people globally are living with a chronic disease of some kind. The WHO predicts that the global telehealth industry will be worth $18 billion by 2015 due to new technology applicable to areas such as cardiology, dermatology, dentistry, pathology, pediatrics, psychiatry, and radiology. 4 As shown in Figure 1 below, significant g owth rates are predicted for each telehealth category. Figure 1. Telehealth Growth Rates and Market Data Telehealth Growth Rates and Market Data Domestic Market Size Growth rates of products in the market Predicted growth rates for next 5 years Pricing Pressures Marketing Saturation Current Trends of product use General Telehealth IT Remote Monitoring Video Telemedicine mhealth 2.74 billion $1.74 billion $279.9 million $428.5 million 13.50% 13.50% 13.10% 13.90% 10.30% 10.20% 16.70% High on consumer (8 out of 10) Low (13.9% market potential) Demand for Innovation (9 out of 10) Medium price sensativity (6 out of 10) Medium Demand for Innovation (8 out of 10) High price sensativity (10 out of 10) Low (13.9% market potential) Demand for Innovation (8 out of 10) 4.8% (low due to app pricing pressures) High price sensativity (9 out of 10) High Demand for Innovation (10 out of 10) 3 Pending Legislation and Regulation, National Telehealth Policy Research Center, retrieved Nov. 20, 2013, from Source: Frost and Sullivan, August 2012 Page 5

7 For years, medical records and images, test results, referrals, and other vital patient information has been compiled, stored, and transferred electronically. Telehealth is the next exciting step in the digital evolution of healthcare. It creates increased convenience for physicians, medical staff, and patients, which in turn creates increased demand in a growing market. According to Frost and Sullivan, video telemedicine alone is a $280 million market today that will grow to more than $600 million by 2017, a 16.7 percent increase 5 (see Figure 2 below). Video Telemedicine Market Growth Assessment Opportunity Size (Millions) $600 $500 $400 $300 By the Numbers $200 $ % of patients do not have same-day access to their doctor Year Estimated Figure 2. Growth Assesment of Video Telemedicine Market Meeting the demands and challenges of telemedicine requires more than the technology to connect, a patient in Fox River, Alaska, to a doctor in Baltimore, Maryland. To comply with current regulations, the network and equipment transmitting and storing that information must be secure. Without the proper precautions, a medical data breach can result and in turn lead to everything from identity theft to billing fraud. The examples of these breaches, while tending towards human error (e.g. unencrypted stolen laptop), are numerous and growing. Comtech, given its pedigree as the nation s number one e911 and NG911 services coupled with its cybersecurity work, is keenly aware that security cannot be taken lightly. 5 Frost and Sullivan, August 2012 Page 6

8 Businesses that are to benefit most f om this emerging market will offer services through their platforms that are designed to optimize convenience, improve quality of life, and further assist end-users while maintaining privacy and security standards throughout. They must also meet the public s demand for less expensive options and a greater variety of features for use on mobile devices. Adding telehealth access to these ubiquitous devices results in a powerful solution for all stakeholders and creates a tremendous opportunity for growth, as shown in Figure 3 below. Telemedicine Growth Rates for 2012 and 2017 * 14% 16% 13% 13% 10% 13% 10% 4.5% mhealth Video Telemedicine *Projected 2012 Figure 3. Telehealth Growth Rates by Category The VirtuMedix Solution Remote Monitoring 2017 General Healthcare IT VirtuMedix is a leading edge telehealth platform that enhances the patientprovider consultation experience. However, VirtuMedix provides practitioners with additional clinical features such as a real-time patient tracking board, which allows clinicians to triage their queue and see patient summary information prior to starting a consultation. Additionally, VirtuMedix has secure messaging functionality and roster-planning tools to ensure that clinicians are aware of wait times and their virtual clinics are properly staffed. VirtuMedix is also patientcentric, offering features such as built-in navigation to ensure that the patient finds exactly the right healthcare facility when necessary. Where is the nearest pharmacy or emergency room? VirtuMedix can show you. How do you get there? VirtuMedix can supply turn-by-turn directions. VirtuMedix provides integrated mapping and navigation services so that patients can find nearby care facilities or pharmacies. Our Connected Health VirtuMedix Platform provides immediate virtual health services to patients from their home, office, or while traveling. Using VirtuMedix, practitioners and caregivers help their patients avoid long waits in hospitals or other urgent care clinics through virtual consultations. In addition, hospitals, health plans, and companies deploying VirtuMedix can rest assured that their constituents Page 7

9 will have access to a cost-effective, highly resilient, and secure platform, which can reduce costs, add a new line of business and improve patient satisfaction and health outcomes. The capability for healthcare providers and insurance companies to reduce costs, increase customer service, improve quality of life, and even increase revenue by using technologies like VirtuMedix, has never been more attainable. Regardless of your role within the healthcare industry, VirtuMedix will enhance your service offerings and bring value to your business model. Page 8

10 Conclusion Healthcare is at a crossroads. Existing technology is improving, and consumers are embracing the idea that virtual telehealth consultations are an attractive alternative to traditional healthcare services. Changes in the nation s healthcare regulations and health insurance system are placing an emphasis on preventive care and long-term health management. Simultaneously, regulations are in place to safeguard patients electronic health information. As the healthcare landscape is disrupted by the shift toward value-based care and consumer directed health, a telehealth revolution will emerge to improve patient engagement, access, convenience, and overall satisfaction. Telehealth s ability to leverage technology ranging from video conferencing and wireless communication to electronic health records and location-based services allows the healthcare industry to make the most of existing resources while expanding accessibility, improving quality of life, and reducing cost for the entire ecosystem. The telehealth industry has grown quickly in response to market demand and continues to grow, creating solutions and opportunities that can save time, money, and lives.. Page 9

11 Glossary of Acronyms ACO EHR HIPAA HITECH ICT IT SMS WHO Accountable Care Organization Electronic Health Record Health Insurance Portability and Accountability Act Health Information Technology for Economic and Clinical Health Information and Communications Technology Information Technology Short Message Service World Health Organization About Comtech Telecommunications Corp. Comtech Telecommunications Corp. (Nasdaq: CMTL) designs, develops, produces and markets innovative products, systems and services for advanced communications solutions. The Company sells products to a diverse customer base in the global commercial and government communications markets. For more information visit Page 10

12 Contact: 2016 Comtech Telecommunications Corp. All rights reserved. Enabling Convergent Technologies is a registered trademark of Comtech. All other trademarks are the property of their respective companies. Information subject to change without notice. NASDAQ: CMTL