Telehealth Platform Cost Savings Calculator

Telehealth Platform Cost Savings Calculator

Stop guessing your ROI. Most people forget to factor in overhead, patient no-shows, and operational inefficiencies when estimating savings from telehealth platforms. The truth is, calculating the real cost savings of telehealth requires a nuanced understanding of your existing practice costs and how telehealth changes those dynamics. It’s not just about the fees charged for virtual visits; it’s about the entire ecosystem of your healthcare delivery.

How to Actually Use It

Gather data from various sources. Start with your existing patient volume and costs associated with in-person visits. You can find these numbers in your billing and operational reports. Look for average patient wait times and the percentage of patients who cancel or do not show up. Don't forget to include the costs of staff time and any overhead associated with those visits. It’s about painting a complete picture of what you currently spend versus what you will spend after implementing telehealth.

The Formula

The formula used in this calculator takes into account various factors: patient volume, average cost per in-person visit, and the expected reduction in no-show rates. It integrates these inputs to provide you with a clear vision of potential cost savings.

Variables Explained

• Patient Volume: This is the total number of patients you see in a month. Get this from your scheduling software or patient management system.
• Average Cost per In-Person Visit: Calculate this from your billing records. This should include all direct costs associated with a visit.
• Reduction in No-Show Rate: Look at your historical data. If you typically have a 20% no-show rate, estimate how much that could improve with telehealth. This is where many get it wrong; they assume all visits will convert seamlessly without accounting for behavioral changes.

Case Study

For example, a client in Texas, a mid-sized clinic, was hesitant to adopt telehealth. They had a patient volume of 400 visits per month, with an average cost of $150 per in-person visit. Post-implementation, they managed to reduce their no-show rate from 20% to 5%. The savings they realized were substantial—over $12,000 in just three months. This isn’t an isolated case; many practices see similar results, but they often miss the critical steps in calculating their true savings.

The Math

The calculator takes all these inputs and runs a straightforward calculation: it multiplies the number of patients by the average cost per visit and then adjusts for the new no-show rate. You end up with a clear picture of savings that can be reinvested into better healthcare delivery or patient engagement initiatives. The simpler the math, the more accurate your understanding of savings.

💡 Industry Pro Tip

Here's a nugget only seasoned consultants know: Always review your insurance reimbursement rates for telehealth visits. Many practices overlook this, but it can significantly influence your overall savings. Additionally, consider the impact of improved patient engagement; satisfied patients lead to higher retention rates and referrals, which are not captured in the typical ROI calculations.

FAQ

• What if I don’t have historical data? Start tracking your visits and costs now. It’s better to have a baseline moving forward than to guess.
• How often should I update my calculations? At least quarterly. Your patient demographic and operational costs can change, impacting your savings.
• Can I integrate this calculator with my existing software? Yes, if you have APIs available, most calculators can interface with scheduling and billing systems to pull data automatically.
• What if telehealth doesn’t work for my practice? Not every model suits every practice. Test the waters with a pilot program before full implementation.