Telemedicine Visits Cut Health System Employee Care Costs By 23%

A free direct-to-consumer (DTC) telemedicine service called “OnDemand” offered to employees of a large academic health system (Penn Medicine) resulted in an employee care cost reduction of 23%, but only marginally increased utilization. The OnDemand service was owned, operated, and staffed by Penn Medicine. Starting July 7, 2017, Penn Medicine OnDemand was available to employees 24/7. The average seven-day per-episode per-person cost among employees and beneficiaries was 23% lower for OnDemand encounters, at $379.76, relative to the average $493.49 cost for non-OnDemand care encounters at primary care offices, urgent care clinics . . .