Remote Patient Monitoring (RPM) programs are growing rapidly. The Centers for Medicare & Medicaid Services (CMS) has continued to expand coverage and eligibility of RPM programs because they work. Clinical research has consistently demonstrated that RPM programs can reduce hospitalizations, readmissions, and overall healthcare costs.
When implemented correctly, RPM programs can generate significant clinical benefits for your practice. However, beyond the service fees to an RPM software vendor, there are direct and indirect costs to consider. Likewise, there are also potential opportunities to help reduce overall costs to the healthcare system by providing RPM. It is also important to understand the implications on patient financial responsibility.
RPM Cost Considerations
To evaluate the financial benefits of an RPM program, it’s important to look at the full cost of a program, including vendor fees, as well as the cost of your staff’s time.
RPM’s Role in Decreasing Overall Costs to the Healthcare System
Impact of Device Purchases
A significant cost of an RPM program is the purchase of FDA-approved devices, such as blood pressure cuffs, weight scales, and glucometers. Typically, these should be purchased from your RPM company so they are provisioned for and connected to your RPM software.
Most RPM companies offer two options for procuring high quality devices.
The right solution for your practice will depend on your RPM goals and financial situation.
RPM Patient Financial Responsibility
RPM is a Medicare Part B service. Patients without supplemental insurance will have a 20 percent co-pay after their deductible is met. This could be up to $375 for patients with high monitoring needs. While some patients may be hesitant to pay for this, there is a strong economic benefit for patients as well as practices.
A single hospitalization without Medicare supplemental insurance could result in a bill over $1,500 and clinical research supports that RPM substantially reduces hospitalizations. Co-pays and deductibles may also apply to commercial patients, but the same logic of preventing higher medical bills applies as well, particularly for patients with chronic diseases.
Ready to Learn More?
If you would like to dive into the financial and clinical implications of RPM at your practice, please schedule a free consultation with one of our RPM experts.
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