| Businesses, Legislation Back Telemedicine |
Communications Daily 08/14/2008
Author: Yu-Ting Wang
© Copyright 2008 Warren Communications News, Inc. All Rights Reserved.
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The U.S. telemedicine industry will see more entrants and solid legislative support in the next Congress, officials and analysts said. But reimbursement and network limitations are hurdles. Meanwhile, Alcatel-Lucent seeks a U.S. partner to start its new telecare service, a company official said. Telemedicine has seen more investment and deployment despite being in its early stages, said American Telemedicine Association CEO Jonathan Linkous in an interview. The goal is to "mainstream telemedicine," he said. By 2013, the U.S. market will exceed $1.8 billion, estimated Pike & Fischer analyst Timothy Deal. Specialized handsets will emerge that are designed to access patient data, while new mobile medical devices facilitate remote monitoring, Deal said.
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New entrants with both wireline and wireless technologies are positioned for "competitive dominance" the next five to 10 years, Deal said. Key attributes include good partnerships with health care providers, network ownership, multi-faceted solutions and proven track records with "top-level clients," he said. AT&T and others will see "dramatic growth," he said, with Verizon and Sprint Nextel playing "large roles" as they provide competitively priced and "compelling services."
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The industry has enjoyed legislative support, Linkous said, citing the newly enacted Medicare Improvement for Patients and Providers Act of 2008. That law's provisions include establishment of more originating sites for Medicare reimbursement. Telemedicine has bipartisan backing and both presidential candidates are "generally supportive," said Linkous. Telemedicine will be "an important part" of health care reform in 2009, he said, since more than 30 telemedicine-related bills are pending. This Congress is unlikely to act on them, but telemedicine will be "very popular in the next Congress," Linkous predicted. Federal support now comes mainly in the form of $471 million in FCC grants aiding construction of medical networks in 42 states, Deal said.
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But third-party reimbursement is a key barrier, officials said. Coverage usually occurs under set rules that don't always accommodate telemedicine, said a Commerce Department report. Reimbursement also favors face-to-face medical care, said Alexander Vo, executive director of the AT&T Center for Telehealth Research and Policy. Coverage models should be developed that incorporate telehealth, with reimbursement for such care standardized among states, he said.
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Network limitations and security concerns are other barriers. Whenever new telecom technologies emerge in the health arena, fear rises about the risk of data breaches and malpractice suits, said Deal. Telemedicine often involves high traffic volume with a potential to congest networks, causing transmission delays or jitter, said Vo. Telehealth networks must be able to deliver data in real time, even amid high traffic, he said. Deal agreed, saying network reliability is key. Meanwhile, Alcatel-Lucent seeks a U.S. partner to help deliver a new telemedicine service, its LifeStat remote monitoring and health management, the company said. LifeStat lets patients with chronic conditions use handsets to send information to a network-based analytical tool. The company has talked with several U.S. carriers and health care providers, said Jonathan Segel, Alcatel director of systems development and integration engineering. The U.S. carriers see the service as a revenue source and a good way to keep customers and reduce churn, he said. Service in the U.S. will be focused on diabetes and hypertension treatments, he said.
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