What We’re Reading – McKinsey Analysis: Up to $250B of Healthcare Could Be Virtualized

This article summarized an analysis of the growth in telehealth done by McKinsey & Company, which as we know, has been exponential due to the COVID-19 crisis.  The article noted that providers are seeing 50 to 175 times the number of telehealth patients than prior to this escalation.   It is estimated that an industry that generated approximately $3B in revenue could grow to $250B.  This accounts for 20% of all Medicare, Medicaid and commercial outpatient, office and home health spending. This is seriously staggering!

The news is full of reports of patients who delayed care, some to their detriment, and the article states that 70% of in-person visits were canceled due to the COVID crisis.  However, in just this short time, more than three quarters of survey respondents indicate a likelihood to use telehealth in the future and almost the same percentage reports high satisfaction.  Telehealth is a win for providers as well, with 57% seeing telehealth in a more favorable light and 64% report feeling comfortable using it.

The author concludes that many of the relaxed regulations regarding telehealth could be in place for another 12 to 18 months, so this will certainly be an interesting time for the US healthcare system.

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