ARTICLE
13 December 2015

Consumerism Drives Employer & Retail Clinics' Telemedicine Adoption In 2016

FL
Foley & Lardner

Contributor

Foley & Lardner LLP looks beyond the law to focus on the constantly evolving demands facing our clients and their industries. With over 1,100 lawyers in 24 offices across the United States, Mexico, Europe and Asia, Foley approaches client service by first understanding our clients’ priorities, objectives and challenges. We work hard to understand our clients’ issues and forge long-term relationships with them to help achieve successful outcomes and solve their legal issues through practical business advice and cutting-edge legal insight. Our clients view us as trusted business advisors because we understand that great legal service is only valuable if it is relevant, practical and beneficial to their businesses.
In response to consumer demands for more personalized health care at a lower cost, employer onsite health clinics and retail clinics will continue to be on the rise in 2016.
United States Food, Drugs, Healthcare, Life Sciences

In response to consumer demands for more personalized health care at a lower cost, employer onsite health clinics and retail clinics will continue to be on the rise in 2016, and telemedicine will be crucial to those clinics offering expanded services at a lesser cost.

With employers projecting a 6% rise in health care benefits costs for 2016 and many bracing for the possibility of increased costs from a looming excise tax under the Affordable Care Act, onsite health clinics are part of an extended strategy to cut down on employees' expensive visits to the ER and other costly providers. Many of these clinics already employ telemedicine, but that number is expected to compound in 2016. A full 74% of respondents to a Business Group on Health survey plan to offer telehealth services to employees — up from 48% the previous year.

On the retail side, savvy health care businesses have learned that many consumers are embracing telemedicine as a means for reducing their health care costs, even when it isn't covered by their insurance. In response to that consumer demand, pharmacy giant CVS is expanding its Health Digital Properties and walk-in Minute Clinic, and has received high marks from patients on its current programs.

Across the board, as telemedicine offerings continue to become more user-friendly, consumers are more willing to use them. According to Accenture, 57% of U.S. consumers track their health information online — including medical history, physical activity, and symptoms. And according to American Well, 64% of Americans are willing to "visit" a doctor via video, and 70% of consumers would rather obtain a common primary-care prescription via video, than from an in-office visit.

The rise of telemedicine outside the traditional provider system also comes with its own legal issues, but efforts are already underway to ensure that services are offered smoothly. Employer and retail clinics' telemedicine expansion is among five telemedicine trends driving health care transformation in 2016 and beyond, including expected reimbursement growth, an uptick in international arrangements and burgeoning state legislation. Our final post will cover the role of Medicare Accountable Care Organizations (ACOs) in the rise of telemedicine.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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