Upto $250B of healthcare spending could shift to virtual: McKinsey report

telehealth

More patients and providers are being exposed to telehealth and virtual care. In such a scenario, a report was published by McKinsey predicting that $250 billion of current U.S. healthcare spending could be virtualized.

This shift to virtual healthcare has been often publicized surge of telehealth adoption due to the COVID-19 public health emergency.

The report author cited a handful of recent consumer and physician surveys conducted by the firm. The author reports a jump from 11% of U.S. consumers using these technologies in 2019 to 76% now saying that it is moderately and highly possible to use telehealth in future.

Provider survey respondents said they are presently conducting 50 to 175 times the number of telehealth visits than they did before the COVID-19 situation. 57% noted that they now view telehealth in a more favorable manner.

The report’s author noted that the current crisis demonstrated the relevance of telehealth and it created an opening to modernize care delivery system. Modernization will be achieved when telehealth will be embedded in the care continuum of scale.

Keeping these trends in mind, McKinsey analysts pointed out several nonacute care models that can be virtually conducted. These include: on-demand virtual urgent care, near-virtual office visits, tech-enabled home medication administration, virtual office visits and virtual home health services.

A shift of these areas of care to virtual services led to a short-term benefit during the COVID-19 crisis. It also has the capacity to improve access to care, healthcare-spending efficiency, patient experience and health outcomes.

Analysts have recommended the payers should define a value-backed virtual health road map. They should also, accelerate value-based contracting incentivizing telehealth, build innovative product designs with virtual health and integrate virtual health into care delivery.

The key for health systems will be to prioritize a comprehensive digital front door for consumers, build virtual care capabilities and incentives for clinicians. Also, better quantify outcomes and more benefits to support advocacy for these technologies.