Last Updated | October 10, 2024
Overview – The Concept Of Remote Patient Monitoring Cost
Many healthcare professionals turned to remote and virtual patient care because of its flexibility and convenience. Virtual care models have demonstrated success with continuous monitoring and cost-effectiveness, even in routine healthcare settings. Thanks to remote patient monitoring (RPM), it is now feasible to monitor some aspects of a patient’s health without an in-person visit. But what is the cost of remote patient monitoring?
The yearly cost of remote patient monitoring services per patient has been reported to range between $275 and $7,963. However, this wide pricing range seems unrealistic on both ends. For a more accurate estimate, we referred to Product-based remote patient monitoring, which lists an average yearly cost of $1,000 to $2,000 per patient for remote patient monitoring telehealth.
Why RPM Is A Cost-Effective Solution?
By 2025, 26.2% of the US population will benefit from the effective remote patient monitoring cost; according to Insider Intelligence’s forecasts, in an MSI International survey titled “American’s Perceptions of Remote Monitoring in Health,” four out of every five patients support RPM. Almost half of them supported including RPM in their present medical care plans.
Technology for remote patient monitoring makes it possible to gather crucial data that healthcare professionals use to make treatment plans backed by historical and real-time data. Quick, reliable access to this data influences correct diagnoses, continued care decisions, and readmissions avoidance.
Both Patients and doctors may see the advantages of remote monitoring. The MSI research stated that patients understand the pros and cons of patient portals. The overall responses indicated that the population is willing to incorporate remote patient monitoring systems by the following percentages.
- 43% said RPM was convenient.
- 39% favored RPM’s care efficiency.
- 37% thought using RPM gave them more control over their health.
- 36% valued RPM’s increased diagnostic accuracy.
- 36% recognized RPM’s ability to provide peace of mind.
Overview Of The Different Types Of RPM Programs Available
Remote patient monitoring (RPM) is becoming deeply integrated into a variety of clinical workflows, allowing physicians to prescribe it to patients in innovative ways that enhance patient satisfaction.
Digital Therapeutics
The cost of implementing remote patient monitoring systems plays a crucial role in delivering digital therapeutics through RPM solutions. Digital therapeutics, a relatively newer concept, involves using mHealth and telehealth software, tools, and applications to offer a “new category of medical interventions.”
Numerous patient situations, including chronic diseases and a wide range of additional therapies, are under the purview of digital therapeutics as one of the many benefits of remote patient monitoring.
One factor supporting this trend, which experts think will develop quickly in its early stages, is the possibility of digital medicines acting as a step therapy before more intrusive action is taken or as a way to assist in customizing care and minimize difficulties in the treatment of other ailments.
Post-Discharge Care
In addition to chronic care management, remote patient monitoring is growing as a cost-effective tool for treating high-risk patients. Healthcare teams may better manage the health of high-risk patients in the critically essential period after their discharge from acute care by utilizing remote monitoring healthcare to monitor each patient’s vital signs and other crucial data.
These post-discharge services come in two phases: transitional care management (TCM) and primary care management (PCM).
Both PCM and TCM treat high-risk patients with a single high-risk illness, depending on remote patient monitoring. The goal is to prevent readmissions, re-hospitalizations, and the emergence of comorbid conditions in these patients.
HaH
Hah, or hospital-at-home, is a care management model that uses a hospital patient monitoring system to provide care at a patient’s home or residence to encourage participation and results. HaH, can be a good strategy for minimizing the risk of hospital infections and freeing up bed space.
Similar to CCM (chronic care management), HaH is used more often with patients with injury or chronic disease who are stable enough to leave the hospital without risk. It was created to provide a complete alternative to hospital treatment in addition to being employed in a post-acute framework. It also heavily utilizes remote monitoring healthcare technology because it is remote-delivered and supported by a round-the-clock clinical service in the backend.
Population Health Management
Population health management is becoming a crucial component of providing care. The Population Healthcare Model allows doctors to improve outcomes by focusing on specific results, metrics, and accountability standards within particular patient segments. It enables providers to concentrate on effective treatment of the overall patient population.
Remote patient monitoring systems frequently act as the cornerstone of CCM treatment by enabling the regular capture, transmission, and analysis of patient’s vital signs and other significant physiologic data. In addition, patient monitoring systems can enhance the doctor-patient connection by offering improved continuity of care and assisting in more closely coordinating treatment at a fraction of the price through less RPM Cost.
RPM Can Improve Clinical & Financial Outcomes
Cost Of Implementing Remote Patient Monitoring System
The potential income for a medical practice is calculated by multiplying the total number of eligible patients by the monthly billable codes and the reimbursement rate. However, the critical question remains: What is the actual cost of implementing a remote patient monitoring system?
With an average of 10% of Medicare patients and more than 2/3s of those patients having at least one chronic disease, patient panels typically have a size between 1,800 and 2,000. Keeping the criteria in mind, a practice might anticipate making between $144,000 and $160,000 per physician from remote monitoring of its chronically sick Medicare patients, assuming an average yearly income per chronic illness of about $100.
RPM costs are low, and it decreases medical expenses by assisting doctors in seeing changes in a patient’s condition before they become serious. It enables healthcare professionals to take action before a hospital stay is required or can assist in identifying and treating acute diseases before they necessitate emergency treatment.
It is essential to highlight that increased outreach to specific patient groups, such as individuals with chronic illnesses, the elderly, and those in rural areas, has resulted in higher returns on investment for both patients and healthcare providers. By following hospital patient flow best practices, providers can expand their networks to reach those who need care the most, reducing the need for travel and related expenses with a hospital patient monitoring system that ultimately improves access and outcomes.
Breakdown of Possible Fees Incurred With Remote Patient Monitoring Cost
When considering (RPM) remote patient monitoring systems, it’s essential to understand the upfront costs, recurring fees, and maintenance expenses associated with various hardware and software components.
Implementing remote healthcare monitoring means using devices to monitor the patient’s vital signs. RPM devices include blood pressure monitors, glucose meters, smartwatches with activity, sleep, and pulse detectors, as well as smart patches that you apply to a portion of your body to gather various indicators. The cost of remote patient monitoring devices is typically higher.
RPM Devices
Software and hardware costs are the major contributors to implementing patient monitoring systems. The further breakdown of individual devices and software required is listed below:
Blood Pressure Monitors
The cost of blood pressure monitors can vary significantly depending on features, accuracy, and brand. Factors like wireless connectivity, smartphone compatibility, and battery life can influence the price.
Glucose Meters
Glucose meters used in patient monitoring systems come in different models with varying accuracy, features, and price points. Consider factors like the number of test strips included, connectivity options, and the availability of continuous glucose monitoring (CGM) features.
Smartwatches
Smartwatches with built-in health monitoring capabilities can be a cost-effective solution for lowering RPM cost. However, the level of features and accuracy may be limited compared to dedicated medical devices, and this can be further identified by the type of disease and data you’re looking to monitor.
Integration and Setup Costs
It’s important for healthcare organizations to evaluate the potential integration and setup costs associated with RPM systems. Integrating remote patient monitoring systems with existing electronic health records (EHRs) and other healthcare IT infrastructure can involve additional costs that healthcare organizations need to consider. These costs may include:
Data Integration Fees
Connecting RPM devices and software platforms to EHRs and other systems requires specialized data integration services. These services can involve extracting data from RPM devices, transforming it into a compatible format, and securely transferring it to the EHR. Data integration fees can vary depending on the complexity of the integration process, the volume of data transferred, and the specific requirements of the healthcare organization.
Customization Fees
Tailoring Remote patient monitoring systems to meet the unique needs of a healthcare organization may involve customization efforts. This can include customizing patient portals, integrating with existing workflows, or developing custom reports and alerts. Customization fees can vary based on the extent of the customization required and the complexity of the development process.
Technical Support Fees
Implementing and maintaining RPM systems often requires technical support to address setup issues, troubleshoot problems, provide ongoing maintenance, and change the RPM cost. Technical support fees can vary depending on the level of support required, the frequency of support requests, and the specific terms of the support agreement.
Cost Implications
When evaluating the system to determine the RPM cost, consider the long-term benefits of investing in a solution that can accommodate future growth, enhance patient engagement, and improve care quality with minimal costs.
Upfront Costs
Implementing a scalable and highly customized remote patient monitoring system may involve higher upfront costs due to the need for specialized hardware, software, and integration services.
Ongoing Costs
The ongoing RPM cost of maintaining a scalable and customized patient monitoring system may also be higher, as they may include additional licensing fees, technical support, and data storage costs.
Scalability and Customization
The cost of remote patient monitoring (RPM) systems can vary significantly based on the size of the healthcare organization and the level of customization required.
Number of Patients
As the number of patients using patient monitoring system increases, the need for scalable solutions becomes more critical. Thus, opting for scalable systems can handle a larger volume of data, accommodate more devices, and support a growing number of users over time without any huge investment to install or expand new functionalities in the system.
Device Variety
There are various specialty hospital patient monitoring systems that work with different devices according to the requirement. Suppose a healthcare organization plans to use a variety of patient monitoring devices (e.g., blood pressure monitors, glucose meters, and smartwatches). In that case, the RPM system must be able to accommodate different data formats and communication protocols.
Data Storage and Analytics
Scalable data storage systems should be integrated with RPM systems. They have the ability to handle large volumes of patient data and provide robust analytics capabilities for monitoring trends, identifying patterns, and making data-driven decisions with the increasing size and complexity of the healthcare system.
Training And Setup
Utilizing anything outside the box is fantastic. It is also less expensive because the software and hardware setup for remote patient monitoring devices has been standardized in advance. For businesses that have never done this before, having assistance during the first rollout phase is a relief and justifies the setup price. If you need considerable customization and integration, be prepared to spend extra because the training sessions are provided for free.
Staff
Since personnel is typically not included in the price of a remote patient monitoring kit, this may be a little outside the scope of an RPM system. However, hiring employees who manage the implementation of a patient portal system is a significant cost factor when designing any project. A virtual nurse takes care of 80–100 patients. You can divide their annual income by 80–100 to estimate the yearly staffing expenditures per patient.
Customer Service
There are many tiers of customer service. The remote patient monitoring cost changes according to how quickly and frequently assistance is provided. Some businesses solely use ticket-based systems, making it impossible to communicate instantly. Others will set up phone and chat lines that are always open so you may obtain the assistance you require.
Ways To Cut Costs When Investing In An RPM Program
Implementing a remote patient monitoring (RPM) program can be cost-effective by optimizing device selection, streamlining data management, and leveraging reimbursement opportunities. Focus on scalable solutions and efficient workflows to maximize ROI while minimizing upfront expenses. Below are the factors to consider when investing in a remote monitoring healthcare system, keeping the costs low.
1. Cost Evaluation
Analyze the expenses of installing and sustaining an RPM program to start. This covers the initial investments made in hardware, software integration, personnel training, and technical support services. To fully comprehend the financial ramifications, carefully evaluate the one-time and ongoing costs.
2. Improved Use Of Resources
RPM can maximize how your practice uses its resources. Analyze the time and effort saved by cutting back on in-person follow-ups and monitoring. Think about the possible increase in patient capacity brought on by the increased efficiency brought on by RPM. Determine the effect on physician productivity, nursing staff efficiency, and overall workflow improvement.
3. Revenue Possibilities
Determine the possible sources of income that RPM can produce by leveraging remote patient monitoring in telehealth. Good hospital patient monitoring providers and other payers will compensate you for remote monitoring services when the specific requirements are satisfied. Learn the payment rules and codes that apply to your practice and patient base.
4. Retention And Patient Satisfaction
Patients who are happy with their service are more likely to return to your office. Analyze the retention rates, feedback, and patient satisfaction scores for individuals taking part in RPM programs. Long-term revenue development is facilitated by satisfied and engaged patients who are more likely to follow prescribed treatment programs and refer your practice to others.
Folio3 Digital Health – The Leading Provider of Custom Software Solutions
Remote patient monitoring is expected to become an integral part of the modern healthcare system by enabling providers to monitor their patients outside of traditional healthcare settings. RPM is becoming essential, and taking the right step on the right time is critical to your medical practice to meet the industry standards and ensure patient satisfaction with the latest technology,
With over a decade of experience, Folio3 Digital Health excels in developing innovative solutions with our expert team committed to delivering the desired product with an effective and strategic approach. Building custom healthcare software development for your tailored needs that yields measurable results for your practice.
Final Words
In the end, an effective RPM cost strategy for managing patients with chronic diseases for their lifetimes to anticipate financial output and excellent returns on your investment is the best remote patient monitoring cost can offer to you.
Frequently Asked Questions: Remote Patient Monitoring Cost
How cost-effective is remote patient monitoring?
Remote monitoring is a high-value treatment since the base-case incremental cost-effectiveness ratio was $10 752 per year of quality-adjusted life. RPM provides a practical method for managing patients with implanted cardioverter-defibrillators over the long term.
What is the average cost of RPM?
The projected overall cost of implementing RPM was $4,374,544, with an average yearly program cost of $1,249,870, or US$3207 for each participant (n = 1364) who completed the three-month program.
How is patient data collected and stored?
To gather data, patients can be interviewed in a clinical context, asked to fill out a paper form, or asked to complete an online form, among other methods. Observations take place every time the healthcare staff interacts with the client or other support personnel. The majority of interviews occur during the nurse’s health history. The primary method in physical health evaluations is examination.
Are there any long-term savings associated with remote patient monitoring cost?
RPM’s overall health economic evidence is helpful for decision-makers considering RPM investment options for managing chronic diseases. RPM was much more cost-effective than standard therapy for hypertension, where additional cost savings may be realized over the long run due to the avoidance of expensive health events.
How much does a remote patient monitoring system cost?
Generally, the average RPM cost per patient can range from $100 to $500 per month. However, this can vary widely depending on the factors.
- Type of RPM
- Frequency of Monitoring
- Device Complexity
- Software Feature
- Support Services
About the Author
Ahmed Sufyan Samee
Ahmed Sufyan Samee is a seasoned digital marketer with 3+ years of experience. Specializing in SEO, he excels in optimizing online content and managing display campaigns. His expertise extends to YouTube SEO, enhancing brand visibility and engagement. Sufyan is known for his strategic approach, leveraging PPC and SEO to drive measurable results. Committed to staying ahead in the dynamic digital landscape.
