| The Centers for Medicare and Medicaid Services | | | | much of the technology for cost and accessibility |
| reported that in 2009 US healthcare spending | | | | reasons needed the centralized model to be |
| increased 5.6% to $2.47trillion and represented | | | | effective. |
| 17.3% of the US economy. The increase from | | | | Telemedicine involves the use of |
| 2008 to 2009 is the largest jump in healthcare | | | | telecommunications either through traditional |
| spending since 1960, and it is remarkable that in a | | | | phone networks, cell phone networks or the |
| year in which the US economy contracted by | | | | internet to diagnose, treat and monitor patients |
| 2.4% healthcare and the federal government | | | | across large distances. Early use has focused on |
| were the only sectors to show an increase. This | | | | telecardiology and teleradiology where EKG and |
| growth is also occurring from a high base, starting | | | | X-Ray information is transmitted over |
| at a level 30% to 50% higher than most | | | | communication lines and monitored and analyzed |
| industrialized countries, and is unsustainable. | | | | at locations remote from the patient. Recently, |
| Part of the healthcare cost problem is the way | | | | new procedures now allow surgeons to perform |
| that most healthcare services are provided. | | | | certain procedures remotely and many hospitals |
| Hospital Care represents 31.1% of all healthcare | | | | have implemented remote nursing stations that |
| costs and is notoriously expensive. The average | | | | can monitor patients from many facilities from |
| cost for 1 day in the hospital in 2002 was $1,290, | | | | one centralized location. |
| nearly double the average cost from 1990 and | | | | Telemedicine is also being used in the home |
| since 2002 hospital costs have increased by more | | | | healthcare setting to provide emergency alerts |
| than 50%. Professional Services, which in the | | | | through personal emergency response systems |
| Center for Disease Control (CDC) data includes | | | | and the monitoring of patients vital signs such as |
| Physician and clinical services, Dental services and | | | | heart rate, blood pressure, cholesterol and glucose |
| other professional services represents another | | | | level. The latest advances in home healthcare |
| 31.3% of total healthcare costs and Nursing home | | | | telemedicine have been in the area of medication |
| care a further 5.9%. All of these services are | | | | management, which given the costs of poor |
| provided onsite, in facilities and environments that | | | | medication compliance represents an enormous |
| are costly to maintain and where costs are | | | | opportunity to not only save costs but to also |
| increasing rapidly and represent more than 68% | | | | greatly improve medical outcomes and save lives. |
| of the total healthcare expenditure in the US in | | | | Over 50 million people in the US are on three or |
| 2007. | | | | more prescriptions. While many of these |
| Cost however, is only part of the problem with | | | | medications are critical to improving the health of |
| this centralized model of healthcare delivery. | | | | the patient the average compliance rate with their |
| Hospitals, clinics, Doctors offices and even nursing | | | | medication regime is only 50%. Poor medication |
| homes are notorious for spreading disease. | | | | adherence according to the Center for Disease |
| According to a February 2003 article in The New | | | | Control represents a significant healthcare problem |
| England Journal of Medicine between 5% and 10% | | | | resulting in increased costs and poor medical |
| of all patients admitted to an acute-care hospital | | | | outcomes. The current poor rate of medication |
| acquired one or more infections. The CDC | | | | adherence results in 10% of all hospital admissions |
| estimates that there are 1.7million hospital acquired | | | | (30% of all hospital admissions for elderly), |
| infections each year resulting in approximately | | | | 22-40% of all Skilled Nursing Facility admissions, |
| 99,000 deaths, various sources have estimated | | | | 125,000 deaths per year and from $150billion to |
| that these terminal cases alone result in over | | | | $300billion in annual cost/waste. |
| $6billion in healthcare costs each year. These | | | | And this problem will only get worse as longer life |
| economic costs pale in comparison to the pain, | | | | spans and relatively low birth rates increase the |
| suffering and loss of life resulting from these | | | | nation's average age over the coming years. The |
| infections. | | | | older we get, the more medications we require |
| The centralized model also provides a setting that | | | | and as the number of prescriptions increases so |
| is at best impersonal and often dehumanizing. By | | | | too does the amount of non-compliance. As a |
| design the institutional feel of hospitals, clinics, | | | | result, the cost to the health care system due to |
| Doctors' offices and nursing homes can increase | | | | poor adherence is rising significantly. |
| the physical discomfort of patients through raised | | | | There are a number of ways to improve |
| levels of anxiety, disorientation, helplessness and | | | | compliance that have been tested by the medical |
| even depression. Also the very nature of such | | | | community. Adherence rates can be significantly |
| institutions entails interruptions at odd hours by | | | | improved through better education, the monitoring |
| staff and other patients and a constantly changing | | | | of patients in the home, and improved medication |
| cast of care providers that further add to the | | | | management. Medication management devices |
| discomfort of the patient. | | | | help by organizing dosages, providing reminders to |
| Treating patients in the home is much less costly | | | | take pills and sending alerts to care givers when |
| and provides a familiar setting for the patient. It is | | | | dosages are not taken. Telemedicine based |
| also usually an environment that is more | | | | medication management devices significantly |
| comfortable, lowers the risk of spreading infection | | | | improve compliance rates by utilizing all three of |
| and adds to the patient's sense of control over | | | | these strategies. |
| their treatment. The difficulty is that up until now | | | | |