The Greatest Metric – Calculating the ROI of Telehealth

Healthcare is built on a foundation of tried and true principles, yet is continually pushed forward thanks to cutting edge advances and emerging technology. C-level executives in the healthcare industry often find themselves at this intersection, looking for ways to improve without disrupting the foundation of their organization.

That’s where ROI comes in. It’s one thing to bring a new mindset to your organization. But the C-suite must find a way to take a fresh approach that also protects the bottom line. So for many organizations that have failed to adopt a telehealth strategy, it’s simply because they don’t have the understanding of what they get in return.

Of course, telehealth is not one thing—it is diverse, and offers many benefits. What works for some may not work for all, so it’s important to break down the components of these programs and see how each can offer upside to your organization. You’ll need to look at your own finances in order to get a true perspective, but by examining the benefits of telehealth, you can draw a clearer picture.

Let’s take a closer look at the ways in which telehealth provides a strong ROI to help you do the math for your organization.


Transportation is a big part of every healthcare organization. Whether that’s arranging for a patient’s transportation or the shipping of medical equipment, it’s a costly reality for all C-level executives. According to a recent study from University of California, telehealth saves time, travel costs, and even helps contribute to better air quality, by taking logistics out of the hands of providers. Over the course of the school’s 20-year study, telemedicine visits saved patients 9 years of travel time, 5 million miles and $3 million in costs.

Readmission rates and patient outcomes:

Chronic conditions are a big deal for healthcare providers today. Managing chronic illnesses with telehealth can help patients get greater control over their conditions and reduce readmission rates. According to a Veterans Health Administration study of cardiac patients, the introduction of telehealth decreased readmissions by 51 percent for heart failure and 44 percent for other illnesses.

Cost considerations:

In a Geisinger Health Plan telehealth study, respondents cited that they achieved 11 percent cost savings after implementing a telehealth solution. All in all, this accounted for a $3.30 return for every dollar spent on implementation.

ROI reporting:

Of course, managing all these analytics is a full-time job in and of itself. Working with a telehealth services provider, you’ll gain the benefit of measured and managed data collection which is then transformed into actionable business intelligence in the form of ROI reporting. This baseline will help you continue to accurately assess how to grow your telehealth services moving forward.

If you’re ready to show your C-suite that telehealth can provide the quality of care they seek with a robust return on investment, get started by checking out Trapollo today.