Impact of Teleradiology on Healthcare Costs

I recently spoke at a healthcare IT conference organized by the dedicated team at the Sri Sathya Sai Institute of Higher Medical Sciences in Whitefield, where I had the privilege to work and head the department for my first year after I returned to India.

During my talk, I dwelt on the subject of teleradiology as a tool to reduce healthcare costs.

In essence, the ultilization of teleradiology is inversely proportional to Healthcare costs. The primary reason for this is related to its role in more efficient manpower utilization. This is effected in 3 ways. First, by improving radiologist efficiency by allowing the images to be brought to the radiologist, decreasing radiologist commute time, and last but most important, by tailoring radiologist workflow to allow for maximum radiologist productivity. This is where technology makes its greatest impact. By converting night to day in the emergency “ nighthawk” model, radiologist productivity is greatly enhanced. And finally in developing countries, a large amount of the ancillary cost of healthcare is occasioned by the need to bring the patient to the city from the village simply for the purpose of obtaining a diagnostic scan, typically accompanied by escorting relatives. With increasing deployment of imaging technologies such as digital xray and sonography in smaller towns and rural health centers, the access to high quality diagnosis as afforded by teleradiology obviates this need.

A second benefit relates to the fact that earlier diagnosis results in earlier treatment, which in turn leads to improved patient outcome, which in turn over time decreases costs of healthcare.

Finally in keeping with Demings Law, improved quality (as results from teleradiology) results in decreased cost.

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