Reduce readmissions with telemedicine for LTC- How much does an unneeded re-hospitalization really cost?

A lot more than iDocsWeb!

Did you know hospitals are penalized $10,000 for a single readmission?

What about the cost to LTC operators?

Protect Your Census
Although reimbursement rates vary by location, let’s break down the cost of a typical hospital readmission. If Medicare pays approximately $500 per short stay patient, and a typical readmission removes the resident for an average of 8 days, that’s $4000 in lost revenue that will be generated elsewhere. But that’s not the only cost..

Transportation and Added Labor
LTC operators know that transportation is not always reimbursable. A typical transport to a hospital/ER will likely result in an out of pocket cost of $950-$1250 (non-emergency/emergency). Add the labor costs associated with the transfer and you easily surpass $1000 per readmission.

Medicare Penalties
Effective 2018, institutions may incur up to a 3% penalty for surpassing the readmission percentage thresholds. That means up to 3% of your Medicare payments will be withheld if you do not fall within the readmission rate guidelines.

“If you prevent a single unneeded hospitalization per month, your ROI surpasses the cost of iDocsWeb-
Even including After-Hours MD Coverage!”

ACO/MCO Relationships
While there might not be a monetary penalty from your ACO/MCO, readmissions are not going unnoticed. ACO/MCO’s continue to place stricter guidelines on their associated LTC facilities meaning an increase in readmissions will result in a decrease to your patient referrals.

The Bottom Line
Readmissions are expensive, a lot more expensive than iDocsWeb. In fact, if you prevent a single unneeded hospitalization per month, your ROI surpasses the cost of iDocsWeb- Even including After-Hours MD Coverage!

Written by blogs_iDocs

The iDocsWeb blog team is comprised of practicing physicians, LTC consultants, and medical writers.