The Integrative Stream

Health IT Microeconomics

More insurers are reimbursing doctors for online care. Cost issues have kept small physician offices from adopting sophisticated health information technology. And that’s no surprise: clinical systems are complex, and small medical practices are under increasing financial pressure. That means seeing more patients more efficiently and-surprise!-electronic medical records and related tools don’t always mean a quicker visit. Often a better visit, but not a quicker one.

Insurance companies control the final line of incentives for doctors and hospitals to invest in process improvement. If doctors can get paid for an online visit, even if only enough to cover costs, they’ll do a lot more. And since an online visit is less costly for all concerned, everybody wins. Patients win most of all, especially considering the noneconomic costs of going to see your physician. Those costs are substantial – travel time, lost work, gas.