Telehealth uses additional channels beyond real-time video interactions to  provide access to health assessment, diagnosis, intervention, consultation, supervision and information across distance. Web Page: http://www.pwc.com/us/hri

1. Telehealth Overview
March, 2015
PwC Health
Research Institute
PwC Health Research Institute

2. What is telehealth?
PwC Health Research Institute Slide 2
Telemedicine
Telemedicine leverages two-
way, real time interactive
communication between the
patient and provider at a
distant site
Telehealth uses additional channels
beyond real-time video interactions to
provide access to health assessment,
diagnosis, intervention, consultation,
supervision and information across
distance
Telehealth
Real-time video
interactions
Remote patient
monitoring
devices
Telephone
Facsimile
E-mail
Source: CMS

3. Recent legislative &
regulatory action may
be the catalyst to spur
the fledgling
telehealth market
PwC Health Research Institute
Slide 3
Recent developments
SD, UT, WY pass the
Interstate Medical
Licensure Compact
•New York becomes the
latest state to mandate
telehealth payment parity
•21st Century Cures Act
discussion draft released
FY 2015 budget released,
with $23 million increase
for telehealth for the
Veterans Administration
March 2014
TELE-MED Act of 2013
introduced
September 2013
•Medicare Telehealth Parity
Act introduced
•Telehealth Enhancement
Act of 2014 introduced
July 2014
CMS expands Medicare
telehelath reimbursement
October 2014
USDA awards $8.6
million in telehealth
grants
November 2014
January 2015
February 2015

4. Providers harness telehealth
PwC Health Research Institute Slide 4
Highlights Remaining Hurdles
• Licensing
• Reimbursement
• Operational considerations:
• Business model
• Workflow integration
• Data management
• Data sharing
• Protocol development
Telehealth start-
ups attract
private sector
funding with
promise of
growth
37% of doctors
surveyed said
1/3
of visits could be
done virtually
Telehealth consults:
• Resolve shortages
• Improve outcomes
• Reduce costs
Retailers partner with:
• Kiosk providers
• Telehealth providers
Hospitals
New Entrants
Start-ups
Physicians

5. Consumers recognize value…
PwC Health Research Institute Slide 5
…but limitations still
exist:
• Leveraging relationships
• Service availability
• Privacy & security
concerns
48% of consumers surveyed by HRI indicated they would be willing to pay for an
online service or app that could diagnose and prescribe based on symptoms
described by the user
Consumer
Value
Drivers
Cost
AccessConvenience
Source: HRI 2015 Consumer Survey

6. Reflects a sample of payer/telehealth provider partnerships
Payers promote telemedicine to increase
access and drive cost savings
But must address gaps to increase consumer demand
Payer Telehealth Provider
Aetna RelayHealth (2006)
Teladoc (2011)
Cigna RelayHealth (2007)
MDLIVE (2013)
UnitedHealth Group NowClinic* (2010)
WellPoint Livehealth Online** (2014)
PwC Health Research Institute Slide 6
*NowClinic is a subsidiary of UnitedHealth Group, and is powered by AmericanWell
** Livehealth Online is a subsidiary of WellPoint and is powered by American Well
Payers maintain out-of-pocket costs with
telehealth service offerings, but decrease
medical cost
Challenges
• Network integration
• Data integration
• Utilization
management
Early Adoption

7. Pharma helps deliver virtual care
PwC Health Research Institute Slide 7
Adherence
Efficacy
Smart pills with embedded microchips
monitor medication adherence
Patches administer
medication and monitor
vitals / biometrics Diagnostics
Battery-powered camera pills
send images to providers
Questions about privacy, data sharing and side effects
continue to be raised.

8. Employers see incentives
Implications
• 48% of employers will make telehealth services available to employees this year2
• Employers should focus on enhancing employee awareness of the benefit and
protocols for effective use
PwC Health Research Institute Slide 8
1 Source: Alliance for Connected Care
2 Source: National Business Group on Health survey of 136 employers
Telehealth
benefits
employers
Financial Incentives:
• Savings of about $126
per telehealth visit1
• Fewer follow-up visits
Productivity Gains:
• Evening/weekend
appointment options
• Expanded access to
care

9. For more information
www.pwc.com/hri
Ceci Connolly
Managing Director
Health Research Institute
(202) 312-7910
ceci.connolly@us.pwc.com
Slide 9
Kelly Barnes
Partner, Health Industries Leader
US Health Industries
(214) 754 5172
kelly.a.barnes@us.pwc.com
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