When Building a Virtual Health Portfolio, Behavioral Health Might Be the Perfect Place to Start | Deloitte US has been saved
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Although still in its infancy, virtual health has already begun to transform patient care by improving access to care, extending the reach of clinical management, and making it easier to gather, store and share information.1 As health plans, health systems, and physician groups develop their enterprise-wide virtual health strategies, behavioral health care is increasingly being seen as an appealing starting point for its impact on total medical expenses. While behavioral health typically requires frequent outreach and interactions with patients, it does not require significant medical equipment.
Behavioral health issues are pervasive in the US, and it remains an underserved practice area. About 20 percent of adults have a behavioral health condition, and more than half of them (56 percent) do not receive treatment due to barriers that hinder their access to care. In addition, 80 percent of youths who have been diagnosed with depression receive either insufficient or no professional care.2 The responsibility for addressing these unmet needs increasingly falls to acute care hospitals where patients land due to concomitant somatic health issues (i.e. other medical problems).3
Virtual health could address access issues
A virtual health strategy aimed at behavioral health patients could help health systems increase access to care while enhancing quality and improving the patient experience.4 More specifically, virtual visits can make behavioral health accessible to patients who live in remote areas, who are housebound, or who otherwise struggle to attend in-person treatment sessions. This technology typically results in fewer missed appointments. One leading telemedicine vendor touts a 3.5 percent no-show rate among virtual behavioral health patients. This is significantly lower than the industry average of between 30 percent and 40 percent.5 Moreover, increased access to behavioral health care—via virtual technology—could yield broader benefits for society, such as workplace absenteeism and incarceration. Those two issues, which are tightly linked to behavioral health conditions, translate to $193 billion in lost earnings.
While many health care organizations have started to explore behavioral virtual health, the complex regulatory environment has contributed to slowed adoption. A favorable shift in legislation, combined with changes to reimbursement rules, are helping to remove some of these barriers. Some of these barriers are beginning to shrink. Case in point: In 2018, state lawmakers passed 65 virtual and mobile health-related bills—up from 62 bills in 2017. Also in 2018, 49 virtual health-related regulations were finalized across 38 states.6 With this rapid pace of change, health care organizations should carefully monitor the evolving regulatory environment to identify emerging opportunities.
While implementing a comprehensive virtual health model might seem daunting, organizations can begin by launching four concrete and attainable initiatives:
A number of leading health care providers are already implementing these steps. They will likely also need to develop a focused business case to demonstrate the financial benefits of virtual health. Consider the following:
We recommend that health systems and other providers tailor their clinical and business cases to their specific organization, culture, market, and patient population, and conduct pilots in a focused behavioral health area. For example, as part of a digital wellness offering pilot, a health system might offer digital psychology consultations to help improve the management of certain patients. This low-risk, high-impact approach can help providers better understand how virtual health can help improve the behavioral care.
As the use of behavioral virtual health accelerates, health systems, hospitals, and physician groups should develop a cohesive strategy to promote sustained clinical and financial success. Such a strategy should include these simple steps:
Many organizations have already started this journey. Navigating the world of technological change and the increasingly complex behavioral health patient population is challenging, and the need for a coherent approach to behavioral virtual health approach is becoming critical.
1. Annals of Internal Medicine, Policy Recommendations to Guide the Use of Virtual health in Primary Care Settings: An American College of Physicians Position Paper, November 2015
8. American Psychiatric Association, Outcomes of 98,609 US Department of Veterans Affairs Patients Enrolled in Telemental Health Services, April 2012
Bill Fera, MD, is a principal, Deloitte Consulting LLP. Fera specializes in technology-enabled transformation to support the advancement of population health strategies. As a practicing physician, health system executive, and consultant, Fera has worked across health plans and health systems to drive toward a value-based, patient-centered model of care. He is based in Pittsburgh, PA.
Dr. Matthews is a Managing Director and physician leader at Deloitte Consulting LLP. Felix is the National Lead for our Academic Health / Research Leaders practice. He advises his clients on strategies to succeed in an increasingly competitive market. His clients include academic health systems, national health plans, and life sciences companies. He is experienced in corporate strategy, care model innovation, physician engagement strategies, clinical affiliation strategy, value-based payments, operating model design, and digital strategy, among others. He also advises his clients on strategy implementation and enabling capabilities. With over 20 years combined experience in medical practice and health care consulting, Felix brings to his clients a unique blend of clinical understanding and business insight. Felix trained in trauma surgery and accident medicine and has led research focused on clinical technology innovation at major academic centers in the US and abroad. Felix is also a published author in peer-reviewed medical journals and a columnist on virtual health.