Mayo’s video visits up 5000 percent but how does that impact Rochester’s local economy?

The Post Bulletin reports

“We’re currently touching, caring for more patients on a given day now than they were pre-pandemic when you add in telemedicine activities, plus the patients coming on site for care here,” said Dr. Steve Ommen, a cardiologist and the medical director for experience products for Mayo Clinic’s Center for Digital Health.

Video visits skyrocketed more than 5,000% from 278 visits in February 2020 to 16,532 in December at Mayo Clinic-Rochester. Phone telemedicine visits also soared from 169 to 7,590 in the same timeframe, peaking at 24,670 visits in April 2020.

A looming question remains: How will this affect Rochester’s economy when much of the downtown and the largest private-public economic partnership in state history has been built with the presumption that many of Mayo’s patients will be visiting the city in person?

Sounds like the local economic developers aren’t too worried…

Holly Masek, executive director of the Rochester Downtown Alliance, said her team hasn’t specifically studied how telehealth use could affect the downtown. The general consensus is that there are enough patients traveling to Rochester for extended stays and more specialized care that businesses will not see a significant decrease in income because of telemedicine use.

There are pluses and minuses with remote working too…

Fewer Mayo Clinic employees are working downtown than before the pandemic, though telemedicine certainly can’t be pinpointed as the sole cause of this shift.

“Approximately 2,900 staff who were previously based in downtown Rochester will now work off campus a majority of the time,” Mayo Clinic spokeswoman Ginger Plumbo said to the Post Bulletin’s Jeff Kiger in early July. “This number evolved as Mayo Clinic continued to assess the workforce beyond the initial group of non-clinical administrative staff.”

The number went up from the 1,500 figure Mayo Clinic reported in October 2020.

It looks like the Mayo, more than the city, will need to look at the impact…

Preliminary studies from other healthcare institutions across the country provide a picture into how telemedicine use affects revenue. An April 2021 study by the Department of Orthopaedics at the University of Pennsylvania found that the adoption of telemedicine services resulted in just a -.8% hit to the department’s revenue.

“Given that the nation’s health systems are operating on thin margins amid rising payment and cost pressures, the findings of our study underscore the need for thoughtful examination to ensure telemedicine is used and supported effectively and sustainably,” read the study.

Legislative changes makes it easier to offer and afford telehealth…

Legislation passed in June 2021 as part of the Health and Human Services bill made these changes part of law, not just part of the emergency powers declaration.

For Mayo Clinic campuses in Arizona and Florida, the number of patients receiving care via telemedicine may differ. Arizona recently passed similar protections to Minnesota, while Florida rolled back telehealth regulations passed during the pandemic.

Even if Mayo Clinic’s bottom line isn’t greatly affected by telemedicine use, the patient’s pocketbook may be.

A 2014 study found that the average estimated cost of a telehealth visit is $40 to $50 compared to average cost of $136 to $175 for in-person acute care.

Minnesota legislation regulates the cost of telemedicine services to not surpass what the in-person cost would be.

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