Cost savings from a telemedicine model of care in northern Queensland, Australia

Abstract

To conduct a cost analysis of a telemedicine model for cancer care (teleoncology) in northern Queensland, Australia, compared with the usual model of care from the perspective of the Townsville and other participating hospital and health services. Retrospective cost-savings analysis; and a one-way sensitivity analysis performed to test the robustness of findings in net savings. Records of all patients managed by means of teleoncology at the Townsville Cancer Centre (TCC) and its six rural satellite centres in northern Queensland, Australia between 1March 2007and 30November 2011. Costs for set-up and staffing to manage the service, and savings from avoidance of travel expenses for specialist oncologists, patients and their escorts, and for aeromedical retrievals. There were 605teleoncology consultations with 147patients over 56months, at a total cost of $442276. The cost for project establishment was $36000, equipment/maintenance was $143271, and staff was $261520. The estimated travel expense avoided was $762394; this figure included the costs of travel for patients and escorts of $658760, aeromedical retrievals of $52400and travel for specialists of $47634, as well as an estimate of accommodation costs for a proportion of patients of $3600. This resulted in a net saving of $320118. Costs would have to increase by 72% to negate the savings. The teleoncology model of care at the TCC resulted in net savings, mainly due to avoidance of travel costs. Such savings could be redirected to enhancing rural resources and service capabilities. This teleoncology model is applicable to geographically distant areas requiring lengthy travel.