Final
Telemedicine in Arizona

HEALTH CARE TASK FORCE

Votes:
Action Taken:
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10:51 AM -- Telemedicine in Arizona

Mr. Kevin Pitzer, Vice President of Operations with Pediatrix Medical Group discussed the Pediatrix outreach program in cooperation with the Arizona Telemedicine Program and distributed a handout of his presentation (Attachment D). Mr. Pitzer explained that Pediatrix is a nationwide physician organization focusing on high risk obstetrics.

Mr. Pitzer explained that the Arizona Telemedicine Program started in 1979, and in 1996, the Arizona legislature appropriated $1.2 million to fund the start-up of the Arizona Rural Telemedicine Network. Today, the program has over 160 sites used by over 50 health care organizations, and it has served over 150,000 patients. Mr. Pitzer explained that ongoing funding is from state, federal, and private sources. He stated that the State of Arizona has saved millions of dollars annually through reduced or avoided emergency transports, behavioral medicine admissions, patient travel and per diem, and inpatient admissions. In addition, telemedicine allows for more intensive follow-up care resulting in improved patient compliance with disease management. Mr. Pitzer noted that Arizona's Department of Corrections has used over 8,000 telemedicine visits since it began, saving over $1 million in travel and admissions costs.

Mr. Pitzer described Pediatrix's Arizona telemedicine experience with tele-ultrasounds. In their system, the ultrasound is performed by a local technologist, and the image is stored at the local hospital. Then the image is transmitted to a physician of the Arizona Telemedicine Network where the still images are read by a perinatologist. Afterward, the report is printed and faxed back to the remote facility. This is known as "store-forward" technology. Mr. Pitzer stated that the start-up cost for this technology ranges from $10,000 to $25,000 depending on the system capacity. He said that the charge for service is comparable to non-telemedicine service, with the physician billing the professional component, and the hospital billing the technical component.

Mr. Pitzer explained that in Arizona telemedicine services are covered by nearly all commercial plans and the state Medicaid program. The program improves access with comparable quality and cost. Mr. Pitzer stressed that the program facilitates pro-active management of high-risk OB patients, reducing incidents of premature delivery and related complications and costs.
Mr. Pitzer concluded his remarks and provided some additional resources for the committee as printed in Attachment D.