Expanding broadband infrastructure in rural areas and increasing access to telehealth could lead to millions of dollars in healthcare cost savings, according to a report by the Southern Rural Black Women’s Initiative for Economic and Social Justice. The report shows that telehealth interventions could produce cost savings of nearly $43 million annually, with Dougherty County, Georgia, benefiting the most with potential savings of $16 million per year. The study, which covers 10 rural counties in Alabama, Georgia, and Mississippi, revealed that many households in these areas lack the internet connectivity needed for telehealth.
The Southern Rural Black Women’s Initiative for Economic and Social Justice recently released a report that highlights the potential for telehealth to save millions of dollars in rural healthcare costs. The report states that expanding broadband infrastructure and increasing access to telehealth services could result in nearly $43 million in healthcare cost savings annually.
The report examines the most common health issues in ten rural counties in Alabama, Georgia, and Mississippi, including diabetes, chronic respiratory diseases, heart disease and heart failure, and cancer. The report’s authors were able to predict the potential cost reductions for each county by calculating the cost savings that would arise from increased telehealth accessibility made possible by enhanced internet connectivity.
Dougherty County, Georgia, is projected to benefit the most from robust broadband and enhanced telehealth access, achieving potential cost savings of $16 million per year. In contrast, Baker County, Georgia, would save $350,391 a year.
Across the counties, the cost savings attained from various points along the care continuum, such as averted trips to the emergency room, could reach about $13 million. Further cost savings could include avoided transportation costs, prevented admissions and readmissions, and avoided lost productivity.
However, according to 2020 data, many households in the ten counties do not have access to internet speeds fast enough for telehealth visits. For a two-way video call, households need connections capable of delivering 100–20 megabits per second (Mbps). In two of the ten counties, no household had internet speeds of 100/20 Mbps, and in four counties, more than 50 percent of households did not have access to 100/20 Mbps connections in 2020.
The digital divide became more obvious as the COVID-19 pandemic’s usage of telemedicine increased dramatically. According to a survey conducted in 2021 by the Bipartisan Policy Center, 45% of Americans said that the lack of access to technology, particularly computers, and bandwidth, was a hindrance to telehealth. This lack of access disproportionately impacted adults over 65 and people living in rural locations.
A study published last October showed that veterans who engaged in video-based telehealth the most frequently — and in-person care the least — had the highest levels of broadband availability and the lowest area deprivation index (ADI). The researchers found that veterans with optimal broadband access participated in 16 additional video visits per 100 patients per quarter than those with inadequate broadband access.
The Federal Communications Commission (FCC) has prioritized broadband expansion in the last few years, partly to expand access to telehealth services. In May of 2021, the agency announced plans to authorize more than $640 million to support new broadband deployments in 26 states. The money comes from the Rural Digital Opportunity Fund, established in 2020 to help bring high-speed fixed broadband services to rural homes and small businesses.
The fund has an overall budget of $20.4 billion to be awarded over ten years. From its inception through May 2022, the fund provided $4.7 billion to nearly 300 carriers for new deployments in 47 states. The expansion of broadband infrastructure in rural areas and increased access to telehealth services could have significant implications for healthcare cost savings in these areas.
