5 Ways Telemedicine Can Cut Costs Without Cutting Corners in Workers’ Comp

From making it easy for workers in rural areas to see a doctor to ensuring injured workers don't skip appointments, here's how telemedicine is improving care in workers' comp.
By: | October 10, 2019

The use of telemedicine is becoming more common than ever. A quick browse through a general care physician’s online portal shows options to text medical questions to a nurse, schedule a video appointment with a doctor and request a virtual exam. 



Nationally, the use of telemedicine increased with an average annual compound growth rate of 261 percent between 2015 and 2017, according to the Washington Post. 

While telemedicine is becoming increasingly common, workers’ compensation programs have been slower to adopt these new technologies. 

Overall, workers’ compensation is seeing an increase in the area of telemedicine. In 2015, 56% of Kaiser Permenente’s interactions between physicians and members were virtual, according to NCCI data. A lack of guidance and differences in state regulations, however, can make telemedicine programs difficult to implement in workers’ compensation.    

“I think telemedicine is a game changer,” Ann Schnure, vice president at Concentra Telemedicine, told Risk & Insurance®. “But you can’t [instantly] turn the switch on. You have to really think through what you are doing and what state you are in.”

“You are making a risk decision going forward in a state that says ‘we are going to make regulations, we just haven’t written them yet,’ she added. 

Schnure will be speaking on telemedicine at the 2019 National Workers’ Compensation and Disability Conference® & Expo. Her session, “Leveraging Modern Telemedicine to Enhance Employer Workers’ Compensation Programs” will examine how telemedicine can streamline the workers’ compensation process, improve health outcomes and reduce costs.  

Despite the regulatory obstacles that telemedicine may face, it’s a growing category of health care that can save time and money while still providing quality care for injured workers. Here are five ways telemedicine can enhance workers’ compensation care while helping to contain costs. 

1) Injured Workers Don’t Have to Take Time Off Work to See a Doctor  

For an injured worker facing a lost time claim, taking more time off after they’ve returned to work for additional medical appointments can be the last thing they want to do. 

Since appointments often coincide with work hours, employees often start skipping their doctors appointments once they start feeling better to avoid taking time off work.  

“It’s the number one reason why patients stop following up,” Schnure said.  “When they start feeling better, they will skip appointments.”

When employees skip appointments, claims can run long past when the employee feels like they have healed. 

If an employee’s work restrictions expire, for example, and they haven’t been cleared by a doctor, it’s up to employers to decide if they’re ready to return to work. 

Employers aren’t doctors, however, and they may think that an employee who says that they feel better can come back full duty before the healing process is complete. 

This is where telemedicine can step up by eliminating the need for injured workers who are on the up and up to continue physically attending their appointments. Instead, video calls can allow employees to check in with their doctors from the comfort of their homes or offices.   

2) Getting Employees the Behavioral Health Care They Need

While the stigma associated with mental health conditions is decreasing, fear of being treated differently can still dissuade workers from seeking the behavioral health care they need.


Technology and telemedicine platforms can step in to help workers get the behavioral care they need. Patients may feel more comfortable texting a therapist or using coaching-centered text services to treat their behavioral health conditions. 

Video calls can also help bring treatment to patients who have difficulty leaving their homes to due to severe depression or anxiety. 

“The interesting reality on [televideo services] is that utilization remains woefully poor both on the medical side and on behavioral health,” said Dr. Alisa Trugerman, a principal at Mercer. 

“Probably the place where we see the most change is often in the chat- and text-based approaches and they’re being used for both coaching and therapy.”

3) Virtual Doctors Help Combat the Physician Shortage

As we creep closer to 2025, the physician shortage will begin to feel like a very real concern. 

The Association of American Medical Colleges reports that by 2032 the U.S. will face a shortage of nearly 122,000 physicians

For workers’ compensation, the physician shortage could be particularly challenging as employers and insurers may have a difficult time keeping claims durations short if there are not enough doctors to see patients. 

Telemedicine could ease the burden of some of the problems posed by the physician shortage by allowing doctors to see more patients in a shorter period of time. It can also allow injured workers to access high-level physicians and specialists who they may normally be unable to get an appointment with. 

4) Claims and Medical Management is Just a Phone (or Video) Call Away

Telemedicine isn’t just a way to connect doctors with patients, however. It can also be used to connect injured workers with nurse case managers and other people who participate in the claims management process. 

In a survey from 2017, 84% of respondents thought that telemedicine would improve automation and efficiency in claims and medical management. 

“I think a whole bunch of the case management piece can be done telephonically. Certainly, it’s much less costly for the carriers, the TPAs, employers,” said Bonnie Dayhaw, vice president of clinical services at Ascential Care Partners.

Telephonic nurse case managers can also assist patients with typical or smaller injuries that wouldn’t necessarily require a case manager. And speaking with a case manager can help improve outcomes.  

Starbucks, a 2018 Teddy Award winner, uses telephonic nurse case managers to help connect injured workers with care providers and answer questions about their injuries. Between 2015 and 2018, claims with nurse involvement went from 51 % release-to-work and deemed maximally medically improved (MMI) to 86 % release-to-work and deemed MMI.  

5) Helping Rural  and Elderly Workers Get into The Doctor’s Office  

For some patients, travelling to see a doctor can be difficult if not almost impossible to achieve without incurring huge travel bills and for others travelling can put its own strain on their health. 


Rural workers and elderly workers are two groups for whom travelling to see a doctor could pose financial or physical challenges. They stand to benefit from telemedicine services that make health care both cheaper and easier to attain for workers’ compensation payers. 

“It’s not just the cost of transportation but the costs of management around that transportation,” Schnure said. 

“If you have someone who needs transportation on every visit, and say it’s a 20-mile drive, around 50 cents per mile — that’s only about $10. But times that by five for multiple appointments, you’re at $50. Now say you have a thousand cases like that; it starts to add up.”

Cost of care isn’t the only way telemedicine can benefit these groups, however. For rural patients, hospitals and specialized physicians may be several towns over, making care difficult to access. With telemedicine, these patients can speak to a doctor on the phone.

For older workers, a group that is becoming increasingly common in the workforce, travelling long distances for care can be physically taxing and could slow their recovery efforts. 

The ability to video chat or call a doctor for some appointments could allow them to get the rest that is crucial for recovery. &

About the National Workers’ Compensation and Disability Conference® & Expo:

As the largest National Workers’ Comp and Disability Conference for more than 25 years, NWCDC offers endless opportunities that will propel your workers’ comp and disability management programs forward.  With the biggest Expo in the industry, you’ll be able to touch, compare and contrast the newest solutions from leading vendors in every category, and gain knowledge on-the-go at in-depth sponsored sessions on the show floor. Additionally, NWCDC offers valuable networking opportunities so you can make important contacts and share strategies with your peers.

You can also customize your learning experience with breakout sessions in six distinct program tracks: Claims Management, Medical Management, Program Management, Disability Management, Legal/Regulatory, and Technology. Plus, you’ll hear from Risk & Insurance’s Teddy Award winners for excellence in lowering workers’ comp risk.

Learn more about NWCDC and special savings for Risk & Insurance® subscribers here.

Courtney DuChene is a staff writer at Risk & Insurance. She can be reached at [email protected]

More from Risk & Insurance

More from Risk & Insurance

Risk Scenario

The Betrayal of Elizabeth

In this Risk Scenario, Risk & Insurance explores what might happen in the event a telemedicine or similar home health visit violates a patient's privacy. What consequences await when a young girl's tele visit goes viral?
By: | October 12, 2020
Risk Scenarios are created by Risk & Insurance editors along with leading industry partners. The hypothetical, yet realistic stories, showcase emerging risks that can result in significant losses if not properly addressed.

Disclaimer: The events depicted in this scenario are fictitious. Any similarity to any corporation or person, living or dead, is merely coincidental.


Elizabeth Cunningham seemingly had it all. The daughter of two well-established professionals — her father was a personal injury attorney, her mother, also an attorney, had her own estate planning practice — she grew up in a house in Maryland horse country with lots of love and the financial security that can iron out at least some of life’s problems.

Tall, good-looking and talented, Elizabeth was moving through her junior year at the University of Pennsylvania in seemingly good order; check that, very good order, by all appearances.

Her pre-med grades were outstanding. Despite the heavy load of her course work, she’d even managed to place in the Penn Relays in the mile, in the spring of her sophomore season, in May of 2019.

But the winter of 2019/2020 brought challenges, challenges that festered below the surface, known only to her and a couple of close friends.

First came betrayal at the hands of her boyfriend, Tom, right around Thanksgiving. She saw a message pop up on his phone from Rebecca, a young woman she thought was their friend. As it turned out, Rebecca and Tom had been intimate together, and both seemed game to do it again.

Reeling, her holiday mood shattered and her relationship with Tom fractured, Elizabeth was beset by deep feelings of anxiety. As the winter gray became more dense and forbidding, the anxiety grew.

Fed up, she broke up with Tom just after Christmas. What looked like a promising start to 2020 now didn’t feel as joyous.

Right around the end of the year, she plucked a copy of her father’s New York Times from the table in his study. A budding physician, her eyes were drawn to a piece about an outbreak of a highly contagious virus in Wuhan, China.

“Sounds dreadful,” she said to herself.

Within three months, anxiety gnawed at Elizabeth daily as she sat cloistered in her family’s house in Bel Air, Maryland.

It didn’t help matters that her brother, Billy, a high school senior and a constant thorn in her side, was cloistered with her.

She felt like she was suffocating.

One night in early May, feeling shutdown and unable to bring herself to tell her parents about her true condition, Elizabeth reached out to her family physician for help.

Dr. Johnson had been Elizabeth’s doctor for a number of years and, being from a small town, Elizabeth had grown up and gone to school with Dr. Johnson’s son Evan. In fact, back in high school, Evan had asked Elizabeth out once. Not interested, Elizabeth had declined Evan’s advances and did not give this a second thought.

Dr. Johnson’s practice had recently been acquired by a Virginia-based hospital system, Medwell, so when Elizabeth called the office, she was first patched through to Medwell’s receptionist/scheduling service. Within 30 minutes, an online Telehealth consult had been arranged for her to speak directly with Dr. Johnson.

Due to the pandemic, Dr. Johnson called from the office in her home. The doctor was kind. She was practiced.

“So can you tell me what’s going on?” she said.

Elizabeth took a deep breath. She tried to fight what was happening. But she could not. Tears started streaming down her face.

“It’s just… It’s just…” she managed to stammer.

The doctor waited patiently. “It’s okay,” she said. “Just take your time.”

Elizabeth took a deep breath. “It’s like I can’t manage my own mind anymore. It’s nonstop. It won’t turn off…”

More tears streamed down her face.

Patiently, with compassion, the doctor walked Elizabeth through what she might be experiencing. The doctor recommended a follow-up with Medwell’s psychology department.

“Okay,” Elizabeth said, some semblance of relief passing through her.

Unbeknownst to Dr. Johnson, her office door had not been completely closed. During the telehealth call, Evan stopped by his mother’s office to ask her a question. Before knocking he overheard Elizabeth talking and decided to listen in.


As Elizabeth was finding the courage to open up to Dr. Johnson about her psychological condition, Evan was recording her with his smartphone through a crack in the doorway.

Spurred by who knows what — his attraction to her, his irritation at being rejected, the idleness of the COVID quarantine — it really didn’t matter. Evan posted his recording of Elizabeth to his Instagram feed.

#CantManageMyMind, #CrazyGirl, #HelpMeDoctorImBeautiful is just some of what followed.

Elizabeth and Evan were both well-liked and very well connected on social media. The posts, shares and reactions that followed Evan’s digital betrayal numbered in the hundreds. Each one of them a knife into the already troubled soul of Elizabeth Cunningham.

By noon of the following day, her well-connected father unleashed the dogs of war.

Rand Davis, the risk manager for the Medwell Health System, a 15-hospital health care company based in Alexandria, Virginia was just finishing lunch when he got a call from the company’s general counsel, Emily Vittorio.

“Yes?” Rand said. He and Emily were accustomed to being quick and blunt with each other. They didn’t have time for much else.

“I just picked up a notice of intent to sue from a personal injury attorney in Bel Air, Maryland. It seems his daughter was in a teleconference with one of our docs. She was experiencing anxiety, the daughter that is. The doctor’s son recorded the call and posted it to social media.”

“Great. Thanks, kid,” Rand said.

“His attorneys want to initiate a discovery dialogue on Monday,” Emily said.

It was Thursday. Rand’s dreams of slipping onto his fishing boat over the weekend evaporated, just like that. He closed his eyes and tilted his face up to the heavens.

Wasn’t it enough that he and the other members of the C-suite fought tooth and nail to keep thousands of people safe and treat them during the COVID-crisis?

He’d watched the explosion in the use of telemedicine with a mixture of awe and alarm. On the one hand, they were saving lives. On the other hand, they were opening themselves to exposures under the Health Insurance Portability and Accountability Act. He just knew it.

He and his colleagues tried to do the right thing. But what they were doing, overwhelmed as they were, was simply not enough.


Within the space of two weeks, the torture suffered by Elizabeth Cunningham grew into a class action against Medwell.

In addition to the violation of her privacy, the investigation by Mr. Cunningham’s attorneys revealed the following:

Medwell’s telemedicine component, as needed and well-intended as it was, lacked a viable informed consent protocol.

The consultation with Elizabeth, and as it turned out, hundreds of additional patients in Maryland, Pennsylvania and West Virginia, violated telemedicine regulations in all three states.

Numerous practitioners in the system took part in teleconferences with patients in states in which they were not credentialed to provide that service.

Even if Evan hadn’t cracked open Dr. Johnson’s door and surreptitiously recorded her conversation with Elizabeth, the Medwell telehealth system was found to be insecure — yet another violation of HIPAA.

The amount sought in the class action was $100 million. In an era of social inflation, with jury awards that were once unthinkable becoming commonplace, Medwell was standing squarely in the crosshairs of a liability jury decision that was going to devour entire towers of its insurance program.

Adding another layer of certain pain to the equation was that the case would be heard in Baltimore, a jurisdiction where plaintiffs’ attorneys tended to dance out of courtrooms with millions in their pockets.

That fall, Rand sat with his broker on a call with a specialty insurer, talking about renewals of the group’s general liability, cyber and professional liability programs.

“Yeah, we were kind of hoping to keep the increases on all three at less than 25%,” the broker said breezily.

There was a long silence from the underwriters at the other end of the phone.

“To be honest, we’re borderline about being able to offer you any cover at all,” one of the lead underwriters said.

Rand just sat silently and waited for another shoe to drop.

“Well, what can you do?” the broker said, with hope draining from his voice.

The conversation that followed would propel Rand and his broker on the difficult, next to impossible path of trying to find coverage, with general liability underwriters in full retreat, professional liability underwriters looking for double digit increases and cyber underwriters asking very pointed questions about the health system’s risk management.

Elizabeth, a strong young woman with a good support network, would eventually recover from the damage done to her.

Medwell’s relationships with the insurance markets looked like it almost never would. &


Risk & Insurance® partnered with Allied World to produce this scenario. Below are Allied World’s recommendations on how to prevent the losses presented in the scenario. This perspective is not an editorial opinion of Risk & Insurance.®.

The use of telehealth has exponentially accelerated with the advent of COVID-19. Few health care providers were prepared for this shift. Health care organizations should confirm that Telehealth coverage is included in their Medical Professional, General Liability and Cyber policies, and to what extent. Concerns around Telehealth focus on HIPAA compliance and the internal policies in place to meet the federal and state standards and best practices for privacy and quality care. As states open businesses and the crisis abates, will pre-COVID-19 telehealth policies and regulations once again be enforced?

Risk Management Considerations:

The same ethical and standard of care issues around caring for patients face-to-face in an office apply in telehealth settings:

  • maintain a strong patient-physician relationship;
  • protect patient privacy; and
  • seek the best possible outcome.

Telehealth can create challenges around “informed consent.” It is critical to inform patients of the potential benefits and risks of telehealth (including privacy and security), ensure the use of HIPAA compliant platforms and make sure there is a good level of understanding of the scope of telehealth. Providers must be aware of the regulatory and licensure requirements in the state where the patient is located, as well as those of the state in which they are licensed.

A professional and private environment should be maintained for patient privacy and confidentiality. Best practices must be in place and followed. Medical professionals who engage in telehealth should be fully trained in operating the technology. Patients must also be instructed in its use and provided instructions on what to do if there are technical difficulties.

This case study is for illustrative purposes only and is not intended to be a summary of, and does not in any way vary, the actual coverage available to a policyholder under any insurance policy. Actual coverage for specific claims will be determined by the actual policy language and will be based on the specific facts and circumstances of the claim. Consult your insurance advisors or legal counsel for guidance on your organization’s policies and coverage matters and other issues specific to your organization.

This information is provided as a general overview for agents and brokers. Coverage will be underwritten by an insurance subsidiary of Allied World Assurance Company Holdings, Ltd, a Fairfax company (“Allied World”). Such subsidiaries currently carry an A.M. Best rating of “A” (Excellent), a Moody’s rating of “A3” (Good) and a Standard & Poor’s rating of “A-” (Strong), as applicable. Coverage is offered only through licensed agents and brokers. Actual coverage may vary and is subject to policy language as issued. Coverage may not be available in all jurisdictions. Risk management services are provided or arranged through AWAC Services Company, a member company of Allied World. © 2020 Allied World Assurance Company Holdings, Ltd. All rights reserved.

Dan Reynolds is editor-in-chief of Risk & Insurance. He can be reached at [email protected]