On-demand telemedicine as an emerging disruptive health technology: Exploring business models, service utilization, and cost effects among early adopter organizations

Abstract

To address increasing demand for convenient and accessible care, many health organizations are adopting on-demand telemedicine solutions. Viewing on-demand telemedicine as a disruptive health technology, my research uses the example of virtual urgent care (VUC), a predominant form of the on-demand service, to study emerging business models, service utilization, and cost effects among early adopter organizations. Results from Article 1 suggest early adopters are deploying Value-adding Process models that appropriately matches resources, processes, and profit formulas to support VUC value propositions; four business strategy areas were found to particularly transform the business model into action: fundamental disruptions to the model of care delivery; outsourcing support; disruptive market strategies; and new and unexpected organizational partnerships. Compared to leading alternative in-person care sites (e.g., physician offices), our results in Article 2 indicate VUC can provide lower cost services without the need for potentially duplicative follow-up care for urinary tract infection and respiratory system diagnoses. Lastly, our Article 3 results suggest low adherence to recommended follow-up services may indicate inefficiencies in current VUC care processes; however, if used when recommended, receipt of follow-up can reduce per person spending among VUC users.