A Review of the Costs of Telepsychiatry

OBJECTIVES: The issue of whether telepsychiatry is worth the cost or whether it pays for itself is controversial. This study investigated this question by reviewing telepsychiatry literature that focused on cost. METHODS: Approximately 380 studies on telepsychiatry published from 1956 through 2002 were identified through MEDLINE, PsycINFO, and cross-referenced bibliographies. Of these, 12 studies with samples of more than ten persons or programs focused specifically on the cost of telepsychiatry. RESULTS: The methods of examining cost used in the 12 studies were cost-feasibility, cost surveys, direct comparison of costs of telepsychiatry and in-person psychiatry, and cost analysis. It was concluded that in seven of the studies reported, telepsychiatry was worth the cost. One study reported that telepsychiatry was not financially viable. Three studies of cost-effectiveness reported the break-even number of consultations, the number that make telepsychiatry comparable in cost to in-person psychiatry. One review concluded that the lack of a clear business plan contributed to the difficulty of determining whether any of the programs was cost-effective. CONCLUSIONS: Telepsychiatry can be cost-effective in selected settings and can be financially viable if used beyond the break-even point in relation to the cost of providing in-person psychiatric services. Whether governmental or private health agencies value telepsychiatry enough to assume its cost is a question that remains to be answered.