Telemedicine Could Save $197 Billion, But Only With 'Smart Networks'

Broadband-enabled improvements to health care could save $197 billion over 25 years, but only if carriers had the incentives and freedom to deploy so-called "smart networks," according a study financed by AT&T. Widespread broadband deployment would be necessary to achieve these savings, according to the study, report author Robert Litan, vice president of research and policy at the Kauffman Foundation. The 63-page report, "Vital Signs Via Broadband: Remote Health Monitoring Transmits Savings, Enhances Lives," was presented at a press briefing by Better Health Care Together. The group seeks comprehensive changes in the health care system. Senior citizens generally lag in technology adoption. But because they are likely to be the greatest beneficiaries of widespread broadband-enabled health monitoring, it may be necessary for the government to incentive broadband adoption if it wants to realize those savings, said Litan. Among the incentives that should be deployed, said Litan, are investments in Internet education, rural broadband infrastructure and "telecommunications policies that allow broadband providers to experiment with different offering that attract marginal users without sacrificing profits on other users," according to a summary of recommendations. In his remarks, Litan said: "We need not only a take-up of broadband, but a take-up of smart broadband, or smart networks."