title: Cost savings from a telemedicine model of care in northern Queensland, Australia.
abstract: OBJECTIVE
  To conduct a cost analysis of a telemedicine model for cancer care (teleoncology) in northern Queensland, Australia, compared with the usual model of care from the perspective of the Townsville and other participating hospital and health services.
  
  
  METHODS
  Retrospective cost-savings analysis; and a one-way sensitivity analysis performed to test the robustness of findings in net savings.
  
  
  METHODS
  Records of all patients managed by means of teleoncology at the Townsville Cancer Centre (TCC) and its six rural satellite centres in northern Queensland, Australia between 1 March 2007 and 30 November 2011.
  
  
  METHODS
  Costs for set-up and staffing to manage the service, and savings from avoidance of travel expenses for specialist oncologists, patients and their escorts, and for aeromedical retrievals.
  
  
  RESULTS
  There were 605 teleoncology consultations with 147 patients over 56 months, at a total cost of $442 276. The cost for project establishment was $36 000, equipment/maintenance was $143 271, and staff was $261 520. The estimated travel expense avoided was $762 394; this figure included the costs of travel for patients and escorts of $658 760, aeromedical retrievals of $52 400 and travel for specialists of $47 634, as well as an estimate of accommodation costs for a proportion of patients of $3600. This resulted in a net saving of $320 118. Costs would have to increase by 72% to negate the savings.
  
  
  CONCLUSIONS
  The teleoncology model of care at the TCC resulted in net savings, mainly due to avoidance of travel costs. Such savings could be redirected to enhancing rural resources and service capabilities. This teleoncology model is applicable to geographically distant areas requiring lengthy travel.
authors.affiliation: Department of Medical Oncology, Townsville Hospital, Townsville, QLD, Australia. sabe_sabesan@health.qld.gov.au.
authors.forename: Darshit A
authors.initials: DA
authors.lastname: Thaker
authors.forename: Richard
authors.initials: R
authors.lastname: Monypenny
authors.forename: Ian
authors.initials: I
authors.lastname: Olver
authors.forename: Sabe
authors.initials: S
authors.lastname: Sabesan
mesh_terms: D001315:Australia; D017046:Cost Savings; D003365:Costs and Cost Analysis; D004864:Equipment and Supplies / Q000191:economics; D005260:Female; D006801:Humans; D008297:Male; D008495:Medical Oncology / Q000191:economics; D010561:Personnel Staffing and Scheduling / Q000191:economics; D012189:Retrospective Studies; D019035:Rural Health Services / Q000191:economics; D017216:Telemedicine / Q000191:economics*