PALO ALTO, CA – The recent success of telehealth programs in the Department of Veterans Affairs and the Centers for Medicare and Medicaid Services show a boon for the technology, especially in treating patients with chronic care conditions.

Palo Alto, Calif.-based Health Hero Network is the developer of the Health Buddy system, whichserves as the interface between patients and care providers and facilitates patient education and monitoring of chronic conditions. The system includes monitoring technologies, clinical information databases, Internet-enabled decision support tools, health management programs and content development tools.

Earlier this month CMS granted a three-year extension to Health Hero Network's participation in its Care Management for High Cost Beneficiaries Demonstration (CMHCB) project because it demonstrated success in helping to manage care for high cost patients.

"The programs in the demonstration have had a positive impact on selected high cost Medicare beneficiaries and have met and/or exceeded the savings target required in the demonstration agreement," CMS officials said. "By extending the demonstration for another three years and frequently evaluating their financial status, each of the programs would have the opportunity to continue to impact their populations, maximize savings and assist CMS in determining the replicability of the programs."

In a study published in The Journal of Telemedicine and e-Health, VA clinicians revealed the outcomes of their first multi-year evaluation of the agency's Care Coordination Home Telehealth Program. Health Hero Network has been one of the telehealth technology providers to the program.

Researchers reported that telehealth initiatives successfully reduced hospitalizations by up to 20 percent and improved the overall health conditions of patients who used the systems.

VA researchers praised telehealth systems for being able to provide daily contact with a patient base dispersed over wide geographies and for the behavioral improvements seen in patients who were presented with daily assessments through telehealth devices.

The study also cited the program's modest cost of $1,600 per enrolled patient per year. The VA plans to expand the deployment of its telehealth program, with officials saying more than 50,000 patients will be monitored on telehealth systems by 2011.

"The policy effects that result from the implementation of CCHT are profound," VA researchers said. "If 50 percent of patients requiring (non-institutional care) can ultimately be managed in a way that means they get improved access to care at lower cost and higher quality, then this represents an important advance. It means that a low cost and flexible solution will be available to deal with the large numbers of patients with chronic care conditions that health care systems know they need to serve."