Banner Health achieves 27% cost of care savings with telehealth

Banner Health

achieves 27%

cost of care savings¹

with telehealth

Philips and Banner Health telehealth program
Learn how an efficient telehealth program from Philips and Banner Health allows people to receive high-quality health care from the comfort of their own home.

“Telemedicine (or telehealth) is becoming increasingly attractive to a health care industry that is re-inventing itself to provide better care at lower costs²,” says Peter S. Fine, President and CEO of Banner Health a health provider based in Arizona with facilities in seven states.


In May of 2015, Royal Philips and Banner Health announced the successful results of their 2013 at-home telehealth pilot program for patients with multiple chronic conditions. An analysis of the results of each patient's first six months demonstrate that the program achieved¹:

  • 45% reduction in hospitalizations
  • 32% reduction in acute and long term care costs
  • 27% reduction in cost of care


This example of successful home healthcare demonstrates how an organization can realize the true value of telehealth. In the case of the VA, their Chief Consultant for Telehealth estimates that approximately 29% of telehealth patients avoided long-term institutional care by participating in a similar VA program, in fiscal year (FY) 2013³.

Technology, talent unite


Whether you call it telehealth, telemedicine, telecare, or remote patient monitoring, the intent is the same – to provide at-home patients with near-instant access to caregivers.


Banner uses the term iCare™ to describe their program. This innovative service includes, “providers, technology and a highly collaborative care process to treat Banner Health Network members with complex, chronic illnesses. Through the use of a tablet-like device, patients interact directly with their health team – primary care physician, pharmacist, nurse and health coach – to track and address any medical concerns.”


None of this is possible without the introduction of state-of-the-art medical communication technology, enabling experts to remotely monitor patient symptoms and vital signs to provide timely, focused interventions. It also requires significant changes in work processes and must be thoughtfully integrated into existing care pathways.


It’s a win-win situation


Banner recently enrolled its 500th patient into the iCare program. The health team collects and analyzes objective and subjective health data to identify early stages of deterioration and prevent adverse events. This type of remote patient monitoring or proactive home healthcare, helps engage each patient to become involved in his or her own care routine. Both patient and caregiver win.

I can catch things earlier, treat things earlier, and intervene in a way that allows me to accomplish what I set out to do as a geriatrician, and then ultimately do some good in these patients’ lives.”

Edward Perrin, MD

Banner iCare™

Benefits of telehealth are tangible¹


Prior to enrollment in the iCare program, there were 11.5 hospitalizations per 100 patients per month. After enrollment:

  • Acute short-term hospital stays dropped from 7.7 hospitalizations per 100 patients per month to 4.9.
  • Long-term care, home health or other facility stays fell from 3.9 hospitalizations per 100 patients per month to 1.4.
  • The average number of days in the hospital per 100 patients per month also fell—from 90.2 to 65.8.


Cost of care savings were driven primarily by a reduction in hospitalization rates and days in the hospital, as well as a reduction in professional service and outpatient costs.

As we continue to expand this program, we anticipate seeing further proof that telehealth programs can address readmissions rates, reduce costs, and improve the health and quality of life for patients with multiple chronic diseases.”

Hargobind Khurana, MD

Senior Medical Director of Health Management, Banner Health

"The results of our at-home telehealth pilot with Philips have been dramatic and are indicative of the exponential success such a program could have by engaging patients in their own care and building a strong support system around them," said Dr. Hargobind Khurana, senior medical director of Health Management, Banner.


Telehealth at the VA


A key requirement for patients enrolling in the Banner iCare program is that they must have at least five chronic health conditions². This requirement is certainly pertinent to the VA. Studies show that Veterans have a higher prevalence of many chronic physical health conditions (including cancer, diabetes, and GERD) than non-Veterans⁴.


Programs for complex care, chronic disease management, and readmission management help Banner Health and the VA meet their clinical and business needs, while positively impacting patient outcomes. Both continue to be leaders in telehealth, seeking to further advance the efficacy of home healthcare.

Related articles
We must challenge ourselves to redefine how and where care is offered. With today's diverse Veteran population and the VA's drive toward improved access to quality healthcare, the focus on flexibly and efficiency in serving patients has never been more important.
Providing access to care for Veterans across the country at hospitals and in their homes is a challenge shared by Medical Directors and Network Directors. Increasing costs and staffing demands make this problem more complicated. Innovative telehealth and telemedicine methods and tools can complement the VA’s current programs.
Whether it's reaching into the Veteran patient's home, or out to short-staffed ICUs, telehealth – or the application of technology assisted remote care – is being applied with exceptional results.
Deliver care with confidence to your Veterans using our comprehensive set of telehealth solutions, available across post-acute settings.


eCareCoordinator – clinical dashboard for ambulatory care that connects patients with their caregivers and caregivers with one another


eCareCompanion – telehealth app that patients access at home on a secure tablet to share health information with their caregiver



eTrAC – ambulatory health program that enables clinicians and patients to stay closely connected during the transition to ambulatory care


eIAC – ambulatory health program designed for monitoring and delivering care to the most complex patients – at home


eCAC – Help reduce mortality, hospital admissions and costs for chronic patients in the community.⁵

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¹ Dahl, D., Khurana MD, H. (2015). Impact of an intensive ambulatory program on both financial and clinical outcomes in Banner Health. Unpublished internal study. Results are specific to the institution where they were obtained and may not reflect the results achievable at other institutions.


² Munro, Dan, Targeting the ‘Superusers’ of Healthcare with Telehealth, Forbes Magazine Online edition, May 3, 2015, Forbes Media LLC, Copyright 2015


³ Veterans Health Administration, Audit of Home Telehealth Program, March 9, 2015, 13-00716-101, page #2, found at


⁴ RAND Corporation, prepared for U.S. Department of Veterans Affairs, Assessment A (Demographics), Sept. 1, 2015, ©2015 Rand Corporation. All rights reserved, page #131,


⁵ Bashshur RL, et al. The Empirical Foundations of Telemedicine Interventions for Chronic Disease Management. Telemed and e-Health. 2014 Sept; 20(9):769-800.


⁶ Several articles point to increased access for patients. For example, Telemedicine and e-Health. May 2012, 18(4): A-1-A-146. doi:10.1089/tmj.2012.9994. Accessed 15-Dec-15. Another example, “Survey: Telehealth Increases Access to Care, Continuity” Accessed 15-Dec-15