How Teleneurology Is Changing Neurologist Earnings

The field of teleneurology is revolutionizing the way that patients access neurologic care. By expanding the reach of providers outside of traditional clinics and health systems, virtual visits have changed the way that physicians think about their neurology career trajectory and long-term financial plan.

As the adoption of teleneurology accelerates, neurologists are adapting their workloads and business models to include virtual visits. These new sources of income can have an impact on neurologist earnings, from the volume and intensity of appointments to the types of reimbursements available. In this article, we will dive into the short- and long-term effects of teleneurology on neurologist income to help you make better financial and career decisions.

Expansion of Teleneurology and Its Effect on Neurologist Earnings

Teleneurology has dramatically changed the way patients access and receive neurologic care. According to the American Academy of Neurology (AAN), prior to the COVID-19 pandemic, only about 1 percent of neurology providers were doing telemedicine. Then, by March-June 2020, telemedicine use among neurology providers jumped to 56.3 percent. While COVID restrictions have since eased, virtual visits and care have remained in place for patient follow-ups and rural outreach, in addition to chronic disease management.

For neurologists, the expansion of teleneurology has created new opportunities for income and revenue. Neurology virtual visits can mean shorter appointment times and increased patient access, improving a neurologist’s total patient billable encounters during the week. For patients, the greater access has the potential to increase neurologist earnings, especially for neurology subspecialties such as epilepsy and movement disorders that require more frequent monitoring and access.

Reimbursement Trends and Financial Implications in Teleneurology

Reimbursement for teleneurology has improved since 2020. The Centers for Medicare & Medicaid Services (CMS) expanded its list of covered telehealth services, and some private health insurers followed suit. However, the increase in insurance coverage does not imply a standardization in teleneurology reimbursement rates. For instance, some payers have parity in their telemedicine reimbursement, while others offer a lower reimbursement rate.

The lack of consistency in pay for virtual neurology services may also create financial variability for physicians. Employed neurologists are likely to have more consistent income because their employing health system negotiates the contracts with payers. For independent neurologists and practices, the payer mix is essential for calculating whether teleneurology visits are being fairly and adequately reimbursed. Balancing virtual and in-person patient access can lead to the most financial strength in practices, especially those operating in states where reimbursement parity exists.

Workload Shifts and Lifestyle Implications

Teleneurology has impacted not just neurologist earnings but also the intensity and lifestyle implications for neurologists. The ability to work remotely means neurologists can greatly reduce commute times and increase their scheduling flexibility. As a result, many neurologists can extend their time on the virtual calendar to evenings or weekends without having a serious impact on their quality of life or family time. The resulting additional hours may allow a neurologist to increase their overall earnings.

On the other hand, an increase in a telemedicine capacity may blur the lines of work-life balance. Neurologists have indicated they have had to increase their administrative workload around technology set-up and maintenance, electronic health record note updates, and patient portal correspondence. As a result, while it may be possible to overbook one’s schedule for virtual visits compared to in-clinic appointments, overextending a workday can cause burnout.

Private Practice vs. Institutional Teleneurology Models

The source of a neurologist’s earnings may also differ depending on where the neurologist is employed. In a private practice setting, overhead costs for a private practice may be reduced. Smaller office footprints or a lower in-clinic staffing need can positively impact the practice’s profit margin. In a clinical setting with a lower patient demand, neurologists may be able to expand their geographic service territory for revenue through virtual visits without geographic restrictions.

On the other hand, neurologists employed in an institution may be able to take advantage of higher patient volumes through clinic operations and a system-level telehealth infrastructure. However, employed neurologists may not have much say in the distribution of reimbursements. For example, a neurologist may be on a relative value unit (RVU) productivity model or a salary-based compensation structure. The terms of the contract can affect whether neurologists earn higher income from the expansion of teleneurology.

Long-Term Financial and Strategic Considerations

Teleneurology is likely here to stay. How teleneurology and virtual visits affect neurologist earnings in the short- and long-term can depend on the neurologist. Neurologists who have learned to effectively balance virtual and in-person neurology visits may experience higher total compensation while also better sustaining patient satisfaction and work-life balance.

From a financial planning perspective, teleneurology presents both short- and long-term financial opportunities as well as risks for physicians. An increased patient volume, for instance, can result in accelerated income. However, the variability of reimbursements and uncertainty of a changing regulatory landscape present potential risks to physicians in the long-term. Strategic and well-thought-out career and financial decisions that are integrated with the realities of teleneurology may help.

At Physician’s Thrive, we help physicians understand how their teleneurology income can affect their financial future. Contract review services can help ensure fair and adequate compensation for virtual visits, while insurance planning can help ensure that your practice and personal finances are protected against risk. Our investment and financial advisors are also here to help you manage your financial future as you adapt your career. Contact us today.