Telehealth Costs 5 Times Less Than Office Visits, Penn Medicine Study Finds

Researchers analyzed over 160,000 virtual and in-person visits for 10 common conditions, including COVID-19 and anxiety.

Published on Feb. 25, 2026

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A new study from Philadelphia-based Penn Medicine found that telehealth visits cost five times less on average than in-office care for common conditions that can be treated through both virtual and in-person visits. The researchers analyzed over 160,000 visits billed to insurers across four months in 2024, finding initial telehealth visits were $400 cheaper on average and resulted in fewer follow-up appointments.

Why it matters

The findings come as federal lawmakers have extended pandemic-era telehealth flexibilities for Medicare beneficiaries only through 2027. Penn Medicine's CEO warned that if telehealth reverts to a more limited pre-COVID model, the significant cost savings could disappear, impacting hospitals and health systems facing financial challenges.

The details

The study, published in JAMA Network Open in February 2026, focused on 10 common conditions that can be treated through both telehealth and in-person visits, such as COVID-19, respiratory symptoms, and anxiety. Telehealth visits were billed at an average of $96 compared to $509 for in-office visits. Telehealth patients also required fewer follow-up appointments on average (3 vs. 4).

  • The study analyzed over 160,000 visits billed to insurers across four months in 2024.
  • Federal lawmakers recently extended pandemic-era telehealth flexibilities for Medicare beneficiaries through 2027.

The players

Penn Medicine

A Philadelphia-based healthcare system that conducted the study on telehealth cost savings.

Kevin Mahoney

CEO of the University of Pennsylvania Health System and a co-author of the study.

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What they’re saying

“If telemedicine is allowed to revert to the more limited model that existed before COVID, the cost savings we identified could disappear. At a moment when hospitals and health systems face serious financial headwinds, those savings are vital. They enable us to reinvest in patient care and fuel innovation.”

— Kevin Mahoney, CEO, University of Pennsylvania Health System (Penn Medicine news release)

What’s next

Federal lawmakers will decide whether to extend the current telehealth flexibilities for Medicare beneficiaries beyond 2027.

The takeaway

This study highlights the significant cost savings potential of telehealth compared to in-person visits for common conditions, underscoring the importance of maintaining flexible telehealth policies to support healthcare systems' financial sustainability and ability to invest in patient care and innovation.