--- title: Measuring cost savings of virtual PT with HealthVerity Marketplace closed claims description: Closed claims from HealthVerity taXonomy reveal virtual PT lowers MSK costs and utilization, driving measurable healthcare savings. image: https://blog.healthverity.com/hubfs/Omada-health-blog.png --- Announcing HealthVerity Precision Event Alerts, a next-generation physician alerting solution. 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Now, the results are in: a new peer-reviewed manuscript [in PTJ](https://pubmed.ncbi.nlm.nih.gov/40600643/) shows that virtual physical therapy (PT) is not only clinically effective but also significantly reduces medical costs and utilization compared to in-person PT. This study was powered by closed claims data from [HealthVerity Marketplace](https://healthverity.com/marketplace/), underscoring the value of comprehensive, Verified real-world data in shaping the future of healthcare research.   ## Why closed claims matter in evaluating physical therapy MSK conditions are among the most costly health challenges in the United States, with PT often recommended as a first-line treatment. Traditional PT, however, can be difficult to access due to geography, scheduling, or insurance restrictions. Virtual PT offers a scalable, accessible alternative, and closed claims provide the most reliable lens into the true financial and utilization impact. By using [HealthVerity Marketplace](https://healthverity.com/marketplace/), which integrates Inovalon closed claims with the nation’s largest real-world data ecosystem, researchers were able to evaluate **cost differences** between virtual PT patients and matched in-person PT controls with confidence. ## Study design: sourcing closed claims data - **Population**: 342 virtual PT patients matched 3:1 with 1,026 in-person PT patients - **Data source**: Inovalon closed claims from HealthVerity Marketplace - **Analysis period**: July 2019 to May 2023 - **Follow-up**: 6 and 12 months ## Closed claims reveal cost savings and ROI from virtual PT Key findings include: - **Lower MSK costs**: Virtual physical therapy patients had $1,059 lower 6-month gross MSK costs and $1,049 lower 12-month costs versus in-person controls. Net savings after program costs were $398 and $432 per patient (Figure 1). - **Positive return on investment**: Both time points showed a 1.8x ROI. - **Reduced utilization**: Virtual PT patients used fewer total healthcare services, MSK services, and PT services at 6 and 12 months. - **Net savings**: Even after including the cost of virtual care, patients experienced significant savings in MSK total costs at 6 months and in PT costs at both 6 and 12 months. ![](https://lh7-rt.googleusercontent.com/docsz/AD_4nXfNVJhgOeQzaJ6KRf0DHC5Nz4dfgWxS6FzKpEVhw335sN4U76TOrWi-D1xlnFXMHLV3JilkBCfezf_U8kLhpPZQNnixtoFx4rYv678YVn-k5cMEYZ2q541tq4ZDBbnLgdRoIm7T?key=5yQyFZj5EKvvep5pYYFETw) **Figure 1:** Median cost savings per patient with virtual PT compared to in-person PT at 6 and 12 months. Created using data from Napoleone et al.1 These insights confirm that virtual PT care, when measured through closed claims, delivers meaningful reductions in healthcare spending while maintaining accessibility and patient outcomes. ## Expert perspective on HealthVerity closed claims data **Dr. Ian Livingstone, PhD, MBA,** is **Director of Data Science** at HealthVerity and a co-author of the recently published manuscript in *PTJ*. Dr. Livingstone guided the study design for this research by providing the strategic recommendation to leverage Inovalon closed claims from HealthVerity Marketplace and played a central role in analyzing the data that powered the success of this study. > “Virtual physical therapy has long been seen as a promising way to expand access to care, but this study proves it can also reduce costs and utilization. These insights, made possible by HealthVerity closed claims, highlight the importance of comprehensive and reliable real-world data in shaping the future of musculoskeletal care and related conditions.” > > \- Dr. Livingstone, **PhD, MBA,** **Director of Data Science at HealthVerity**   The ability to track and quantify outcomes like cost savings, utilization reductions, and ROI hinges on access to high-quality closed claims. [HealthVerity taXonomy](https://healthverity.com/taxonomy-portal/)**, available through [HealthVerity Marketplace](https://healthverity.com/marketplace/)** provides exactly that, with synchronized open and closed claims that give life sciences and digital health innovators unmatched coverage and precision. When combined with other real-world data sources in HealthVerity Marketplace, taXonomy delivers the most complete view of the patient journey. ## Get access to real-world open and closed claims data Closed claims are essential to uncovering the full story behind treatment costs and outcomes. [**HealthVerity Marketplace**](https://healthverity.com/marketplace/) and [taXonomy](https://healthverity.com/taxonomy-portal/) are the best source to access both open and closed claims at scale, ensuring reliable insights across clinical development, HEOR, and commercialization. [![Discover closed claims data with HealthVerity taXonomy ](https://no-cache.hubspot.com/cta/default/5412465/interactive-188589266814.png)](https://blog.healthverity.com/hs/cta/wi/redirect?encryptedPayload=AVxigLKl2CfiOsOCSMSuiXGcKU1VPZrlagQHOkPSz4tXTfa4QDmMFVaIIhEfn6s0KGAWMoO6fcd0lmE7OHGcJB%2F7Jqoxrqz5Ht9BYhyzCzUxA1BVEsXaVvIAiALPd2ROUO7yaHdaitzQ41wSnSzkwA3faaR69spWir%2B38vxLdj%2Fl%2FSNA06UksJw8r2vZqx%2BLpxmne32e%2B04lEjwuvjYzs64Jvi37SKmmYwR1HXVd&webInteractiveContentId=188589266814&portalId=5412465) ## References 1. Napoleone JM, Devaraj SM, Noble M, et al. Health care cost savings and utilization reductions associated with virtual physical therapy care: a propensity-matched claims analysis. Phys Ther. 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The analysis period spanned July 2019–May 2023, with outcomes examined at 6 and 12 months." }, "name" : "How was the study designed?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Virtual PT patients had $1,059 lower 6-month gross MSK costs and $1,049 lower 12-month costs versus controls. After program costs, net savings were $398 at 6 months and $432 at 12 months." }, "name" : "What cost savings were observed?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Yes. Both time points showed an approximate 1.8× ROI for virtual PT when measured with closed claims." }, "name" : "Was there a positive return on investment (ROI)?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Versus in-person PT, virtual PT patients used fewer total healthcare services, fewer MSK services, and fewer PT services at both 6 and 12 months." }, "name" : "How did utilization differ?" }, { "@type" : "Question", "acceptedAnswer" : { "@type" : "Answer", "text" : "Closed claims provide a comprehensive accounting of costs and encounters across settings and payers, enabling confident comparisons of true financial and utilization impact." }, "name" : "Why are closed claims important for this evaluation?" } ] } ```