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New Research from Omada Health Demonstrates Significant Cost Savings of Virtual Physical Therapy
Compared to in-person physical therapy, claims data revealed lower healthcare utilization and spending for patients who used Omada’s programs for
About this update from Omada Health, Inc.
[{"type":"text","content":"Compared to in-person physical therapy, claims data revealed lower healthcare utilization and spending for patients who used Omada’s programs for musculoskeletal conditions\nSAN FRANCISCO, Aug. 28, 2025 (GLOBE NEWSWIRE) -- Omada Health (Nasdaq: OMDA), the virtual between-visit healthcare provider, released new data¹ demonstrating that patients who used Omada’s virtual physical therapy (PT) program to address musculoskeletal (MSK) conditions, Omada for Joint & Muscle Health, had lower utilization of total medical care and reduced MSK-related costs and encounters on average at 6 and 12 months compared to patients who used in-person PT (IP-PT). This study is believed to be one of the first peer-reviewed healthcare claims analyses to compare costs and utilization of virtual PT (V-PT) and IP-PT in treating MSK conditions while also accounting for the cost of the virtual program itself. In the U.S., MSK conditions affect more than one in two adults and cost the healthcare system over $420 billion in 2018—more than cost of diabetes, heart disease, or any other chronic condition.² While physical therapy is often the first line of defense for MSK-related conditions³ ahead of costlier and higher-risk interventions like surgery, patients can face multiple barriers to accessing and participating in timely physical therapist care—geographic barriers, provider availability, and coverage restrictions like coinsurance or limits on the number of visits.⁴ Delays in starting PT treatment can add to downstream costs associated with care—like imaging and pain management—and increase the cost burden on individuals, employers, and health plans alike.⁵ “Previous studies have shown that virtual physical therapy can reduce healthcare utilization and spending, but they have left out critical cost components,” said Sarah Linke, PhD, MPH, Senior Director, Clinical & Translational Research, Omada Health. “Our findings demonstrate that Omada’s human-led, virtual MSK program not only reduced direct service expenditures but also has the potential to be more cost-effective than in-person physical therapy over time, even after accounting for the cost of the program itself.” Omada’s study used Identity Manager, HealthVerity’s patient de-identification and identity resolution technology, and claims data from July 2019 to May 2023, sourced from HealthVerity Marketpl...