A telehealth tool developed by the Houston Fire Department could be distributed across the country after Houston City Council created a for-profit corporation to sell the system to other governments.
The Emergency Telehealth and Navigation (ETHAN) system is intended to reduce unnecessary ambulance transportation. After EMTs deploy to an emergency call that doesn’t require hospitalization, ETHAN connects patients to physicians via video link and redirects them to a more appropriate healthcare source, like a clinic.
“It saves the EMS system in terms of time and effort and money, it saves the patient money, and it generally gets them more appropriate healthcare in sometimes even faster order than had they gone to the emergency department,” said David Persse, EMS Physician Director for HFD.
According to the city, more than 37,000 patients have used ETHAN over the last decade. It’s saved an average of 44 minutes per EMS call, and it’s saved the ambulance system $22 million since 2014.
ETHAN had previously been funded by grants, but those funds are set to expire in February 2025. Houston City Council last week approved the creation of the ETHAN Local Government Corporation, which will allow the sale of the tool to other governments.
“By providing this service to surrounding communities, and really communities across Texas, that opens the door for us to be able to make it available to other communities and also generate its own income so that it won’t need to be taxpayer-supported in the future,” Persse said. “The solution that this provides is certainly not a Houston or Texas challenge within EMS. It is, in fact, a national challenge, and there is potential that this becomes a national resource for EMS provider agencies across the entire nation.”
HFD Chief Thomas Muñoz described ETHAN as a much-needed “force multiplier,” especially as the department faces a shortfall of 600 firefighters.
“This is something that will definitely put us at the next level for the care that the residents deserve,” Muñoz told the city’s Public Safety Committee in early October.
Before City Council unanimously approved the creation of the ETHAN corporation on Wednesday, City Council Member Julian Ramirez struck a cautious note.
“This is a startup and it comes with the risks that accompany all startups — namely, there’s no revenue, no customers at this point,” Ramirez said, pointing to $2.5 million in seed funding from the city. “I’ve been assured that in short order … We’ll have to see some revenue and some indication that this is going to succeed so that we won’t be dragged down for several years, pouring money into something that’s not going to work. And so with that representation, I’m happy to support.”
As Persse pointed out, the new corporation benefits from existing proof-of-concept.
“On one hand, it’s innovative,” he said. “On the other hand, we’ve been refining it for over a decade now.”
The “conservative” profit projections have ETHAN reaching positive cash flow within three years when it’s expected to turn just under $1 million in profit. At the five-year mark, the service is projected to turn more than $9 million in profit. That revenue would be shared by the ETHAN corporation and the City of Houston.
