A new study published in JAMA Network Open in May 2025 confirmed what Frontier Psychiatry has believed since day one: when people get timely access to psychiatric care, overall health outcomes improve and insurance costs stay down.
This paper supports existing research about medical spending. Frontier is built on the knowledge that preventative and maintenance psychiatric care and interventions can reduce the occurrence of psychiatric emergencies, hospitalizations, and inpatient care for many patients. The study authors aim to provide another proof of concept and point of evidence for payors across Montana and the US that insurance coverage for community-based care (like outpatient psychiatry) is both good for the payors and critical for the patients.
Key Study Takeaways at a Glance
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Hospitalizations dropped by 38 percent for Frontier patients as compared to the control group
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ER admissions for Frontier patients were nearly 18 percent lower than the control group
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Overall Medicaid costs were similar between groups
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For telepsychiatry patients, more money was spent on direct psychiatric care, and less was spent on hospital stays
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Frontier Psychiatry patients got care sooner, avoiding preventable emergencies that could be costly to payors and dangerous for patients
What Did the JAMA Study Examine?
The JAMA study looked at Medicaid claims data in Montana from 2022. Researchers compared a total of 5372 patients, with two groups of 2,686 patients each. The test group was comprised of 2686 Montana Medicaid patients who received virtual outpatient psychiatric care from Frontier Psychiatry providers in 2022. The control group was an equal number of propensity score-matched Montana Medicaid patients who did not use Frontier Psychiatry in 2022.
They measured:
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Costs billed to Medicaid per member per month
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Hospitalizations and readmissions at 30 days and 90 days
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Hospital admissions that came through emergency departments
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Short hospital stays (under 3 days)
What Did the Study Find?
- Total Health Spend Did Not Increase
Patients who saw Frontier psychiatrists had similar overall costs to those who didn’t.
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Medicaid spent more on professional psychiatric services for Frontier patients
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And Medicaid spent less on inpatient hospitalizations
The takeaway: investing in professional psychiatric care upfront helps avoid the far higher costs of hospital stays, keeping the overall costs of care relatively stable throughout the year.
- Patient Outcomes Improved
The difference in outcomes for patients was striking:
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Hospitalization rates were 38 percent lower for Frontier patients vs the control group
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ER-based admissions were 17.9 percent lower
Conclusions and Implications for the Study
With Medicaid costs per patient being very similar between groups, researchers concluded that investing in professional psychiatric care upfront helps avoid the far higher costs of hospital stays, keeping the overall costs of care relatively stable throughout the year. And with costs so similar, the question then rightly should become, “What is better for the patients?” Put plainly, patients who received outpatient psychiatric care from Frontier experience nearly 4 out of 10 fewer hospital stays and 1 in 5 fewer emergency admissions.
What This Means for Patients
For patients and families, the findings are encouraging, and Frontier hopes they are motivating too. Taking the time and dedicating the resources to partner with a psychiatrist for outpatient care (aka classic virtual psychiatry appointments) can lead to fewer hospitalizations, fewer emergencies, and better health outcomes overall. The study also proves again that virtual psychiatry is effective, meaning those who live in rural areas or who have busy schedules can still get quality psychiatric care even if they lack the time or resources to drive to a nearby specialist.
What This Means for Communities
When psychiatric care isn’t available to help care for patients and prevent mental health crises, local emergency departments and hospitals become the safety net. Rural hospitals in particular often lack the resources to handle surges in mental health crises.
Frontier’s telehealth psychiatry model changes that equation by:
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Reducing preventable psychiatric admissions means less strain on emergency rooms
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Preventing unnecessary “boarding” of psychiatric patients in local emergency rooms for hours or even days
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Benefitting under resourced communities when more people get the right care, in the right place, at the right time, with insurance coverage
What This Means for Payers and Policymakers
For Medicaid and other insurers, the JAMA study provides strong evidence that outpatient telepsychiatry is cost-effective and critically important for patients; the study shows both financial and ethical reasons for pre-crisis coverage.
By shifting costs away from expensive hospital stays toward professional outpatient care, the system saves money while patients stay healthier. This aligns with the growing movement toward value-based care, where outcomes matter as much as costs.
For policymakers, the message is clear: expanding access to outpatient telepsychiatry helps protect budgets, supports hospitals, and strengthens communities. Now more than ever, parity must be upheld.
Limitations and Next Steps
This study was based on one year of claims data from Medicaid in Montana, where reimbursement rates are higher than in most other states. Results may differ in other regions or with other insurance plans. The study also did not measure long-term remission or quality-of-life improvements, as only a year of data was included and analyzed.
The findings build on past research around preventative and outpatient care: early, accessible psychiatric care prevents crises and stabilizes costs. More research can build on this foundation, but the evidence already suggests that telepsychiatry (and outpatient psychiatry in general) should play a central role in how we deliver mental health care.
Frontier’s Ongoing Commitment to Accessible Psychiatry
Since 2019, Frontier has been working to untangle the complication of mental health by bringing care directly to patients via telehealth, serving over 25,000 patients across the northwest. Through secure virtual visits, its psychiatric providers serve patients across Montana, Idaho, and Alaska. With 30+ licensed psychiatric providers serving patients across every age group and most major payors accepted, Frontier is able to provide care to new patients in just 10 days or less.
Frontier’s goal is simple: quality psychiatric care should be accessible, compassionate, and evidence-based. Its entire team takes extreme pride in serving people often overlooked and underserved in psychiatry including patients on Medicaid, rural families, Veterans, and those navigating complex conditions.
“The JAMA Network Open study validates Frontier’s mission to provide trusted psychiatric excellence without barriers. The study confirms what our patients, providers, and partners already know: outpatient telepsychiatry works. It reduces hospitalizations, lowers emergency department use, and delivers these outcomes without raising overall costs for payors.” – Dr. Eric Arzubi
