High-speed, public network telecommunication services are becoming critical to the health- care sector. We are examining the use of Asynchronous Transfer Mode (ATM) transmission of digital video to support remote real-time diagnostic procedures (e.g. fluoroscopy and ultrasound). Remote visualization may eliminate the need for a physician on-site, thus reducing personnel (physician) costs while providing access to remote physician specialists. A key requirement of cost-effective video transmission and storage is the need for data compression, JPEG compression provides reconstructed images of high quality, inexpensive codecs are now available, and the compressed data streams may be easily transmitted via ATM networks based on DS-3 transport. We will present a telemedicine model, describe a preliminary experimental protocol, and discuss psychovisual assessment of data from fluoroscopy and ultrasound examinations. Early results (monochrome medical video compressed at approximately 1 bit/pixel) provide a basis for examining deployment issues and costs.