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Technology and managed care: patient benefits of telemedicine in a rural health care network

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  • Matthew Berman
  • Andrea Fenaughty

Abstract

Rural health providers have looked to telemedicine as a technology to reduce costs. However, virtual access to physicians and specialists may alter patients' demand for face‐to‐face physician access. We develop a model of service demand under managed care, and apply the model to a telemedicine application in rural Alaska. Provider‐imposed delays and patient costs were highly significant predictors of patient contingent choices in a survey of ENT clinic patients. The results suggest that telemedicine increased estimated patient benefits by about $40 per visit, and reduced patients' loss from rationing of access to physicians by about 20%. Copyright © 2004 John Wiley & Sons, Ltd.

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  • Matthew Berman & Andrea Fenaughty, 2005. "Technology and managed care: patient benefits of telemedicine in a rural health care network," Health Economics, John Wiley & Sons, Ltd., vol. 14(6), pages 559-573, June.
    • Handle: RePEc:wly:hlthec:v:14:y:2005:i:6:p:559-573
    DOI: 10.1002/hec.952
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    Cited by:

    1. Antonio Lopez-Villegas & César Leal-Costa & Mercedes Perez-Heredia & Irene Villegas-Tripiana & Daniel Catalán-Matamoros, 2021. "Knowledge Update on the Economic Evaluation of Pacemaker Telemonitoring Systems," IJERPH, MDPI, vol. 18(22), pages 1-22, November.
    2. Susan J. Méndez & Daniel Avdic & Johannes S. Kunz & Maria Wiśniewska, 2024. "Does telemedicine affect prescribing quality in primary care?," Melbourne Institute Working Paper Series wp2024n09, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne.
    3. Awaworyi Churchill, Sefa & Ocloo, Janet Exornam & Siawor-Robertson, Diana, 2015. "Ethnic diversity makes me sick! An examination of ethnic diversity’s effect on health outcomes," EconStor Preprints 123721, ZBW - Leibniz Information Centre for Economics.
    4. Anca M. Cotet & Daniel K. Benjamin, 2013. "Medical Regulation And Health Outcomes: The Effect Of The Physician Examination Requirement," Health Economics, John Wiley & Sons, Ltd., vol. 22(4), pages 393-409, April.
    5. Matias Busso & Maria P. Gonzalez & Carlos Scartascini, 2022. "On the demand for telemedicine: Evidence from the COVID‐19 pandemic," Health Economics, John Wiley & Sons, Ltd., vol. 31(7), pages 1491-1505, July.
    6. Jieun Chang & Scott J. Savage & Donald M. Waldman, 2017. "Estimating Willingness to Pay for Online Health Services with Discrete-Choice Experiments," Applied Health Economics and Health Policy, Springer, vol. 15(4), pages 491-500, August.
    7. Fuhmei Wang & Jung-Der Wang, 2021. "The Determinants of Telehealth Provision: Empirical Evidence from OECD Countries," IJERPH, MDPI, vol. 18(16), pages 1-13, August.
    8. Sefa Awaworyi Churchill & Janet Exornam Ocloo & Diana Siawor-Robertson, 2017. "Ethnic Diversity and Health Outcomes," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 134(3), pages 1077-1112, December.
    9. Jun Sun & Zhe Qu, 2015. "Understanding health information technology adoption: A synthesis of literature from an activity perspective," Information Systems Frontiers, Springer, vol. 17(5), pages 1177-1190, October.

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