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Estimating the Economic Impact of Telemedicine in a Rural Community

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  • Whitacre, Brian E.

Abstract

One commonly discussed benefit of broadband access in rural America is the potential for telemedicine visits that allow rural residents to take advantage of urbanized medical services. While the primary benefit of telemedicine is often viewed as improved health care access, the availability of these services also offers significant economic contributions to the local community. Site visits to 24 rural hospitals of varying size over a four-state area in the Midwest provide information to develop a methodology for estimating telemedicine’s economic impact. Using this technique, telemedicine services contribute between $20,000 and $1.3M annually to these local economies, with an average of $522,000.

Suggested Citation

  • Whitacre, Brian E., 2011. "Estimating the Economic Impact of Telemedicine in a Rural Community," Agricultural and Resource Economics Review, Northeastern Agricultural and Resource Economics Association, vol. 40(2), pages 1-12, August.
    • Handle: RePEc:ags:arerjl:117770
    DOI: 10.22004/ag.econ.117770
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    References listed on IDEAS

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    1. Goetz, Stephan J. & Debertin, David L., 1994. "Locational Choices of Medical Doctors: A U.S. County-Level Analysis," Staff Papers 159236, University of Kentucky, Department of Agricultural Economics.
    2. Susan M. Capalbo & Christine N. Heggem, 1999. "Valuing Rural Health Care: Issues of Access and Quality," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 674-679.
    3. Nancy E. Bockstael, 1999. "The Use of Random Utility in Modeling Rural Health Care Demand: Discussion," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(3), pages 692-695.
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    Cited by:

    1. Adrian Dumitru Tantau & Cristian Vizitiu & Vlad Valeanu, 2014. "The Responsibility of Telemedicine Focused Organizations in regards to creating Compliant end Users Products and Services," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 16(35), pages 108-108, February.
    2. González, María P. & Scartascini, Carlos, 2023. "Increasing the Use of Telemedicine: A Field Experiment," IDB Publications (Working Papers) 12850, Inter-American Development Bank.
    3. Stenberg, Peter L., 2014. "The Farm Bill and Rural Economies: Broadband Investment Over the last Decade," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 173277, Agricultural and Applied Economics Association.
    4. Allison Baker & Patrick Brogan & Octavian Carare & Nicholas Copeland & Patrick DeGraba & Steven Kauffman & Paul Lafontaine & Catherine Matraves & Jeffrey Prince & Sean Sullivan & Patrick Sun & Emily T, 2020. "Economics at the FCC 2019–2020: Spectrum Policy, Universal Service, Inmate Calling Services, and Telehealth," Review of Industrial Organization, Springer;The Industrial Organization Society, vol. 57(4), pages 827-858, December.
    5. Gabriele Palozzi & Irene Schettini & Antonio Chirico, 2020. "Enhancing the Sustainable Goal of Access to Healthcare: Findings from a Literature Review on Telemedicine Employment in Rural Areas," Sustainability, MDPI, vol. 12(8), pages 1-30, April.
    6. Stenberg, Peter L. & Morehart, Mitchell J. & Vogel, Stephen J. & Cromartie, John & Breneman, Vincent E. & Brown, Dennis M., 2009. "Broadband Internet's Value for Rural America," Economic Research Report 55944, United States Department of Agriculture, Economic Research Service.

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