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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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    1. 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.
    2. 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.
    3. 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.
    4. 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.
    5. 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.
    6. 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.
    7. 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.
    8. 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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