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Telemedicine and the Welfare State: The Swedish Experience

Author

Listed:
  • Blix, Mårten

    (Research Institute of Industrial Economics (IFN))

  • Jeansson, Johanna

    (FEM in Stockholm)

Abstract

Sweden combines a vibrant market economy with a large public sector. This combination of public and private also characterizes the country’s comprehensive tax-financed welfare services. More than one-third of primary health care is today produced in the private sector. This substantial share has broad implications for how digitalization reshapes those welfare services. In this paper, we focus on how telemedicine is set to transform primary health care in Sweden, where doctors have been available via video calls on smartphone apps since 2016. The novel element in Swedish health care is that the doctors are available as a public welfare service but by private providers. With some exceptions, patients pay a small fee, but most of the cost is borne by the tax-payers. While the benefits of telemedicine are many – such as easier access to doctors and a reduction of non-essential travel – the downside for public finances is that the demand for care, and hence costs, may increase dramatically. As telemedicine becomes more popular, the tensions in regards to financing and regulation are already in evidence and look set to rise further. We outline steps that could better integrate telemedicine into the health care system.

Suggested Citation

  • Blix, Mårten & Jeansson, Johanna, 2018. "Telemedicine and the Welfare State: The Swedish Experience," Working Paper Series 1238, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:1238
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    References listed on IDEAS

    as
    1. Lina Maria Ellegård & Jens Dietrichson & Anders Anell, 2018. "Can pay‐for‐performance to primary care providers stimulate appropriate use of antibiotics?," Health Economics, John Wiley & Sons, Ltd., vol. 27(1), pages 39-54, January.
    2. Niklas Jakobsson & Mikael Svensson, 2016. "The effect of copayments on primary care utilization: results from a quasi-experiment," Applied Economics, Taylor & Francis Journals, vol. 48(39), pages 3752-3762, August.
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    Cited by:

    1. Ziebland, Sue & Hyde, Emma & Powell, John, 2021. "Power, paradox and pessimism: On the unintended consequences of digital health technologies in primary care," Social Science & Medicine, Elsevier, vol. 289(C).

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    More about this item

    Keywords

    Primary health care; Telemedicine; Welfare state; Digitalization; Privatization; Outsourcing;
    All these keywords.

    JEL classification:

    • H75 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Government: Health, Education, and Welfare
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • I18 - Health, Education, and Welfare - - Health - - - Government Policy; Regulation; Public Health

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