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

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  • Matthew Berman

    (Institute of Social and Economic Research, University of Alaska Anchorage, USA)

  • Andrea Fenaughty

    (Division of Public Health, State of Alaska, USA)

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.

Suggested Citation

  • 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.
  • Handle: RePEc:wly:hlthec:v:14:y:2005:i:6:p:559-573
    DOI: 10.1002/hec.952
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    References listed on IDEAS

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    2. repec:spr:soinre:v:134:y:2017:i:3:d:10.1007_s11205-016-1454-7 is not listed on IDEAS
    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 - German National Library of Economics.
    4. repec:spr:infosf:v:17:y:2015:i:5:d:10.1007_s10796-014-9497-2 is not listed on IDEAS

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