Managed Care

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

  1. Matthew Berman1,*,
  2. Andrea Fenaughty2

Article first published online: 20 OCT 2004

DOI: 10.1002/hec.952

Issue

Health Economics

Health Economics

Volume 14, Issue 6, pages 559–573, June 2005

Additional Information

How to Cite

Berman, M. and Fenaughty, A. (2005), Technology and managed care: patient benefits of telemedicine in a rural health care network. Health Economics, 14: 559–573. doi: 10.1002/hec.952

Author Information

  1. 1

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

  2. 2

    Division of Public Health, State of Alaska, USA

*Institute of Social and Economic Research, University of Alaska Anchorage, 3211 Providence Drive, Anchorage, AK 99508, USA

Publication History

  1. Issue published online: 9 MAY 2005
  2. Article first published online: 20 OCT 2004
  3. Manuscript Accepted: 10 JUN 2004
  4. Manuscript Received: 20 MAR 2002

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Keywords:

  • rationed markets;
  • health services;
  • managed care;
  • random utility model;
  • telemedicine

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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