Abstract
This paper attempts to estimate economic values of telemedicine and to extract factors that promote telemedicine through the use of survey data. This is the first analysis aimed at evaluating telemedicine in Japan. We utilized the Contingent Valuation Method and estimated demand functions of telemedicine. Because the number of institutions replying with willingness to pay (WTP) and willingness to undertake (WTU) is relatively small, the Kernel Estimation Method was applied. After estimating WTP and WTU, by multiplying the number of medical institutions currently implementing telemedicine, the whole value in Japan was obtained. By using the Tobit Model, factors that influence WTP and WTU were extracted. Estimated WTP was $35.23 for teleradiology and $162.89 for telepathology. WTU estimated was$39.81 for teleradiology and $86.59 for telepathology. Estimated economic benefits in Japan for 1 year were $1.27 million for WTP of teleradiology and $278,600 for telepathology. WTU is $10 million for teleradiology and $393,400 for telepathology. Medical institutions with the following characteristics tend to reply larger WTP: (1) university hospitals, (2) internal medicine,(3) radiology, and (4) use of video conference systems. Regarding WTU, the following characteristics influence WTU: (1) use of a personal computer, (2) use of telepathology equipment,(3) high satisfaction with the quality of telemedicine, and (4) experience base of telemedicine. Based on the nationwide survey on telemedicine, the total value of telemedicine in Japan was estimated. In addition to the evaluation, quantitative aspects of implementation of telemedicine, such as factors to promote telemedicine, are analyzed. These can provide useful information for further implementation of telemedicine not only in Japan but in other countries as well.
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