An empirical analysis of economic evaluation of Japanese teleradiology and telepathology

Abstract

Based on mail surveys sent to 622 medical institutions all over Japan, this paper analyzes the economic evaluation of Japanese telemedicine. Economic benefits are defined as WTP (willingness to pay) and WTU (willingness to undertake). By utilizing the Kernel Estimation Method, the WTP of teleradiology US$38.08 (4,379 yen), telepathology US$82.83 (9,526 yen), teleconferencing (2,084 yen), and teleconsultation US$5.50 (633 yen) were obtained. Estimated WTU are: teleradiology US$37.70 (3,875 yen), telepathology US$155.81 (17,918 yen), teleconference US$28.09 (3,230 yen), teleconsultation US$36.68 (3,643 yen). These values are larger than the current charges that customers actually pay or providers receive. By multiplying these values by the number medical institutions which actually implement telemedicine, the total annual benefits of telemedicine are estimated. This paper also clarifies the factors that influence WTP and WTU. The future potential of telemedicine is analyzed by the binary probit model. We found that medical institutions having the following opinions have strong desire to request telemedicine services: (i) telemedicine can cope with people's various needs for health, medicine, and care; and (ii) hospitals implementing more telemedicine are advancing. On the other hand, for those medical institutions undertaking telemedicine, those with high level of medical quality - for example, those registered for special functions or medical training - have a strong desire to provide such services in the future. Moreover, being of the opinion that telemedicine provides a chance for exchanging medical and health information significantly correlates with a desire to expand telemedicine services.