Online Care Expansion and Patient Access: Evidence from Talk Therapists

Abstract

Using data from a search portal for mental health care services, we evaluate how an exogenous expansion in the number of online competitors in a market affects local providers of psychotherapy. We find a significant, positive effect of the supply expansion on local incumbent providers' propensity to exit from the portal but a limited effect on prices. We argue that online care expansion may reduce access for patients who prefer locally-provided care.