Physical and internet medical system: Service quality and management mode analysis

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In an era of social progress and policy changes, some hospitals have diversified their services by incorporating internet hospitals. However, since the development of internet hospitals has been delayed and their management model remains ambiguous, this paper employs game theory to establish an internet medical system. By categorizing patients based on their severity and their acceptance of telemedicine, and by devising the centralized and decentralized management models, the paper assesses the quality of service and management practices of internet hospitals. The findings reveal that under decentralized management, internet hospitals can enhance the quality of service in physical hospitals. Nevertheless, the disparity in quality of physical hospitals in the two medical systems under the centralized management mode requires clarification. In addition, the paper delves into hospital revenue and patient utility, indicating that while the establishment of internet hospitals may not consistently increase healthcare system revenue, it can significantly improve patient utility, especially in remote areas. These results provide valuable insights into the management and expansion of internet hospitals.