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The Effects of Deregulating Telemedicine on Consumer Welfare

  • Journal of Regulation Studies
  • 2016, 25(1), pp.25-54
  • Publisher : 한국규제학회
  • Research Area : Social Science > Public Administration

박문수 1 Daeyoung Koh 1 Chung, Hoe Sang 2

1산업연구원
2한국경제연구원

Accredited

ABSTRACT

This paper empirically examines how deregulation of telemedicine will affect consumer surplus. To that end, conjoint analysis and binomial logit model are applied to household-level survey data. We find that through the deregulation, if nurses are allowed to assist doctors in providing telemedicine services, or if telemedicine services can be provided to new patients as well as returning patients, then consumer surplus decreases. However, if prescriptions of drugs and treatments as well as examinations and counseling are possible through telemedicine services, or if telemedicine services can be provided in general hospitals as well as private hospitals, then consumer surplus increases. Dividing the entire sample into three income subgroups (low-, middle-, and high-income groups), we obtain the same estimation results. Our findings suggest that when discussing the introduction of telemedicine, the issues regarding medical quality and medical accessibility need to be considered separately.

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