Value-chain analysis of a rural health program: toward understanding the cost benefit of telemedicine applications.
While telemedicine's clinical effectiveness and educational benefits are accepted, its cost-effectiveness is controversial. This study focuses on telemedicine's cost-effectiveness from a provider's perspective. Reviews of the cost-effectiveness literature in telemedicine are critical of past studies' (a) methodological and analytical weaknesses; (b) focus on answering "Can we do this?" rather than "Should we do this?"; and (c) emphasis on patient benefits. Value chain analysis examines structural and executional cost drivers; a self-sustaining business model balances the cost and value associated with each telemedicine activity. We illustrate this analysis in a rural health program, examining teleradiography and telerehabilitation.
Gamble
John E
JE
Mitchell College of Business at the University of South Alabama, Mobile, USA.
Savage
Grant T
GT
Icenogle
Marjorie L
ML
D017046:Cost Savings; D003362:Cost-Benefit Analysis / Q000379:methods*; D006302:Health Services Research; D006801:Humans; D012046:Rehabilitation; D019035:Rural Health Services / Q000191:economics* / Q000458:organization & administration; D017216:Telemedicine / Q000191:economics* / Q000458:organization & administration; D019112:Teleradiology; D014481:United States