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The Impact of Increased Access to Telemedicine

Author

Listed:
  • Dan Zeltzer
  • Liran Einav
  • Joseph Rashba
  • Ran D. Balicer
Abstract
We estimate the impact of increased access to telemedicine that followed widespread adoption during the March-April 2020 lockdown period in Israel (due to COVID-19). We focus on the post-lockdown period, which in Israel was characterized by a temporary return to normalcy. Prior to the lockdown, telemedicine accounted for about 5% of all primary care visits. It peaked at around 40% during the lockdown, and remained high, at around 20%, during the post-lockdown period. Using a difference-in-differences framework, we compare primary care episodes before and after the lockdown between patients with high and low access to telemedicine, with access defined based on their main primary care physician’s propensity to adopt telemedicine during the lockdown. Increased access to telemedicine results in a 3.5% increase in primary care visits, but a 5% lower per-episode cost, so overall resource utilization is slightly lower. We find that remote visits involve slightly fewer prescriptions and more follow-ups, mainly with the same physician, which is consistent with a prolonged diagnostic path in the absence of physical examination. However, analyzing specific conditions, we find no evidence of missed diagnoses or adverse outcomes. Taken together, our findings suggest that the increased convenience of telemedicine does not compromise care quality or raise costs.

Suggested Citation

  • Dan Zeltzer & Liran Einav & Joseph Rashba & Ran D. Balicer, 2021. "The Impact of Increased Access to Telemedicine," NBER Working Papers 28978, National Bureau of Economic Research, Inc.
    • Handle: RePEc:nbr:nberwo:28978
    Note: AG EH LS PE PR
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    Cited by:

    1. Fu, Hongqiao & Cheng, Terence C. & Zhan, Jiajia & Xu, Duo & Yip, Winnie, 2024. "Dynamic effects of the COVID-19 pandemic on the demand for telemedicine services: Evidence from China," Journal of Economic Behavior & Organization, Elsevier, vol. 220(C), pages 531-557.
    2. Dahlstrand Rudin, Amanda, 2022. "Defying distance? The provision of services in the digital age," LSE Research Online Documents on Economics 118042, London School of Economics and Political Science, LSE Library.
    3. Goetz, Daniel, 2023. "Telemedicine competition, pricing, and technology adoption: Evidence from talk therapists," International Journal of Industrial Organization, Elsevier, vol. 89(C).

    More about this item

    JEL classification:

    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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