The added value of thorough Economic Evaluation of Telemedicine Networks

Myriam Le Goff-Pronost () and Claude Sicotte ()
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Myriam Le Goff-Pronost: LUSSI - Département Logique des Usages, Sciences sociales et Sciences de l'Information - UEB - Université européenne de Bretagne - European University of Brittany - Télécom Bretagne - IMT - Institut Mines-Télécom [Paris], MARSOUIN - Môle Armoricain de Recherche sur la SOciété de l'information et des usages d'INternet - UR - Université de Rennes - UEB - Université européenne de Bretagne - European University of Brittany - UBS - Université de Bretagne Sud - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - UBO - Université de Brest - Télécom Bretagne - IMT - Institut Mines-Télécom [Paris] - UR2 - Université de Rennes 2, CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique
Claude Sicotte: Département d'administration de la santé - UdeM - Université de Montréal

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Abstract: This paper proposes a thorough framework for the economic evaluation of telemedicine networks. A standard cost analysis methodology was used as the initial base, similar to the evaluation method currently being applied to telemedicine, and to which we suggest to adding subsequent stages that enhance the scope and sophistication of the analytical methodology. We completed the methodology with a longitudinal and stakeholder analysis, followed by the calculation of a break-even threshold, a calculation of the economic outcome based on net present value (NPV), an estimate of the social gain through external effects and an assessment of the probability of social benefits. In order to illustrate the advantages, constraints and limitations of the proposed framework, we tested it in a pediatric cardiology tele-expertise network. The results demonstrate that the project threshold was not reached after the four years of the study. Also, the calculation of the project's NPV remained negative. However, the additional analytical steps of the proposed framework allowed us to highlight alternatives that can make this service economically viable. These were use over an extended period of time, extending the network to other telemedicine specialties, or including it in the services offered by other community hospitals. In sum, the results demonstrate the usefulness of the economic evaluation framework as a way of offering decision makers the tools they need to make comprehensive evaluations of telemedicine networks.

Keywords: Telemedicine; Economic evaluation; Cost analysis; Health care networks (search for similar items in EconPapers)
Date: 2010
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Published in European Journal of Health Economics, 2010, 11 (1), pp.45-55. ⟨10.1007/s10198-009-0162-5⟩

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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:halshs-00486269

DOI: 10.1007/s10198-009-0162-5

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