The influential factors of designing a telehealth system: Empirical evidences from OECD countries (Preprint)

Abstract

Health services provided through the telecommunications system aim to improve the population’s health and well-being.

This research aims to test (1) how socio-economic and health factors affect the provision of telehealth services, (2) how telehealth is associated with ageing communities.

Applying OECD countries’ experiences this research uses a logistic regression model to establish a relationship between a binary outcome variable, adopting a telehealth system or not, and a group of explanatory variables.

Estimation results find: when the ratio of the elderly relative to the population exceeds 10 per cent, the probability of introducing telehealth services increases. Especially, when the ageing ratio exceeds 18 per cent, there is a clear demand for telehealth services in the community. With the current ageing ratio, 14.92 per cent, the probability of introducing a telehealth system is 0.84. If the per capita gross domestic products (GDP) exceeds 45000 US dollars, there is a definite demand for telehealth among the population. With the current income of 37930.15 US dollars per year, the probability of introducing a telehealth system into the community is 0.5. If the average propensity to consumption, the ratio of per capita consumption relative to per capita GDP, exceeds 0.73, the probability of introducing telehealth decreases to zero. With the current per capita consumption, 18931.98 US dollars per year, the possibility of introducing telehealth services is 0.5.The implications of these findings could be applicable to other countries to serve more deserving people.

We thus recommend more work be undertaken to reduce the cost of m-health or e-health in low-income countries. With affordable e-health services, the population’s health can be improved, which in turn will be associated with increases in productivity and per capita income. The average propensity to consumption on subsistence will decrease and the implementation of a telehealth system could be made possible.