In low- and middle-income countries, many believe that telehealth services could significantly expand access to doctors by offering remote access at low cost. Yet, despite its convenience, telehealth care is limited by the absence of physical examination, point-of-care testing, or immediate treatment. Hence it is unclear how individuals value such options compared to standard face-to-face care. We study this issue in South Africa with general practitioners who today mostly practice in the private sector and are geographically located in wealthier areas with higher health insurance coverage. We use an incentive-compatible method to elicit robust measures of willingness-to-pay (WTP) for telehealth and face-to-face consultations with general practitioners in a sample of uninsured individuals. We find that only 36% of respondents are willing to pay the prevailing market price for a telehealth consultation. We find average WTP for in-person consultations is only 10% higher than that of telehealth. Additionally, individuals with higher health needs are willing to pay a premium for face-to-face consultations, while others are indifferent. Our findings suggest that private telehealth services are better suited for more minor health needs, but are unlikely to expand access to a majority unless cheaper models are introduced.
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Center for Health System Sustainability
Mylene Lagarde Ph.D.
London School of Economics and Political Science
Biography
Mylene Lagarde is Associate Professor of Health Economics and Deputy Head of Department (Research) in the Department of Health Policy. In her research, Mylene uses applied economic analysis and a range of empirical methods to understand the drivers of individual decisions made by patients as well as providers, with a view to inform current health policy debates in low- and middle income countries. She is particularly interested in exploring the determinants of providers’ performance and the demand for healthcare services.