Multichannel Delivery in Healthcare: The Impact of Telemedicine Centers in Southern India

Telemedicine is increasingly used across the developing world to expand access healthcare, improve outcomes, and reduce costs. One common model that of telemedicine centers, which are small primary care facilities run by midlevel (nonphysician) providers who conduct a preliminary examination then facilitate visit with remote physician in real time. However, impact this channel delivery—particularly on existing physical healthcare-delivery channels—has not been thoroughly examined. We use data from one largest tele-ophthalmology implementations examine issue. Using quasi-experimental difference-in-differences approach, we find opening nearby center generates 31% increase overall network rate population within 10 km new center, 62% driven patients, suggesting substantial access. The eyeglasses prescriptions correct for simple refractive errors increases 18.5%, whereas cataract surgery replace natural lens patient’s eye an artificial remains unchanged. treatment rates does significantly direct costs incurred but reduces their indirect (measured as travel distance) 30% (12 km). Finally, significant spatial heterogeneity these effects, vary distance patients facilities. These results have important implications design networks portfolio healthcare services provided through them. This paper was accepted Stefan Scholtes, management. Supplemental Material: files online appendix available at https://doi.org/10.1287/mnsc.2022.4488 .