An analysis of telemedicine in Taiwan: A business model perspective

Background: As a useful tool, business model holds the promises to make operations explicitly in terms of what services and benefits the consumer may receive, the ways services may be provided, and what financial benefits the operations may yield. Previous researchers have used business models to examine components of operations for telemedicine in the United States. There exists an omission in the literature concerning its commercial potential consideration. The purpose of this study is to apply business model perspective to generate a framework to analyze six major telemedicine projects in Taiwan. Methods: This study used a business-model perspective and applied case study to examine six major telemedicine projects launched in a commercial operation. These cases encompassed the three major types of players, including hospitals, security firms, and not-for-profit organizations and represented the four models of long-term care service delivers, including home care, community-based care, institutional care, and mobile security care. Data were collected through in-depth interviews with the managers or principal executers of each project. Results: The finding of this study indicate that value proposition, partnership, resource, and capability affect service process and cost structures. This in turn has an impact on customers' acceptance of telemedicine. Conclusions: The framework we proposed serves as a useful tool to obtain more insights into the future development of telemedicine. The cost of operating a telemedicine service system is currently not low. The practitioner could reduce the cost through modifying value proposition, service process or allying with more experienced partner.