2002 Volume 22 Issue 1 Pages 79-86
This paper examines the economic effect of the tele-home-care system being implemented in Kamaishi City. The economic benefit analyzed here is based upon WTP (willingness to pay), which was the question posed to its users in our survey. WTP per user is calculated as ¥4,519, and the total benefit of the system is obtained by multiplying this figure by the number of users. The cost items of the system include those of initial introduction and maintenance: the former includes costs of equipment and software, whereas the latter the salaries of staff and others. We conclude that the ratio of benefit to cost (B/C ratio) is more than one, which indicates that benefits exceed its costs in the case of Kamaishi City.
Another characteristic of the paper lies in its analysis as to how the benefits expressed in terms of WTP are attributed in exact monetary terms to factors such as stabilization of illness, enhancement of health consciousness, dissolution of uneasiness, and decrease in medical expenditures. It shows who bears the cost of the system, namely, the amounts paid by individual users and public medical insurance. Thus, this paper suggests that the tele-home-care system be financially supported by public funds.
