Authors: Salmivalli, Lauri¹; Hilmola, Olli-Pekka²

Source: International Journal of Electronic Healthcare, Volume 2, Number 2, 27 January 2006 , pp. 132-148(17)

Publisher: Inderscience Publishers

Abstract:

In this paper, we analyse the current state of the development of electronic prescriptions in Europe and the USA. These two places have different approaches to the healthcare sector, since in the former one national social insurance usually provides treatment for all of the people (most often only with friction from total costs), but in the latter one the healthcare sector is under free market forces. As our analysis shows in this paper, electronic prescriptions in both of the places have developed in recent years quite favourably, but this development has not produced consistent results, whether electronic prescriptions should be provided by for-profit companies or should they be under strict control of governmental authorities. We base this finding in two empirical observations: (1) in Europe saving potential from electronic prescriptions is estimated to be high, and contains many abstract national economy accounts and (2) leading US companies (providing electronic prescription services) have went been able to increase their revenues significantly, but still their profitability is questionable. We argue that the situation of electronic prescriptions is similar with airline or credit card industry. Both of these are vital for international and local economies, but the business models have developed well after the initial idea.

Keywords: HEALTHCARE AND LEISURE JOURNALS; Healthcare and Medical Technology and Management; COMPUTING JOURNALS; Information Systems and Technology; Internet and Web Services

Document Type: Research article

DOI: http://dx.doi.org/10.1504/IJEH.2006.008828

Affiliations: 1: Information Systems Science, Turku School of Economics and Business Administration, Rehtorinpellonkatu 3, Turku FIN-20500, Finland. 2: Department of Marketing, Turku School of Economics and Business Administration, Rehtorinpellonkatu 3, Turku FIN-20500, Finland

Publication date: 2006-01-27

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