Inter-American Development Bank
facebook
twitter
youtube
linkedin
instagram
Abierto al públicoBeyond BordersCaribbean Development TrendsCiudades SosteniblesEnergía para el FuturoEnfoque EducaciónFactor TrabajoGente SaludableGestión fiscalGobernarteIdeas MatterIdeas que CuentanIdeaçãoImpactoIndustrias CreativasLa Maleta AbiertaMoviliblogMás Allá de las FronterasNegocios SosteniblesPrimeros PasosPuntos sobre la iSeguridad CiudadanaSostenibilidadVolvamos a la fuente¿Y si hablamos de igualdad?Home
Citizen Security and Justice Creative Industries Development Effectiveness Early Childhood Development Education Energy Envirnment. Climate Change and Safeguards Fiscal policy and management Gender and Diversity Health Labor and pensions Open Knowledge Public management Science, Technology and Innovation  Trade and Regional Integration Urban Development and Housing Water and Sanitation
  • Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer

Ideas Matter

  • HOME
  • CATEGORIES
    • Behavioral Economics
    • Environment and Climate Change
    • Macroeconomics and Finance
    • Microeconomics and Competitiveness
    • Politics and Institutions
    • Social Issues
  • Authors
  • Spanish
Telemedicine underserved communities Latin America Caribbean

COVID-19 and the Rise of Telemedicine

July 28, 2021 by Matías Busso - María Patricia González - Carlos Scartascini Leave a Comment


Telemedicine—the delivery of medical services through electronic means of communication—is potentially transformative, mitigating transportation problems, bringing care to rural communities and decreasing waiting times and medical costs.  But its adoption in Latin America has been slow. Insufficient communication infrastructure and status quo biases, among other factors, have hampered its use. Regulation has not caught up. As of 2019, while 65% of hospitals in Chile were using telemedicine, less than 30% of hospitals in Argentina, Costa Rica, Mexico, Peru and Colombia were doing so.     

The COVID-19 pandemic, however, was a shock to the system, making the virtues of telemedicine apparent. Argentina, among other countries, had long recognized telemedicine as pivotal in its strategy to ensure universal health coverage. After the onset of pandemic, it passed legislation to validate electronic prescriptions, and launched TeleCOVID, a public telemedicine service provider. By September 2020, the senate had approved a new bill that would regulate telemedicine going forward.

Consumers Respond to Telemedicine

Consumers also responded as mobility restrictions were introduced, as we reveal in a recent study of telemedicine during the COVID-19 crisis in Argentina, using data from Llamando al Doctor one of the main providers of telemedicine in the country.  Those restrictions dramatically increased the use of telemedicine, particularly among certain age and health groups, and may have opened the way to a broader acceptance of telemedicine post-COVID.    The impact of the restrictions surfaced the week of March 13. By March 15, 2020 the government had closed international borders and ordered schools to halt in-person classes. Five days later, it declared a total lockdown, resulting in a precipitous drop in mobility of all sorts. This can be seen in the figure below which uses data from various navigation software apps.

Figure 1: Change in Mobility in Argentina 2020 vs 2019

Notes: The figure plots indicators of mobility from different sources (scaled from 0 to 100). Congestion data were gathered from the IDB’s Coronavirus Impact Dashboard, driving and walking data were obtained from Apple’s mobility trend report, and public transit data were obtained from Moovit public transit indexes.

The use of telemedicine, meanwhile, increased dramatically as patients sought substitutes for in-person care. During the week of March 13, the total number of calls and the number of calls from first-time telemedicine users increased by 233% and 226% respectively and the number of calls resulting in prescriptions increased by 342%. As can be seen in Figure 2, this increase persisted during the subsequent months of lockdowns and even afterwards. Indeed, while telemedicine use declined slightly after restrictions were relaxed, it remained significantly higher than during the pre-pandemic period, indicating a potentially permanent shift towards acceptance of the innovative medical practice.

Figure 2: Estimated Weekly Changes in Telemedicine Demand

Note: The green line graphs the average trend for walking, driving and public transit mobility indicators as described previously. Blue dots correspond to the point estimates and confidence intervals. Source: Author’s own estimations using data provided by Llamando al Doctor.

A Shifting Demographic

It was not only the numbers of new users that marked a difference. The characteristics of telemedicine users also shifted. As can be seen in Figure 3, while patients using telemedicine during 2019 had an average age of 30 without underlying health problems, the substantial increase in its use during the pandemic was driven by patients 65 or older and those with pre-existing conditions, as positive experiences appeared to overcome previous biases and behavioral restraints to using a more virtual form of treatment.

Figure 3: Heterogenous Effects

Notes: The figure plots the coefficients estimating increase in number of calls for each different subgroup. Source: Author’s own estimations using data provided by Llamando al Doctor.

It is, of course, impossible to know for sure how durable these changes will be. Argentina, like much of Latin America, is still in the midst of the COVID-19 crisis with sustained social distancing measures. Moreover, we don’t have a proper control group, making past behavior the only available point of comparison. This complicated scenario leaves unanswered questions, particularly as to whether there have been other confounding factors that could have affected the demand for telemedicine during the pandemic.

Telemedicine’s Potential Payoffs in the Future

Still, our analysis seems to provide crucial insights into changes in healthcare use and uncover a previously hidden demand for telemedicine services with numerous potential payoffs for the future. Telemedicine during the pandemic has facilitated the screening of patients. It has helped to direct patients to the most suitable health provider, isolate those who might be infected by the virus, and increase the capacity of the health care system. If the increase in demand for telemedicine services persists, as we expect and hope, it could emerge long-term as a crucial tool for public health management that increases the accessibility of medical care and significantly reduces the travel time and costs in obtaining it.

Many kinks in the system will have to be worked out for this  to happen and for telemedicine to become more of a reality in the region, including as a service traded  across borders when the health care system in one or more country becomes overwhelmed. This includes the establishment of a more robust legal and regulatory framework as it relates to patient privacy, insurance and the licensing of practitioners. Nonetheless, one of the silver linings of the terrible COVID-19 tragedy may well be the widespread acceptance of a powerful new tool in healthcare and better patient outcomes, particularly among remote and underserved communities.


Filed Under: Microeconomics and Competitiveness, Social Issues Tagged With: #coronavirus, #COVID-19

Matías Busso

Matias Busso is a Lead Economist in the Research Department at the Inter-American Development Bank. He is also a Research Fellow at the Center for Distributive, Labor and Social Studies (CEDLAS) and a member of the executing committee of the Network of Inequality and Poverty of LACEA. His research uses empirical evidence and theory to inform the design of more effective public policies in areas related to labor, education, and productivity. Matias received his Ph.D. in Economics from the University of Michigan in 2008. He has published articles in the American Economic Review and The Review of Economics and Statistics, among others.

María Patricia González

María Patricia González is a research assistant in the Research Department of the Inter-American Development Bank. Her work focuses on the use of new technologies in the health sector. A native of Nicaragua, she holds a Bachelor’s in Economics from the University of Rochester, NY, and a Master’s in Economics and Public Policy from Adolfo Ibáñez University in Chile.

Carlos Scartascini

Carlos Scartascini is Head of the Development Research Group at the Research Department and Leader of the Behavioral Economics Group of the Inter-American Development Bank. He has published eight books and more than 60 articles in academic journals and edited volumes. He is a member of the Executive Committee of IDB's Gender and Diversity Lab, member of the Board of Advisors of the Master of Behavioral and Decision Sciences at the University of Pennsylvania, Associate Editor of the academic journal Economía, and Founding Member of LACEA's BRAIN (Behavioral Insights Network). A native of Argentina, Dr. Scartascini holds a Ph.D. and an M.A. in Economics from George Mason University.

Reader Interactions

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Primary Sidebar

Follow Us

Subscribe

Search

Related posts

  • Poor Health, Poverty and the Challenges of COVID-19 in Latin America and the Caribbean
  • Institutional Capacity and Trust: The Ingredients for Fewer Restrictions during the Pandemic
  • Ensuring Demand for COVID-19 Vaccinations
  • Inclusive Health Care in Latin America and the Caribbean: A Necessary Revolution
  • Coronavirus Restrictions Lead to Improvement in Air Quality

About this blog

The blog of the IDB's Research Department shares ideas that matter on public policy and development in Latin America and the Caribbean.

Footer

Banco Interamericano de Desarrollo
facebook
twitter
youtube
youtube
youtube

    Blog posts written by Bank employees:

    Copyright © Inter-American Development Bank ("IDB"). This work is licensed under a Creative Commons IGO 3.0 Attribution-NonCommercial-NoDerivatives. (CC-IGO 3.0 BY-NC-ND) license and may be reproduced with attribution to the IDB and for any non-commercial purpose. No derivative work is allowed. Any dispute related to the use of the works of the IDB that cannot be settled amicably shall be submitted to arbitration pursuant to the UNCITRAL rules. The use of the IDB's name for any purpose other than for attribution, and the use of IDB's logo shall be subject to a separate written license agreement between the IDB and the user and is not authorized as part of this CC- IGO license. Note that link provided above includes additional terms and conditions of the license.


    For blogs written by external parties:

    For questions concerning copyright for authors that are not IADB employees please complete the contact form for this blog.

    The opinions expressed in this blog are those of the authors and do not necessarily reflect the views of the IDB, its Board of Directors, or the countries they represent.

    Attribution: in addition to giving attribution to the respective author and copyright owner, as appropriate, we would appreciate if you could include a link that remits back the IDB Blogs website.



    Privacy Policy

    Copyright © 2025 · Magazine Pro on Genesis Framework · WordPress · Log in

    Banco Interamericano de Desarrollo

    Aviso Legal

    Las opiniones expresadas en estos blogs son las de los autores y no necesariamente reflejan las opiniones del Banco Interamericano de Desarrollo, sus directivas, la Asamblea de Gobernadores o sus países miembros.

    facebook
    twitter
    youtube
    This site uses cookies to optimize functionality and give you the best possible experience. If you continue to navigate this website beyond this page, cookies will be placed on your browser.
    To learn more about cookies, click here
    X
    Manage consent

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT