Optimal Location of a Remote Dental Unit
Location
Online
Event Website
https://hicss.hawaii.edu/
Start Date
3-1-2022 12:00 AM
End Date
7-1-2022 12:00 AM
Description
Dental care, though critical, is not accessible for the rural population. Remote dental units can address the gap in access by providing basic services to rural areas, but their economic viability is not clearly established. In this research, we explore the economics of a major hospital operating a remote unit in a distant rural area. Specifically, we characterize the optimal location of the remote unit and examine the impact of operating a remote dental unit on the profit of a dental hospital. The ideal scenario, from a patient coverage perspective, is to put the remote unit location far enough away that patients accessing the remote unit are distinct from patients accessing the main hospital center to avoid redundancy (market cannibalization). However, we show that such a placement may not always be optimal for the hospital’s profit and derive conditions under which the optimal patient coverage for the hospital and the remote unit overlaps. Our findings lead to policy implications for dental care reimbursement and service expansion. We also offer insights for dental care providers who are considering adding a remote unit to serve patients in more distant regions.
Optimal Location of a Remote Dental Unit
Online
Dental care, though critical, is not accessible for the rural population. Remote dental units can address the gap in access by providing basic services to rural areas, but their economic viability is not clearly established. In this research, we explore the economics of a major hospital operating a remote unit in a distant rural area. Specifically, we characterize the optimal location of the remote unit and examine the impact of operating a remote dental unit on the profit of a dental hospital. The ideal scenario, from a patient coverage perspective, is to put the remote unit location far enough away that patients accessing the remote unit are distinct from patients accessing the main hospital center to avoid redundancy (market cannibalization). However, we show that such a placement may not always be optimal for the hospital’s profit and derive conditions under which the optimal patient coverage for the hospital and the remote unit overlaps. Our findings lead to policy implications for dental care reimbursement and service expansion. We also offer insights for dental care providers who are considering adding a remote unit to serve patients in more distant regions.
https://aisel.aisnet.org/hicss-55/os/digital_transformation/6