Telemedicine journal and e-health : the official journal of the American Telemedicine Association
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This article examines the effect of telecare on medical expenditures for chronic diseases using survey data from Nishi-aizu Town, Fukushima Prefecture, Japan. The study uses the propensity score matching (PSM) method, a rigorous analytical method that overcomes sample selection bias, a common problem when using survey data. ⋯ Using PSM to compare subjects in two groups with similar characteristics except for their use or nonuse of telecare, we demonstrated that the treatment group has lower medical expenditures for chronic diseases than the control group. Proper matching is important in evaluating the impact of telecare interventions. Limitations of PSM include its requirement for a large number of samples and the limited ability to explain why and how telemedicine produces these effects. Other empirical methods are required to identify the mechanism of how telemedicine works.