Impact of Telemedicine on Health Expenditures During the COVID-19 Pandemic in Japan: Quasi-Experimental Study

The study assessed the impact of increased telemedicine use on health expenditures and outcomes in Japan during the COVID-19 pandemic, using a quasi-experimental design with a population of 126 million. Prefectures with higher pre-pandemic telemedicine rates saw a threefold increase in telemedicine use post-2020, leading to a 1.0% relative decrease in total health expenditure and a 1.1% decrease in inpatient expenditure, while outpatient expenditures remained unchanged. Importantly, there were no significant changes in health outcomes such as all-cause mortality and key health indicators. The findings suggest that expanding telemedicine can reduce healthcare costs without negatively affecting health outcomes.