Consumer Response to Virtual Service Organisations: The Case of Telemedicine

Telemedicine provides an interesting example of the impact that new information technologies are having on the practice of medicine. Rather than being a simple application of information technology, telemedicine transforms the traditional doctor and patient encounter to create an innovative class of virtual organisations that provides health care service to its consumers outside the constraints of time and space. As with many innovations, consumer response will in part determine their ultimate effectiveness. After describing the concept of virtual service organisations, this paper explores consumer perceptions and acceptance of such services in two US rural communities, where healthcare delivery by telemedicine could be cost-effective.