E-health as a tool for narrowing information asymmetry in health care
Unlike the guidelines of the neoclassical economic theory that assumes perfect information on both sides of the market and perfect certainty in the outcomes of market activities, healthcare markets are characterized, among other, by uncertainty associated with determining the appropriate level of medical care and information and knowledge asymmetry. Physicians are at the advantage in relation to their patients, because of superior information on the patients’ medical condition and knowledge of most helpful treatments. In addition, the extent of the information and knowledge asymmetry, along with agency costs of acquiring relevant information, is likely to increase as the complexity of patient’s medical condition increases. One of the significant benefits of implementing information technologies in healthcare is addressing the issue of information and knowledge asymmetry. Throughout many developed national health services, extensive e-health infrastructures and systems are now viewed as central to the future provision of safe, efficient, high-quality and citizen-centered health care by making the knowledge bases of medicine and personal electronic records accessible to consumers over the Internet.