An assessment was undertaken of a routine telepsychiatry service in rural a
reas of a Canadian province as a follow-up to a pilot telepsychiatry projec
t. Over two years, there were 546 consultations at the five participating g
eneral hospitals, although the level of use varied considerably between the
m. Health professionals expressed high satisfaction with the service. While
there were equipment problems in 17% of all consultations in the second ye
ar, they did not seem to affect acceptance of the technique. A cost analysi
s comparing consultations provided by a visiting psychiatrist and telepsych
iatry found a break-even point of 348 consultations a year. However, when u
se of the videoconferencing network for administrative meetings was conside
red, the break-even point was 224 consultations a year, substantially below
the actual utilization of telepsychiatry. Telepsychiatry appeared to resul
t in increased access to community mental health services, suggesting futur
e increased demand for these. From the perspective of health authorities an
d health professionals, telepsychiatry proved to be a useful and sustainabl
e addition to existing mental health services.