The present chapter gives an overview on economically relevant factors to be considered when planning to introduce telemedicine. The chapter covers the aspects of constraints, cost/benefits and possible indications for a widespread telemedicine use based on market demand and user needs as well as a comprehensive model for strategic planning. Failure to design telemedicine policies is an outstanding problem discussed in detail in the sections on re-engineering and hospital management. The rules of strategic planning and the process of formulating strategies and making decisions will be described.