Are Health-Care Costs Rising Because of New Medical Technology?
health-care spending is about $7000 in 2005 and projected to reach $12,300 in 2015 (National Health Statistics Group, http://www.cms.hhs.gov/NationalHealthExpendData/ ). Health-care experts believed that the development and diffusion of new medical technologies account for at least of half of long-term health-care spending growth. Example of applications of advanced technologies to health care include: -new medical and surgical procedures (e.g., angioplasty, joint replacements) -drugs (e.g., biotech products, biologics) -medical devices (e.g., CT scanners, MRI, virtual colonoscopy, defibrillator) -diagnostic tests (e.g., DNA screening) -information technology (e.g., electronic medical records, telemedicine) These new technologies have contributed to improvements in patient care as well as saving lives. But, they also contribute to the rising costs of health care. According to Rettig (Medical Innovation Duels Cost Containment,Health Affairs 15, 1994), new medical technologies affect the
