Health care costs are a longstanding concern to policymakers. For years, health care spending has been rising faster than the rate of economic growth, raising the question of what factors are responsible for rising health care costs. This paper explores published articles that report results from research conducted on technological innovations in health care and its relation to rising health care costs. The cost increases have a significant effect on households, businesses, and government programs. Health care experts indicates the development and diffusion of medical technology as primary factors in explaining the persistent difference between health spending and overall economic growth, with some arguing that new medical technology may account for about one-half or more of real long-term spending growth. Rising health care expenditures lead to the question of whether we are getting value for the money we spend. On an average, increases in medical spending as a result of advances in medical care have provided reasonable value. An alternative viewpoint holds that although new technologies represent medical advances, they are prone to overuse and thereby excess cost. Most of the suggestions to slow the growth in new medical technology in the U.S. focus on cost-effectiveness analysis. However, there are other issues that include, whether money would be saved by reducing costly technology where marginal value is low and how to monitor the cost impact and whether a cost containment approach would discourage technological innovation.
The Role of Technology in Rising Health Care Costs.
What should or shouldn’t be done.
For nearly all of the past four decades, spending on health care in the United States grew more rapidly than the economy. As a result, the share of national income devoted to health care nearly tripled. This ongoing spending growth pervaded... [continues]
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"The Role of Technology in Rising Health Care Costs. What Should or Shouldn’t Be Done.." StudyMode.com. 04, 2011. Accessed 04, 2011. http://www.studymode.com/essays/The-Role-Of-Technology-In-Rising-671945.html.