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Does new technology increase or decrease health care costs? The treatment of peptic ulceration.

S Murphy1

  • 1Department of Social Medicine, University of Bristol, UK.

Journal of Health Services Research & Policy
|September 4, 1998
PubMed
Summary
This summary is machine-generated.

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New medical technology for peptic ulcers initially increased costs but current Helicobacter pylori eradication is cheaper. Overall, technology

Area of Science:

  • Health Economics
  • Medical Technology Assessment
  • Gastroenterology

Background:

  • Formal health care costs associated with diagnosing and treating peptic ulcers are influenced by technological advancements.
  • Previous studies have not definitively concluded whether new medical technologies generally increase or decrease health care expenditures.

Purpose of the Study:

  • To determine the impact of new medical technology on formal health care costs for peptic ulcer diagnosis and treatment.
  • To develop a costing methodology to directly assess technology-driven cost changes in healthcare.

Main Methods:

  • A novel costing method was developed to track changes in formal health service costs for diagnosing and treating individual illnesses.
  • The method was applied to analyze the cost evolution in peptic ulcer care through different technological phases.

Related Experiment Videos

Main Results:

  • Diagnostic costs increased due to the higher expense of endoscopy compared to traditional X-ray examinations.
  • Introduction of H2-receptor antagonist drugs raised treatment costs relative to earlier surgical interventions.
  • Subsequent implementation of Helicobacter pylori eradication therapy significantly reduced treatment costs compared to all preceding technologies.

Conclusions:

  • A new methodology enables investigation into how medical technology changes affect formal health care costs for specific illnesses.
  • Current peptic ulcer treatment, utilizing H. pylori eradication, demonstrates lower costs than all previous treatment technologies.
  • Insufficient evidence exists to generalize that new technology universally increases or decreases overall health care costs.