Related Experiment Video
Updated: Jul 1, 2026
07:13
Digital Home-Monitoring of Patients after Kidney Transplantation: The MACCS Platform
Published on: April 12, 2021
Cost-reducing innovation in health care
James C Robinson1, Mark D Smith
1University of California, Berkeley, USA. james.robinson@berkeley.edu
Health Affairs (Project Hope)
|September 11, 2008
Summary
Moderating healthcare spending requires innovative products and processes, not just lower payment levels. Focus on cost-reducing innovations in materials, staff, equipment, and care sites to overcome rising health care costs.
Area of Science:
- Health Economics
- Healthcare Innovation
- Health Policy
Background:
- Rising healthcare expenditures challenge health insurance coverage expansions.
- Current cost-containment strategies focus on payment reductions for existing services, which are unlikely to succeed due to established costs and expectations.
Discussion:
- Cost moderation necessitates novel products and processes utilizing lower-cost resources.
- Examples include innovations in materials, staffing models, equipment, and alternative care delivery sites.
Key Insights:
- Shifting focus from payment reduction to innovation is crucial for sustainable cost control.
- New approaches are needed to address the fundamental drivers of healthcare spending.
Outlook:
- Overcoming regulatory, payment, insurance, and policy obstacles is essential for the diffusion of cost-reducing innovations.
- Future efforts should prioritize fostering an environment conducive to healthcare innovation.
Related Concept Videos
01:29Issues And Trends In Healthcare Delivery System
The issues and trends in healthcare delivery are constantly changing. The COVID-19 pandemic is one recent issue that wreaked havoc on healthcare systems, causing a shortage of healthcare workers, high demand for medicines and supplies, and increased medical expenditure due to a lack of insurance. Other issues include rising healthcare costs and care fragmentation.
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
Cost Containment
Payment for healthcare services has historically promoted adoption of costly and often unnecessary or inefficient...
01:26Methods Of Healthcare Delivery System
At the different levels of the healthcare system, we see varying methods of healthcare used. These methods include managed care systems, case management, and primary healthcare.
Managed Care System:
The managed care system is designed to control the cost while maintaining the quality of care. The patient's care from admission to discharge is planned by the primary care provider or the case manager, also known as the gatekeeper. In a managed care system, the number of care providers is limited...
Managed Care System:
The managed care system is designed to control the cost while maintaining the quality of care. The patient's care from admission to discharge is planned by the primary care provider or the case manager, also known as the gatekeeper. In a managed care system, the number of care providers is limited...
01:30Health Information Technology and Healthcare Information System
Health Information Technology (HIT)
Health Information Technology, commonly called HIT, integrates advanced information systems and technology in healthcare settings. Its primary functions include:
Health Information Technology, commonly called HIT, integrates advanced information systems and technology in healthcare settings. Its primary functions include:
01:18Introduction To Health Care Delivery System
The healthcare system is constantly changing and complex. Various services are available from different healthcare providers, but gaining access to these services has become challenging for people with limited healthcare insurance. Uninsured people present a challenge to healthcare because they frequently postpone or forego treatment.
The Institute of Medicine (IOM) advocates for a patient-centered, effective, safe, timely, equitable, and effective healthcare system. The National Priorities...
The Institute of Medicine (IOM) advocates for a patient-centered, effective, safe, timely, equitable, and effective healthcare system. The National Priorities...
01:22Healthcare Associated Infections II: Preventive Measures
Essential infection prevention measures are based on the knowledge of the infection chain, the modes of transmission in healthcare settings, and the use of the best practices in all healthcare settings. Compulsory public reporting of healthcare-associated infection rates is needed to allow individuals and the community to make informed choices regarding selecting a healthcare facility.
The best practices for preventing healthcare-associated infections include hand hygiene, patient risk...
The best practices for preventing healthcare-associated infections include hand hygiene, patient risk...
01:30Preventive Healthcare Services
Preventive healthcare services keep people healthy via frequent check-ups, screening, and counseling. They primarily aid in disease prevention rather than treating an acute or chronic illness. Preventive treatment also keeps individuals productive and energetic, allowing them to work well into their retirement years. Examples of preventive care services include: