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Challenges to Value-Enhancing Innovation in Health Care Delivery: Commonalities and Contrasts with Innovation in
Rand Health Quarterly
|January 14, 2017
Summary
U.S. policymakers face the challenge of controlling healthcare costs while improving population health. The authors propose distinguishing valuable innovations from costly ones to balance these goals.
Area of Science:
- Health economics
- Health policy
- Innovation studies
Background:
- Controlling U.S. healthcare costs and improving population health are critical policy challenges.
- Innovation's role in healthcare is debated: a driver of costs versus a necessity for quality improvement.
Purpose of the Study:
- To propose a nuanced perspective on healthcare innovation for policymakers.
- To differentiate between innovations with positive and negative social cost-benefit ratios.
Main Methods:
- Analysis of innovation in drugs, medical devices, and healthcare delivery methods.
- Examination of the tension between healthcare cost containment and quality enhancement.
Main Results:
- Innovation is viewed as both a cause of cost growth and essential for better health outcomes.
- A framework is needed to identify and encourage socially valuable innovations.
Conclusions:
- Mitigating the conflict between healthcare cost control and health improvement requires careful evaluation of innovation.
- Policymakers should actively encourage innovations that offer positive social value and discourage those that do not.
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