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Can technology assessment control health spending?

A M Garber

    Health Affairs (Project Hope)
    |January 1, 1994
    PubMed
    Summary

    Controlling health spending growth requires managing medical technology adoption. Cost-effectiveness analysis is a key tool for assessing technologies and curbing healthcare costs.

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    Area of Science:

    • Health Economics
    • Health Technology Assessment
    • Healthcare Policy

    Background:

    • Medical technology is a primary driver of escalating healthcare spending.
    • Widespread health insurance adoption has accelerated medical technology dissemination.
    • Technology dissemination directly contributes to increased healthcare expenditures.

    Purpose of the Study:

    • To examine the link between health insurance, medical technology adoption, and spending growth.
    • To explore various technology assessment methods.
    • To advocate for cost-effectiveness analysis (CEA) as a tool for controlling healthcare spending.

    Main Methods:

    • Literature review on health insurance, technology dissemination, and spending trends.
    • Description of different technology assessment approaches.
    • Conceptual application of CEA to healthcare technology evaluation.

    Main Results:

    • Health insurance facilitated the rapid spread of medical technologies.
    • This dissemination of technology has been a major factor in rising healthcare costs.
    • Cost-effectiveness analysis offers a structured method for evaluating new technologies based on value.

    Conclusions:

    • Technology assessment, particularly CEA, is crucial for managing healthcare spending.
    • Effective strategies for limiting spending growth must address technology dissemination.
    • Integrating CEA into healthcare policy can promote value-conscious adoption of medical innovations.

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