Technological Development and Medical Productivity: The Diffusion of Angioplasty in New York State / David M. Cutler, Robert S. Huckman.

Format:

Book

Author/Creator:

Cutler, David M.

Contributor:

National Bureau of Economic Research.

Huckman, Robert S.

Series:

Working Paper Series (National Bureau of Economic Research) no. w9311.

NBER working paper series no. w9311

Language:

English

Physical Description:

1 online resource: illustrations (black and white);

Other Title:

Technological Development and Medical Productivity

Place of Publication:

Cambridge, Mass. National Bureau of Economic Research 2002.

Summary:

A puzzling feature of many medical innovations is that they simultaneously appear to reduce unit costs and increase total costs. We consider this phenomenon by examining the diffusion of percutaneous transluminal coronary angioplasty (PTCA) -- a treatment for coronary artery disease -- over the past two decades. We find that growth in the use of PTCA led to higher total costs despite its lower unit cost. Over the two decades following PTCA's introduction, however, we find that the magnitude of this increase was reduced by between 10% and 20% due to the substitution of PTCA for CABG. In addition, the increased use of PTCA appears to be a productivity improvement. PTCAs that substitute for CABG cost less and have the same or better outcomes, while PTCAs that replace medical management appear to improve health by enough to justify the cost.

Notes:

Print version record

November 2002.