Technology and Rationing in Health Care
According to most economists, the adoption of new technology has accounted for the largest increase in health care costs between the post-World War II period and the early 1990s [Joseph P. Newhouse, “Medical Care Costs: How Much Welfare Loss?” Journal of Economic Perspectives, Summer 1992, pp. 3–21]. At the same time, technology has provided new sight and hearing capabilities, enhanced physicial mobility, and has added to the possibilities to extend and improve the quality of life. The increase in the costs of technology may mean considering ways to implicitly and explicitly ration health care services, some of which were introduced by new technology. This chapter, therefore, combines health care technology with the essential economics of health care rationing.
KeywordsMarginal Cost Health Care Cost Health Care Expenditure Marginal Benefit Manage Care Plan
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