Impact of technological change on the cost of health service, Biology

Impact of Technological Change on the Cost of Health Service

Technological developments entail improvement in production/service frontiers either by providing cost benefit advantages with superior outputs (by replacing old products) or by providing new or improved products. However, the mix of products and services available in the market may raise the average cost of treatment with a consequent increase in the per capita health expenditure. This characteristic of technological development has led to a wide spread belief that technological change has accounted for the bulk of increase in medical cost over time. But such a conclusion does not necessarily follow as they have also resulted in new methods of diagnosis and treatment giving the benefit of increased longevity, improved quality of life, less absenteeism from work, etc. These benefits need to be duly weighed as the social benefits of technological advancements are very high.


Although the average cost of medical service increases with new developments in health services, with time and wider adaptivity of new methods, the cost of services tends to stabilise at an optimal level. In the meantime, however, lack of competition and other market failures inflate the cost of advanced medical facilities paving way for the medical insurance providers to gain ground in the market. Besides the angle of moral hazard associated with insurance coverage from the consumers side, the developments also provide opportunities for many medical malpractices (e.g., costly procedures advocated frequently). Thus, given the potential for misuse and the welfare of so many at stake, protecting the interests of consumers becomes an important responsibility of the governments.

Posted Date: 12/15/2012 5:55:19 AM | Location : United States







Related Discussions:- Impact of technological change on the cost of health service, Assignment Help, Ask Question on Impact of technological change on the cost of health service, Get Answer, Expert's Help, Impact of technological change on the cost of health service Discussions

Write discussion on Impact of technological change on the cost of health service
Your posts are moderated
Related Questions
Describe the concept of soil testing Different grades of complex and mixed fertilizers are being marketed to suit the soil and crops of a region. The recommendations are made o

Develop a hypothesis relating to the amount of dissolved oxygen measured in the water sample and the number of fish observed in the body of water.

Into which subphyla are the protochordates divided? What are some representatives of each protochordate subphylum? Urochordates (or tunicates) and cephalochordates are the two

Q. Illustrate about Sterilization protocol? Sterilization protocol includes proper transportation and cleaning of instruments followed by their packing. Items can be sterilized

How to Recognition of Congenital Heart Disease ? The manifestations of CE-ID are different in a neonate, an infant or a child. It is often easy to recognise the presence of CHD

Q. What are the special structures of the avian digestive tube and their respective functions? The crop has the function of temporary storage of ingested food and it is a more

Define Requirements of Chromium? There is no Recommended Dietary Allowance (RDA) for chromium but adequate intakes that can be used as a goal for individual intakes has been pr

Explain about Bioactive materials Bioactive materials: Certain glasses, ceramics, and glass-ceramics that contain oxides of silicon, sodium, calcium and phosphorus (SiO 2 , Na

Microorganisms that survived the preservation and shortage treatment applied to the food Different microorganisms have different susceptibility to the preservative methods empl

Q. Illustrate Natural and Phylogenetic Classification? Natural Classification Natural systems of classification reflect the situation as it might have existed in nature. T