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
What is Bilateral Symmetry system? To review: all animals besides the sponges (Phylum Porifera) belong to the Eumetazoa. There are two groups within the Eumetazoa that possess

what is detergent pollution and it''s effects and causes

Explain cigrates smoking from lifestyle risk factors ? Smoking is the single most important preventable risk factor for CAD. There is strong evidence that smoking can significa

Blood Pump :  Ideal Characteristics 1) I should be able to pump up to seven litres of blood per minute. 2) It should not damage cellular and cellular components of blo

Q. Asymptomatic or Mildly Symptomatic Patients? The treatment is controversial. Some give them betablockers/or calcium channel blockers like verapamil, in the hope of preventin

Birth of Genetics Modern genetics originated with Gregor Mendel's work. It is based on this paper entitled "Experiments in Plant Hybridisation " published in 1866 inqthe Procee

Cyanotic Heart Disease In  this there is a communication between Pulmonary and systemic circulation through which venous blood enters the systemic circulatory system. The infa

Explain the Prevalence of Iodine Deficiency Disorders? We can determine the prevalence of IDD by conducting population surveys. Most of the population surveys are based on clin

Q. What are the "chiasms" of homologous chromosomes observe in prophase I? Chiasms are intersections of two tracts in the form of X, The chiasms seen in prophase I are chromoso

Avian (fowl cholera) Fowl cholera is a contagious septicaemic disease of almost all classes of fowl. The causal agent is Pasteurella multocida.Serotypes A:1 and A:3 are usually