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
Q. Explain Clinical Manifestations of cardiomyopathy? 1) Asymptomatic, when the diagnosis is made by 2D Echocardiography. 2) Enlargement of LV. Apex is shifted down and out.

Define role of Vitamin K in controlling gene expression? Prithrombin, a protein required for blood clotting is assembled with a large number of glutamic acid residues. In the p

Explain the Kidney Structure in human biology? The body's two kidneys are located in the small of the back, one behind the stomach and one behind the liver. Each kidney is comp

Q. Assume the gene for dimples, d, is recessive. Then assume that two individuals with the genotypes Dd and dd mate. Create a Punnett square for this mating and state the probabili

Q. Vitamins and minerals requirement in diabetes? The recommendation of vitamins and minerals is the same as for general population. However, lower levels of magnesium are ass

flying fish,cuttlefish,silverfish - pisces are correctly matched with taxonomic classification

How can the concept of recombination frequency be used in genetic mapping? The Genetic mapping is the determination of the location of the genes in a chromosome. Besides determ

Define working of Body surface in excretion of zinc in human? Loss of zinc occurs due to the exfoliation of skin and sweating (0.7 -1.0 mg/day). Another route of zinc loss is h

What are the advancement of cnidaria over protozoa

The test for limestone You can check the rock samples to see if any are limestone by dropping lemon juice, vinegar or some other dilute acid on them. If any are limestone they