Preview

Technology in Health

Powerful Essays
Open Document
Open Document
5083 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Technology in Health
Technology and Health Policy: Rapid Technology Diffusion and Policy Options in Korea

Soonman Kwon, Ph.D.
Seoul National University, Korea

I. Introduction

Health care providers in Korea depend heavily on high-technology medical care, contributing to the health care cost inflation. This paper aims to examine the current status of medical technology diffusion, its causes and consequences, and policy options to rationalize the use of medical technology and contain related costs. It reviews both theoretical issues associated with medical technology in general and the policy issues of Korea along with a few OECD countries. Korea has experienced a very rapid diffusion of high-tech medical devices, brand-name original drugs and medical procedures due to the financial incentive of providers associated with the fee-for-service system, dominance of private for-profit providers of health care, and the lack of regulation on the adoption of medical technology. Since the rapid diffusion of medical technology is driven by providers rather than consumers, public policy should focus on health care providers who play a role in the patients’ utilization of medical technology and related expenditure.

II. Health Care Technology and Diffusion

Medical technology has played an increasingly important role in health care. Technological developments in drugs, physical capital or high-tech devices (MRI, CT, ESWL, etc.), and new procedures such as bypass surgery or catheterization for AMI patients have led to the rapid increase in the utilization of those services. New high-tech medical devices, brand-name drugs and medical procedures contribute to better health outcomes and improved quality of life. At the same time, heavy reliance on high-technology medical care results in the increase in the intensity of care for a given episode of illness or for a given treatment day.

Technological development is always regarded as good and beneficial to the industry and society. However,



References: Bae, E., Pharmaceutical Pricing in Korea, Korea Institute of Health and Social Affairs, 2001, Seoul. Danzon, P., and L. Chao, “Cross-national price difference for pharmaceuticals: How large and why?” Journal of Health Economics 19:2, 2000, 159-195. Davis, P., Managing Medicines: Public Policy and Therapeutic Drugs, 1997, Philadelphia: Open University Press. Finkler, S., Cost Accounting for Health Care Organizations, 1993, Aspen. Grabowski, H., and J. Vernon, “Brand loyalty, entry, and price competition in pharmaceuticals after the 1984 drug act,” Journal of Law and Economics 35:2, 1992, 331-350. Koenig, H., “Diffusion of High-Cost Medical Devices: Regulations in Four European Union Member States,” in R. Leidl edit, Health Care and its Financing in the Single European Market, 1998, Amsterdam: IOS Press, 150-166. Kwon, S., “Pharmaceutical Reform and Physician Strikes in Korea: Separation of Drug Prescribing and Dispensing,” Social Science and Medicine 57:3, 2003, 529-538. [pic] Source: National Statistical Office (2004); Ministry of Health and Welfare (2004). Source: National Statistical Office (2004); Ministry of Health and Welfare (2004).

You May Also Find These Documents Helpful

  • Good Essays

    There was a growth of 2% in the sales of retail drug industry of the US. This is because; the retail segment has been growing at a steady pace for the last few years due to the positioning of healthcare products and services in the market (Redman, 2011). The positioning of drug stores in the market is well organized due to the presence of low average ticket, convenient locations, inflation, and flow of pharmacy traffic.…

    • 1293 Words
    • 6 Pages
    Good Essays
  • Good Essays

    prescription drug market share, and prescription sales per store, and first on the list of Global…

    • 277 Words
    • 2 Pages
    Good Essays
  • Powerful Essays

    Pros And Cons Of Obamacare

    • 1325 Words
    • 6 Pages

    companies are charging more in the United States for medication than they do in other…

    • 1325 Words
    • 6 Pages
    Powerful Essays
  • Satisfactory Essays

    Assignment1 Copy

    • 4284 Words
    • 13 Pages

    Gooi, M., & Bell, C. (2008). Differences in generic drug prices between the US and Canada. Applied Health Economics And Health Policy, 6(1), 19-26.…

    • 4284 Words
    • 13 Pages
    Satisfactory Essays
  • Powerful Essays

    Provider Consolidation Paper

    • 3976 Words
    • 16 Pages

    The shift in healthcare consolidation is to one of systematic care. Products must add value not only to the patient and their unmet need but also to the unmet need of the system as a hole. There is an opportunity for pharmaceuticals to compete on a more complete value picture. As consolidated healthcare providers become responsible for episodes of care they may become less price sensitive CITATION Hea13 \l 1033 (Healthcare Economics Editorial Board, 2013). The price sensitivity is different for each disease, but understanding how this price sensitivity is relevant to the various areas of care will be critical for the pharmaceutical industry. Price sensitivity will be, in part, determined by the nature of the consolidation. Understanding these price sensitivities by category and attribute will allow pharmaceutical companies to build endpoints in clinical trials that create a proper value proposition for cost conscious consolidate healthcare provider networks.…

    • 3976 Words
    • 16 Pages
    Powerful Essays
  • Better Essays

    The history and economics in health care can be traced back to the late 1890’s, but became prevalent in the 1930’s. Over the course of the last century health care industry has evolved to multi-billion dollar industry. This evolution can be attributed to managed care and third party payee systems. The cost of care has been the forefront for debate for over the last two decades in the United States. The cost of care has rising so dramatically some Americans are unable to receive coverage for the health needs. After researching health care economics, a timeline of this evolution is apparent.…

    • 880 Words
    • 4 Pages
    Better Essays
  • Good Essays

    Healthcare is an everyday thing to Americans now in the Twenty-first Century but before the 1900’s this would have been a totally different concept. Economics is the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of mankind. There are several different reasons that healthcare economics have changed but the most substantial reason would be the supply and demand of care. This paper is going to discuss the history and the evolution of health care and supply a timeline showing where the certain aspects of health care history came in.…

    • 790 Words
    • 4 Pages
    Good Essays
  • Better Essays

    Terms Comparison Paper

    • 1007 Words
    • 3 Pages

    Economics is often described as the “theory of choice,” and health economics is about the choices people make with regard to health, choices medical providers make in order to care for people and earn money, and choices made collectively (by Congress, community groups, or professional associations). Economy is driven by money. There will exchange of money for services rendered and purchase of goods. In this day and age, you no longer are able to get goods or services by offering the seller a type of service or some other type of goods in exchange. Today’s time the equal barter of trade is a thing of the past. According to Getzen (2007, p. 2), "money drives the health care system just as it does many other activities in a modern industrial society". In this paper, we will identify these terms usually used in economics and health care. We will compare these terms and differentiate what it may mean in health care economics. The terms used for this purpose are Trades, Cost, Resource and Technology.…

    • 1007 Words
    • 3 Pages
    Better Essays
  • Best Essays

    Martin, Jared. "United States Prescription Drug Crisis." Journal of Legal Medicine 27.4 (2006): 477-492. Academic Search Premier. EBSCO. Web. 2 May 2011.…

    • 1975 Words
    • 8 Pages
    Best Essays
  • Better Essays

    Health Care Reform Project

    • 1042 Words
    • 3 Pages

    Openshaw, M. (2005). The Economics of Prescription Drug Price, Government Intervention and the Importation of Drugs from Canada. Nursing Economic, 23(6), 307-311.…

    • 1042 Words
    • 3 Pages
    Better Essays
  • Good Essays

    Health Care Innovation

    • 583 Words
    • 3 Pages

    References: Barbash, M.D, G., & Giled, Ph. D., S. A. (2010, August). New Techonolgy and Health Care Cost. Retrieved from http://www.nejm.org/doi/full/10.1056/NEJMp1006602…

    • 583 Words
    • 3 Pages
    Good Essays
  • Better Essays

    Cost Of Health Care

    • 1590 Words
    • 7 Pages

    Here in the United States, new medical technology is responsible for half of the growth in health care costs. As new and more effective medical procedures, drugs, and technologies are introduced into the market, the demand grows and more money is invested in them. The money is invested by the government, manufacturers, private investors, and in a minor scale by the health insurers. All the health care benefits and investments are the motivation for technological research and development to continue and accelerate in order to generate more profit (Fuchs & Garber:…

    • 1590 Words
    • 7 Pages
    Better Essays
  • Better Essays

    More specifically, it has changed the way doctors’ tackle the life threatening cardiovascular disease. The use of technology and methods for treating this disease has evolved to its current status, with dramatically lower mortality rates then before. It also questioned how technological change in medicine has affected and varied in different countries around the world. Researchers have done cross-national comparisons. This paper also had to come to the conclusion that the differences trace to economic and regulatory incentives (“Technological Change”, n. d.). Another question was what affects technological changes. By comparing data from credible sources worldwide, researchers also came to the conclusions that technological changes are affected by national health policies as medical spending has increased everywhere. Incentives that differ in every country also affect the rate and quality of technological change. For example, there is a strong correlation with higher reimbursement and effective treatment. It has said that “supply- side” incentives are important for technological changes (McClellan and Kessler, 1999). This research has led to a key discovery that humans are incredibly intelligent to have come so far in such a short amount of time. Also, came to the conclusion that all the great revolutionary inventors of those technologies all had the deep desire to change the face of medicine and ultimately the health of humans everywhere. Each wanted to make the treatment of patients better. The only real difference is that they came from many different parts of the world. The only gap or thing left to answer is the issue regarding the appropriate and efficient use of the technology being used by medical personnel. From here on out, researchers are continuing to do more researching, learning, and growing to keep improving. Through more…

    • 2035 Words
    • 9 Pages
    Better Essays
  • Satisfactory Essays

    Shi, Leiyu &Singh A. D. (2008). Delivering health care in America: A system approach 4th…

    • 434 Words
    • 2 Pages
    Satisfactory Essays
  • Powerful Essays

    In recent times, healthcare has been revolutionized by technology. Modern healthcare relies heavily on a number of electronic gadgets. These gadgets can take the blood count of a patient to keeping them alive through heart-lung machines. Telemedicine has now come into its own. The delivery of healthcare and exchange of data across vast distances through the transfer of basic patient information such as CT scans, MRI pictures, ultrasound studies and pathology reports have become acceptable everywhere. Marketing professionals in the healthcare sectors adopt novel ways of reaching out to patients by using technology. Internet marketing is also popular, as websites enable patients to locate physicians or sign up for health screening. Another development relates to condition-specific information made available through the Internet. This includes ailments such as arthritis, diabetes and asthma. Marketing strategies in healthcare take different dimensions. Sustained efforts at quality improvement are vital in healthcare sector. Information systems help by providing doctors with laboratory values and by calculating weight-based doses of medicine. Using such tools can reduce possible diagnostic and treatment errors in many clinical settings. Electronic medical records serve to promote internal, external, and interactive marketing efforts by healthcare organizations. Considering innovation, the first indigenous heart valve developed by an institute of national importance based in Trivandrum (Kerala) deserves notice. Ultimately, the aim must be to make medical care affordable to the common man and cost-effective for the healthcare organization. Total Quality Management (TQM) has now assumed importance and this is evident from the efforts made by hospitals to get accredited by reputed agencies. As a result of the technological innovations leading to quality enhancement in the healthcare sector, healthcare marketing has also undergone…

    • 1788 Words
    • 8 Pages
    Powerful Essays