Redirecting innovation in US health care: options to decrease spending and increase value – RAND Health – 2014
“A leading cause of high and growing spending is new medical technologies. Previous studies aimed at reining in spending considered changing the ways in which existing technologies are used. Our work for this project focused on identifying promising policy options to change which medical technologies are created in the first place, with
these two related policy goals:
1. Reduce total health care spending with the smallest possible loss of health benefits.
2. Ensure that new medical products that increase spending are accompanied by health benefits that are worth the spending increases.
These goals reflect our definition of the “value” of a medical technology, which compares the increase in population health from using it to the extra spending attributable to its use. A medical product can have large health benefits for some patients and little or no benefit for others. Thus, a key issue for increasing value is improving the alignment between products and patients who will benefit from them.We define medical technology broadly to include all applications of knowledge to practical medical problems. However, in this study we focused more narrowly on medical products, specifically drugs, devices, and health information technology (HIT).”