Technological Development and Medical Productivity: The Diffusion of Angioplasty in New York State
49 Pages Posted: 7 Nov 2002 Last revised: 27 Jun 2012
Date Written: November 2002
Abstract
A puzzling feature of many medical innovations is that they simultaneously appear to reduce unit costs and increase total costs. We consider this phenomenon by examining the diffusion of percutaneous transluminal coronary angioplasty (PTCA) -- a treatment for coronary artery disease -- over the past two decades. We find that growth in the use of PTCA led to higher total costs despite its lower unit cost. Over the two decades following PTCA's introduction, however, we find that the magnitude of this increase was reduced by between 10% and 20% due to the substitution of PTCA for CABG. In addition, the increased use of PTCA appears to be a productivity improvement. PTCAs that substitute for CABG cost less and have the same or better outcomes, while PTCAs that replace medical management appear to improve health by enough to justify the cost.
Suggested Citation: Suggested Citation
Do you have negative results from your research you’d like to share?
Recommended Papers
-
Physician Financial Incentives and Cesarean Section Delivery
By Jonathan Gruber and Maria Owings
-
What are the Determinants of Delayed Childbearing and Permanent Childlessness in the United States?
By David E. Bloom and James Trussell
-
Fertility Timing, Wages, and Human Capital
By Mckinley L. Blackburn, David E. Bloom, ...
-
Tradeoffs from Integrating Diagnosis and Treatment in Markets for Health Care
By Chris Afendulis and Daniel P. Kessler
-
By David Meltzer and Jeanette Chung
-
By Robin Allen and Paul J. Gertler
-
Reforming Incentive Schemes Under Political Constraints: The Physician Agency
-
Marriage Patterns in the United States
By David E. Bloom and Neil G. Bennett