The lifetime costs and benefits of medical technology.

Abstract:

:Measuring the lifetime costs and benefits of medical technologies is essential in evaluating technological change and determining the productivity of medical care. Using data on Medicare beneficiaries with a heart attack in the late 1980s and 17 years of follow up data, I evaluate the long-term costs and benefits of revascularization after a heart attack. I account for non-random selection into treatment with instrumental variables; following McClellan, McNeil, and Newhouse, the instrument is the differential distance to a hospital capable of providing revascularization. The results show that revascularization is associated with over 1 year of additional life expectancy, at a cost of about $40,000. Revascularization, or other treatments correlated with it, appears to be highly cost-effective.

journal_name

J Health Econ

authors

Cutler DM

doi

10.1016/j.jhealeco.2007.09.003

subject

Has Abstract

pub_date

2007-12-01 00:00:00

pages

1081-100

issue

6

eissn

0167-6296

issn

1879-1646

pii

S0167-6296(07)00058-6

journal_volume

26

pub_type

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