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 Econjournal_title
Journal of health economicsauthors
Cutler DMdoi
10.1016/j.jhealeco.2007.09.003subject
Has Abstractpub_date
2007-12-01 00:00:00pages
1081-100issue
6eissn
0167-6296issn
1879-1646pii
S0167-6296(07)00058-6journal_volume
26pub_type
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