If I told you from 1989 to 2006 money spent on medical devices increased at a slower rate than the consumer price index would you believe me? Are we not bombarded every day how healthcare costs are spiraling out of control? So shouldn't devices be spiraling out of control? Not exactly. A May 2009 study, prepared by Gerald Donahoe and Guy King, F.S.A., M.A.A.A., titled Estimates of Medical Device Spending in the United States concludes the following:
"During much of the eighteen year period, 1989--2006, a significant driver of changed medical practice has been the development of new medical devices—from stents to implantable defibrillators to artificial hips and knees to new imaging modalities to new diagnostic tests to new surgical tools. In view of the conventional wisdom about the role of medical technology in driving up costs, it is surprising that the
cost of medical devices has risen little as a share of total national health expenditures. It is also striking that, unlike most other areas of medicine, the prices of medical devices have actually been growing more slowly not only than the MCPI(medical CPI) but than the CPI as a whole."
This is so different from what I have been hearing from the media incessantly. Why isnt't a distinction being made and better yet if Medical Devices can keep costs in check what are the drivers of the total spend increase and how can those be controlled. We need more and better information on this very important topic not just calls for blanket solution that could seriously hamper innovation.
Now this is just a portion of healthcare total spend. However, the next time someone comes harping the evils of the healthcare industry make sure to tell them how devices have done their part and will continue to do their part in keeping healthcare costs in check. The study can be accessed at: http://www.fdanews.com/ext/files/king%20report.pdf
