Impact of Technological Changes on the Economics of Health Care

Impact of Technological Changes on the Economics of Health Care

Introduction

With the cost of healthcare increasing at a rapid pace, in 1970 the amount spent on healthcare was $75 billion; however, this figure rose to $2 trillion in 2005 and is expected to double by 2015. This rapid increase in cost has led to the demands for implementation of policies whereby these costs could be kept to a minimum. Most healthcare professionals believe that the increasing use of technology in healthcare is responsible for this increase in costs.

The use of Medical Technology

Medical technology can be referred to the processes, equipment, and procedures through which healthcare is delivered to patients. These include new support systems such as telemedicine, electronic medical records and transmission of information; medical devices such as, implantable defibrillators, and CT scanners; drugs such as biological agents; and surgical procedures such as joint replacement and angioplasty. These days almost all medical procedures include the use of technology in order to make the procedure effective and efficient (Spekowius & Wendler, 2007).

Medical technology has led to several major changes to the provision of healthcare. For instance, treating heart diseases was considered one of the most difficult procedures. However, the introduction of technology for the treatment of heart diseases in the 70's changed the way diseases are treated. Surgeries that were not practical in the past became common and the number of deaths resulting from heart diseases halved which means that the use of technology has had a major impact.

Another example of the use of technology in healthcare was the treatment of pre-term babies. Before the 90's, there was very little that could be done to save babies with complications. However, the development of artificial pulmonary surfactant, special ventilators and other equipment made it possible to help babies develop vital organs that did not develop properly during birth (Kabene, 2010).

Impact of Technology on Costs

There are two views about the cost of healthcare when technology is being used. According to some, technology has increased the cost of healthcare while some claim that although technology is expensive, since patients can be treated in a shorter time, the use of technology has actually reduced the cost of treatment per patient. However, it is clear that technology has led to some major changes in the provision of healthcare. The following are some of the major changes that technology has had on healthcare:

Increase in the Success Rate of Medical Procedures

When it comes to the preventing death, even cost is not important. Technology has helped to reduce the rate of death caused by several illnesses and complications and is therefore regarded as a change in the era of healthcare. With the increase in use of technology, several new medical procedures have been invented that not only save lives but also provide an efficient and effective mode of treatment. The advantages of using technology are limitless and constant inventions are changing the world of healthcare (Tyrrell, ...