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Archive for the 'Innovation' Category

How one project will change the way value is measured in healthcare

That is the title of a recent article in Managed Healthcare Executive on the Innovation and Value Initiative’s new Open-Source Value Project.  The magazine interviewed Mark Linthicum, IVI’s Director of Scientific Communication.  An excerpt is below: Linthicum: Many healthcare stakeholders are now being asked to make decisions based on value, but few are also given […]

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Webinars for IVI’s Open-Source Value Project

On November 8th, the Innovation and Value Initiative (IVI) launched a new effort to help redefine the way we measure value in health care: the Open-Source Value Project (OSVP). A first-of-its-kind effort that engages all health care stakeholders in an open process to advance the way we measure value in health care treatments and services, […]

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How reimbursement affects innovation

Below are some excerpts from seminal papers examining how changes in reimbursement or market size affect pharmaceutical innovation. Acemoglu and Lin (2004): Our estimates suggest that a 1 percent increase in the size of the potential market for a drug category leads to a 6 percent increase in the total number of new drugs entering the […]

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Understanding The Value Of Innovations In Medicine

Health Affairs is holding an interesting event in September on “Understanding The Value Of Innovations In Medicine” at the National Press Club. They describe the event as follows: Value” is at the center of discussions of payment and policy, but value has different definitions and meanings reflecting the diversity of stakeholders in the healthcare system. […]

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Innovation in small markets

The introduction of new treatment technologies typically occurs where there is a large market.  A lot of innovations are developed to treat disease that affect a large number of people in the developed world because the financial returns are large.  It is less likely to observe innovation in the treatment of rare diseases or diseases […]

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Tackling Antimicrobial Resistance

O’Neill Commission has identified a number of recommendations to tackling drug-resistant infections. Seth Seabury and Neeraj Sood have their own thoughts on how to incentivize the development of antibiotics to fight antimicrobial resistance (AMR) which they describe in an interesting article in the Health Affairs blog. They write: The US patent system incentivizes innovation by […]

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Why aren’t there more cures?

The answer is money, reimbursement, and incentives.  Treating chronic disease gives innovators payoff over a long period of time.  If innovators created a cure for that disease, they could of course charge the net present value of this same stream of payments.  Health plans, patients and the media, however, are often shocked at the high sticker […]

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Supply side health reform

Alex Tabarrok of Marginal Revolution notes that designing a health care system that focuses on benefits to consumers and is important, but one should not ignore how any health care system design affects the supply of health care, in particular incentives to create innovative goods and services. By greater spending on medical research, I mean not […]

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Quotation of the Day: Innovation

“Creativity is thinking up new things. Innovation is doing new things.” Thomas Leavitt.

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Does tort reform harm innovation?

The answer appears to be yes according to an NBER working paper by Galasso and Luo: We find that, on average, laws that limit the liability exposure of healthcare providers are associated with a significant reduction in medical device patenting and that the effect is predominantly driven by innovators located in the states passing the […]

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