Unbiased Analysis of Today's Healthcare Issues

Archive for the 'Innovation' Category

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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The Price of Everything and the Value of Nothing

That is the title of an article in Eye for Pharma which interviews me about measuring value in health care.  The article highlights a number of issues related to value measurement, health policy and the healthcare marketplace. The article also describes the launch of the Innovation and Value Initiative, a broad coalition of providers, payers, patient advocates, […]

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Static and Dynamic Effects of Vaccine Policy on R&D

How does health policy and pricing affect investment in innovation? This is the research question investigated in Amy Finkelstein’s 2004 QJE paper on Static and Dynamic Effects of Health Policy. She examines three policy changes: 1991 CDC recommendation that all infants be vaccinated against Hepatitis B 1993 decision for Medicare to cover (without any copayments […]

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How we should pay for cures, according to economics

I have an article up at the Washington Post‘s In Theory blog titled How we should pay for cures, according to economics. Imagine a major medical breakthrough: a cure for Alzheimer’s. Imagine that cure not only would improve the cognitive abilities of the more than 5 million Americans living with Alzheimer’s but also would give these patients […]

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Assessing Healthcare Value: The Need for a Decentralized And Scientific Approach

Tomas Philipson has an interesting post in Forbes describe how value should be incorporated into the U.S. healthcare system but should be done in way suited for the American market. The American healthcare system is at a crossroads. Shifting to a system that reimburses based on value, rather than volume, of care requires changes in how we […]

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How does market structure affect technology adoption?

The answer: more competition leads to more technology adoption.  This is the finding from a study by Karaca-Mandic et al. (2016).  They use data from 100% Medicare claim in 2003 and 2004 as well as linked information on hospitals [American Hospital Association (AHA) Annual Survey] and physicians [American Medical Association (AMA) Masterfile]. Competition is measured two […]

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Value Framework Guidelines

In recent years, a number of organizations have developed value frameworks to assess new treatments.  These organizations include the Institute for Clinical and Economic Review (ICER), Memorial Sloan Kettering Memorial Cancer Center (Drug Abacus), American Society for Clinical Oncologists (ASCO),  National Comprehensive Cancer Network (NCCN), European Society of Medical Oncology (Magnitude of Clinical Benefit Scale). […]

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Innovation: The good and the bad

Our data, for example, show that a third of Medicare’s spending in physician or outpatient settings in 2012 reflects technology that did not exist a decade earlier…When it comes to technology development, the central challenge is to encourage high-value innovation while discouraging innovation that drives up costs without much improving health. Bagley, Chandra and Frakt. Correcting Signals for […]

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FDA to Consider Patient Preferences

Typically, the FDA evaluates drugs and devices based on whether they are safe and effective. Patient treatment preferences play little to no role in whether a drug or device is approved by the FDA. However, times are a changing. On Wednesday, the FDA released draft guidance whereby they recommend the inclusion of patient preference information […]

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