Unbiased Analysis of Today's Healthcare Issues

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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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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The Innovation and Value Initiative (IVI) has launched

I’m excited to announce that the Innovation and Value Initiative (IVI) has just launched.  I will be serving as the Director of Research.  Below, I have reposted the IVI press release so you can lear more about the initiative. Precision Health Economics today launched the Innovation and Value Initiative (IVI), a multi-stakeholder scientific initiative to […]

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How do we measure the value of and pay for biomedical innovation?

Dana Goldman, Samuel Nussbaum, and Mark Linthicum have an interesting post on the Health Affairs blog about innovation, value measurement and pricing.  The article mentions the new Innovation and Value Initiative, where I serve as the Director of Research.  An excerpt is below. New pricing mechanisms are needed to effectively link prices to value; we […]

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CRISPR as a diagnostic?

Innovation can occur various ways.  Consider the rapidly evolving area of clustered regularly interspaced short palindromic repeats (CRISPR) Zika, meet CRISPR. …researchers have incorporated the gene-editing system CRISPR into a diagnostic test — one that can differentiate between two strains of the Zika virus. CRISPR has been hailed for its potential to fix mutations that cause disease. […]

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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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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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Why doesn’t evidence based medicine spread faster?

One reason is that physicians may value their own experiences (i.e., learning by doing) over the accumulated experience across many providers.  A paper by Berndt et al. (2015) look at physician prescribing patterns of antipsychotic.  They note that some physicians concentrate in prescribing specific antipsychotics and others concentrate on prescribing other ones. The authors claim the […]

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