Abstract

Knowledge about the cost-effectiveness of innovative technologies or new guidelines in health care is more and more a necessary condition for implementation in common practice. However, there are situations where implementation of a new technology that is found more effective and cost effective and is strongly advocated by the medical profession stagnates. The reason for this is the discrepancy between long-run efficiency, on which cost effectiveness is based, and short-run efficiency. This paper addresses the potential paradox between long-run and short-run efficiency in health care and explores possibilities to overcome hurdles to implementation due to that paradox.

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