Economic implications of health care policy for medical technology

Abstract

The relationship between technology and medical costs in the context of US health-care policy is addressed. It is argued that current policy, particularly in the area of containment, is not directed toward general welfare, of which health is a critical component. The basic cause of this deficiency in policy is that there is no overall guiding principle of economic justice to which policy decisions or initiatives can be attributed. Moreover, the health-care system functions in a market characterized by competitive imperfections, and, despite the constrictions of current cost-containment measures, open-ended financing. One of the consequences of the economic orientation of health policy and actions is that the decisions of health-care providers and administrators reflect the economic rationality implicit in the orientation. It is concluded that in the absence of a redirection of policy toward publicly oriented goals, there is no compelling philosophical reason to expect that those involved in the development, diffusion, and use of technology will act against what they perceive to be their own best economic interests. >