Technology and Overall health Policy: Quick Technology Konzentrationsausgleich and Coverage Options in Korea
Soonman Kwon, Ph. D.
Seoul National School, Korea
My spouse and i. Introduction
Physicians in Korea depend greatly on high-technology medical care, adding to the health care cost inflation. This paper aims to examine the current position of medical technology konzentrationsausgleich, its causes and effects, and insurance plan options to rationalize the usage of medical technology and consist of related costs. It testimonials both assumptive issues linked to medical technology in general and the policy problems of Korea along with a few OECD countries. Korea has experienced an extremely rapid diffusion of great medical equipment, brand-name first drugs and medical procedures due to the financial bonus of companies associated with the fee-for-service system, prominence of private for-profit providers of health care, plus the lack of rules on the ownership of medical technology. Since the rapid durchmischung of medical technology is driven by providers instead of consumers, general public policy should certainly focus on health care providers who may play a role in the patients' utilization of medical technology and related spending.
II. Healthcare Technology and Diffusion
Medical technology features played an increasingly important role in health care. Technical developments in drugs, physical capital or high-tech gadgets (MRI, COMPUTERTOMOGRAFIE, ESWL, etc . ), and new types of procedures such as avoid surgery or perhaps catheterization for AMI people have resulted in the speedy increase in the utilization of those services. New high end medical devices, brand-name medications and medical procedures contribute to better health outcomes and increased quality of life. Concurrently, heavy reliability on high-technology medical care brings about the increase inside the intensity of care for specific episode of illness or perhaps for a offered treatment day time.
Technological advancement is always regarded as good and beneficial to the industry and society. Nevertheless , technological advancement in medical care is not necessarily welcomed for its higher cost. Technological innovation in medical care is much more in product creativity than in process innovation. Procedure innovation can save the cost of medical care by permitting the same method to be performed in a cheaper way. As opposed to the cost-reducing nature of process creativity, product innovation in medical devices, prescription drugs, and surgical procedures is almost usually cost-increasing.
Due to technology-driven pressure on healthcare expenditure, frame of mind of health policy producers toward technology is ambivalent. The optimal make use of medical technology requires get the most out of the impact on human population health and concurrently the minimization of its expense of increased utilization. Dangerous the technology adoption of health care providers, rules based on the cost-effectiveness principle, fees and payment systems for high end medical care, and insurance coverage and cost-sharing to get patients most affect the logical use of medical technology and health care costs.
Korea provides experienced a really rapid diffusion of medical technology (Figure 1). Via 1993 to 2002, the number of CT readers has increased via 12. 2 to 31. 9 every million folks, MRI via 1 . 8 to several. 9, and ESWL coming from 1 to six. In terms of the technology re-homing of CT scanners and ESWL, Korea is the innovator after The japanese in the world. The japanese has the greatest number of CTs, MRIs and ESWLs per capita in the world, whereas Canada, France and UK are incredibly slow adopters of high end medical gadgets (Table you, Table 2, Table 3).
Korea and The japanese also count heavily upon pharmaceuticals, as well as the share of pharmaceutical costs in total medical expenditure can be higher than that in other countries (Table 4). Nevertheless pharmaceutical spending accounts for an extremely low talk about of total health spending in the US as well as for a high reveal in England, different from the pattern in the...
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Source: National Statistical Workplace (2004); Ministry of Into the Welfare (2004).
Source: National Statistical Business office (2004); Ministry of Health and Welfare (2004).