ENP Newswire -
Release date- 17062014 - AdvaMed has released a new study stating that medical device spending is slow relative to other healthcare costs.
From 1989 to 2011, the cost of medical technology has increased at roughly one-third of the rate of the broader economy and one-fifth the rate of other healthcare goods and services. In 2011, the cost of medical technology increased 0.7%-roughly one fifth the rate of overall inflation.
Although the amount of money spent on medical devices (as a share of national healthcare expenditures) has wavered since 1992, it has hovered around 6%. Nearly all of the increase in device spending relative to overall healthcare costs occurred between 1989 and 1992, the study notes.
Over the years, AdvaMed has issued a series of such studies, which have consistently found that medical device spending has been slow.
That was certainly the point made by
Now, however, healthcare spending in general is becoming increasingly scrutinized and some economists argue that medical device technology is often wasteful, and is a significant driver of overall healthcare costs.
In any case, the costs of medical devices is often not public information and a number of device companies requires hospitals to agree to 'gag clauses' that prevent them from comparing the prices of medical devices with other healthcare institutions.
Another recent study from CMS supports the overall argument of the AdvaMed study, however, noting that, in 2012, money spent on durable medical equipment (
The AdvaMed study was written by Roland 'Guy' King, former chief actuary at the
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