Technological advances in the field of medicine have long been associated with increasing costs to an already swollen system of healthcare. Often attached to negative connotations, technological innovation within medicine is frequently met with the opposition of individuals seeking to avoid subsequent cost-increases and of policy makers aspiring to lessen costs of expansive healthcare components nationwide. But are innovative advances in the medical field really to blame? Are technological improvements actually endangering economic stability? Many industry experts believe not.
Within the medical field, technological cost is often used as a blanket term to describe various inputs and components of innovative advancement. Many industry experts and medical professionals believe that technology and its associated rising costs in the field of medicine can be broken down into three main components: Intensity of Use, Introduction of New or Modified Technology, and Expanding Applications. However the inefficiencies occurring throughout these main components have in fact less to do with costs of advancing technology but more to do with distorted incentives, asymmetrical information and various external pressures. In fact, a significant portion of healthcare expenses can be aligned with external pressures and incentives that have few connections to technological costs at all. What is apparent is the necessity of medical innovations to reduce long term healthcare costs and to improve healthcare quality.
Within the medical field, social benefits gained by technological advancements far outweigh social costs. In this way, costs associated with medical innovations can be considered sound expenditures as improvements in technology aim to stimulate economic growth and improve productivity. In addition to a progressive nature, technological advances in the field of medicine often prove to reduce long-run costs. For example, innovations in x-ray imagery allow physicians to accurately determine whether a surgery may be deemed non-invasive. In this situation, a physician can avoid unnecessary surgical costs. Also, ‘incremental improvements’ made to existing technology help to increase medical service efficiency while remaining significantly cost-efficient by expanding upon preceding technological blueprints.









