Technology and the High Cost of Health Care.

The cost of health care in the united States has increased almost exponentially during the last few years. What Is fueling these cost increases? There are many factors driving up the cost of health care In the united States. However, experts In health care and health policy point to the development and diffusion of medical technology as the main cause for this increase.

But before entering a debate, there are a few things to make sure people understand: What is defined as medical technology? What factors affect the growth of the research and development of medical technology?How are these technological changes affecting health care spending and costs? We live In a time where medical technology is seriously contributing to people living longer and healthier lives. Generally speaking, "medical technology" is used to refer to the procedures, equipment, and processes by which medical care is delivered. It includes the development of new medical and surgical procedures, drugs, medical devices and systems. Developments In medical technology have significantly revolutionized the health care Industry.

Today, there Is very little In the field of medicine that does not SE some type of medical technology and that has not been affected by new technology ("How Changes in Medical Technology Affect Health Care Cost": 2007). Over the past decade, scientists have made significant advancements and innovations In developing medical technology. Innovations such as magnetic resonance Imaging (MR.), new highly effective drugs, improvements In surgical procedures such as organ transplantation, coronary artery bypass surgery, Just to name a few, have completely transform our modern way of life and the standards of health care.

The research and development of medical technology have given us enormous outcomes and benefits. It is a source of hope for the prevention, effective treatment, and cure of diseases. Unfortunately, Just like any new product, the cost of developing these new technologies and treatments Is extremely high. Plus, unlike other technology, medical technology generally does not decrease In price over time (Fuchs & Gerber: 2003). To give an idea of how the costs have risen, since 1970, the united States health care spending has grown at an average annual rate of 9.

%, or about 2. 5 percentage points faster than the economy as measured by the nominal gross domestic product GAP). Annual spending on health care Increased from $75 billion In 1970 to $2. 0 trillion In 2005, and Is estimated to reach $4 trillion In 2015. As a share of the economy, health care has more than doubled over the past 35 years, rising from 7. 2% of GAP in 1970 to 16.

0% of GAP In 2005, and projected to be of GAP n 2015. The annual rate of inflation of expenditure on health care 2002-2004 was about 8. %, which far exceeded the rate of inflation for all other items in the United States economy ("How Changes In Medical Technology Affect Health Care Cost": 2007). Roth in health care costs. As new and more effective medical procedures, drugs, and technologies are introduced into the market, the demand grows and more money is invested in them.

The money is invested by the government, manufacturers, private investors, and in a minor scale by the health insurers.All the health care benefits and investments are the motivation for technological research and development to continue and accelerate in order to generate more profit (Fuchs & Gerber: 2003). One big part of medical technology which increases the costs of health care is retainer prescription drugs. Prescription drugs represent the fastest growing health care expense in the United States, and it is projected to grow at 20 to 30 percent each year over the next years.

Everyday, there are many newer, better and more expensive drugs on the market. According to Edward M.Isoclinic, president of Merck Research Laboratories, a unit of Merck & Co. , the relationship each government's health-care system has with pharmaceutical companies is one of the world's largest pharmaceutical concerns. Here in the United States, the government's health care yester often gives pharmaceutical companies the impetus to discover and design new drugs.

These new products tend to have higher prices due to the demand for them. In addition, with so much television advertising, many consumers ask their doctors for expensive, brand name drugs when there may actually be a generic drug that works Just as well (Evans: 2001).The more and more we use and trust new medical technology, the more we have to be conscious of how these technological changes are affecting health care spending and costs. We need to differentiate if the benefits we are achieving really overrule the cost.

For example, last year Massachusetts hospitals were seeking to nearly double the number of advanced diagnostic body-scanning machines in the state. This was with the purpose of making the latest diagnostic technology for cancer and heart disease more widely available to doctors and patients.These machines allow doctors to estimate the spread of cancer or the extent of cardiac disease without surgery or invasive procedures. They cost up to three million dollars each to install. Health insurance companies predicted that the hospitals were going to be pressured in order to recover their investments, forcing their doctors to refer more patients in order to pay for these machines; therefore, raising the costs of health care. Today, thanks to insurance companies and Medicare, it is easier for hospitals to pay for these machines and bring us the best health care technology.

These organizations pay for most of the cost of the machines. The demand for them is so great, that these machines even have become standard for health care; making it harder to hold these new technologies back. But in my opinion, the benefits win over the cost. These canines are used for 23 diagnostic cancer tests, can prevent many heart surgeries and help doctors make the correct decision when they are trying to save lives (Rowland: 2005).

The benefits new medical technologies have given us are enormous.The advances in rather than making economic profit. Their economic cost is high, but I think that is not the reason why they are made or used. In his book, Volt gives a brief explanation of what I think is the stand that society has towards medical technology today.

According to Volt:"Modern medical technologies have generated new possibilities and new hopes. Instead of accepting sickness and death as the inevitable product of fate or Gods will, we increasingly expect that cures will be found, and that they will be made available when we need them.But along with rising expectations come rising costs...

As a result, medical advances and their associated costs have the potential to expand without a limit, for as long as people are subjected to sickness and death, there will be no lack of demand for new medical interventions. Moreover, unlike other goods and services, expenditures on medical care are not usually weighted against other possible expenditures"(Volt: 2006, p. 11). Everyday, more and more people are relying on the health care system as new technologies and treatments become available.

Because of their effectiveness, the demands for medical technological changes have increased, and so has the cost of health care. To conclude, there are many factors driving up the cost of health care in the United States; however, medical technology is the main cause for this increase. Thru the systems, medical technology have significantly revolutionized the health care industry. Unfortunately, Just like any new product, the cost of developing these new cosmologies and treatments is extremely high and has tremendously increased during the last decades.

As more new and more effective medical procedures, drugs, money is invested in them. Serving all as motivation for technological research and development to continue and accelerate. The more and more we use and trust new medical technology, the more we have to be conscious of how these technological changes are affecting health care spending and costs. The demand for them is so great, that sophisticated medical technologies even have become standard for health care; making it harder to hold these new technologies back. The benefits new medical technologies have given us are enormous, even bigger than their cost.

The advances in medical technology have been based in the principle of maintaining and saving lives, rather than making economic profit. Because of their effectiveness, the health care. In some cases sophisticated medical technologies may be the difference between life and death. In my opinion life is priceless, and when it comes to saving your life or the one of someone close to you, money becomes the last thing to think about.