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The impact of technological advancements on health spending: A literature review

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  • Alberto Marino
  • Luca Lorenzoni

Abstract

The measurement of the impact of technology as a driver of health care expenditure is complex since technological effects are closely interlinked with other determinants such as income and the composition and health status of a population. Furthermore, the impact of the supply of advances in technology on health expenditure cannot be considered in isolation from demand and the policy context and the broader institutional context governing the adoption of new technologies. Hence, it is the interaction of supply and demand factors and the context that determine the ultimate level of technology use.There are also important quality changes that come with technological progress that also have monetary costs and benefits attached. Modelling quality improvements, both in terms of benefits within the health system and outside (e.g. its impact on life expectancy, ageing populations, productivity and GDP), is a challenging task, and no macroeconomic models to date have tried to capture them.This paper presents a comprehensive literature review of the impact of technological advances on health expenditure growth, the ‘cost’ side of the equation.

Suggested Citation

  • Alberto Marino & Luca Lorenzoni, 2019. "The impact of technological advancements on health spending: A literature review," OECD Health Working Papers 113, OECD Publishing.
    • Handle: RePEc:oec:elsaad:113-en
    DOI: 10.1787/fa3bab05-en
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    Cited by:

    1. Andres R. Schneeberger & Sarah Werthmueller & Santiago Barco & Sabina C. Heuss, 2023. "Patients' preference regarding inpatient versus outpatient setting ‐ A systematic review," International Journal of Health Planning and Management, Wiley Blackwell, vol. 38(5), pages 1409-1419, September.
    2. Nor Aziah Abd Kadir & Nur Fakhzan Marwan & Adibah Hussin & Rosmah Nizam & Fazreena Mansor, 2022. "Long Run Analysis between Climate Change, Socio-Economic Factors and Technology on Health Expenditure in Malaysia," International Journal of Human Resource Studies, Macrothink Institute, vol. 12(2), pages 6589-6589, December.

    More about this item

    JEL classification:

    • H51 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Health
    • I11 - Health, Education, and Welfare - - Health - - - Analysis of Health Care Markets
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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