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Economic barriers to implementation of innovations in health care: Is the long run-short run efficiency discrepancy a paradox?

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  • Adang, Eddy M.M.
  • Wensing, Michel

Abstract

Favourable cost-effectiveness of innovative technologies is more and more a necessary condition for implementation in clinical practice. But proven cost-effectiveness itself does not guarantee successful implementation. The reason for this is a potential discrepancy between long run efficiency, on which cost-effectiveness is based, and short run efficiency. Long run and short run efficiency is dependent upon economies of scale. This paper addresses the potential discrepancy between long run and short run efficiency of innovative technologies in healthcare, explores diseconomies of scale in Dutch hospitals and suggests what strategies might help to overcome hurdles to implement innovations due to that discrepancy.

Suggested Citation

  • Adang, Eddy M.M. & Wensing, Michel, 2008. "Economic barriers to implementation of innovations in health care: Is the long run-short run efficiency discrepancy a paradox?," Health Policy, Elsevier, vol. 88(2-3), pages 236-242, December.
    • Handle: RePEc:eee:hepoli:v:88:y:2008:i:2-3:p:236-242
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    References listed on IDEAS

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    1. Drummond, Michael F. & Sculpher, Mark J. & Torrance, George W. & O'Brien, Bernie J. & Stoddart, Greg L., 2005. "Methods for the Economic Evaluation of Health Care Programmes," OUP Catalogue, Oxford University Press, edition 3, number 9780198529453.
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    6. Eddy Adang, 2008. "Economic evaluation of innovative technologies in health care should include a short-run perspective," The European Journal of Health Economics, Springer;Deutsche Gesellschaft für Gesundheitsökonomie (DGGÖ), vol. 9(4), pages 381-384, November.
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    1. Gijs Van de Wetering & Willem H. Woertman & Eddy M. M. Adang, 2012. "A model to correct for short‐run inefficiencies in economic evaluations in healthcare," Health Economics, John Wiley & Sons, Ltd., vol. 21(3), pages 270-281, March.
    2. Mallikarjun, Sreekanth & Lewis, Herbert F. & Sexton, Thomas R., 2014. "Operational performance of U.S. public rail transit and implications for public policy," Socio-Economic Planning Sciences, Elsevier, vol. 48(1), pages 74-88.
    3. Lettieri, Emanuele & Masella, Cristina, 2009. "Priority setting for technology adoption at a hospital level: Relevant issues from the literature," Health Policy, Elsevier, vol. 90(1), pages 81-88, April.
    4. Stuart J. Wright & Mike Paulden & Katherine Payne, 2020. "Implementing Interventions with Varying Marginal Cost-Effectiveness: An Application in Precision Medicine," Medical Decision Making, , vol. 40(7), pages 924-938, October.

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