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Investigating Health Technology Diffusion in New Zealand – How Does it Spread and Who Stands to Gain?




Previous Treasury research has identified “price and coverage” effects as playing a key role in the growth of historical health expenditure. This incorporates factors such as technological change and input prices including wages. Bryant et. al. (2004) found that between 1950-51 and 2001-02, growth in price and coverage effects was the main source of long run growth in government health expenditure and has accounted for 3-4% growth per year since the early 1990s. This paper explores how a new health technology diffuses across District Health Boards (DHBs), the price and coverage effects, and whether access is evenly spread across the population i.e. who benefits from a new device or procedure. In particular, it highlights: • the variation in clinical practice between different DHBs • the degree to which the adoption of a particular technology in one DHB impacts on neighbouring DHBs: ? a “domino” effect occurs when the adoption of a technology in one DHB leads to other DHBs following suit ? the adoption of a technology in one DHB leads to increased inter-district flows between DHBs. • differences in access between geographical regions and also ethnic groups The paper takes the example of a new procedure used in coronary care known as ‘stenting’ and examines its adoption across the different DHBs. Data used pertains to different heart procedures adopted across New Zealand over a particular time frame (1995-2004). It comprises patient details plus information relating to the DHB in which the procedure was carried out and also the patient’s domicile DHB.

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  • Louise Allsopp, 2006. "Investigating Health Technology Diffusion in New Zealand – How Does it Spread and Who Stands to Gain?," Treasury Working Paper Series 06/05, New Zealand Treasury.
  • Handle: RePEc:nzt:nztwps:06/05

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    References listed on IDEAS

    1. Joseph P. Newhouse, 1992. "Medical Care Costs: How Much Welfare Loss?," Journal of Economic Perspectives, American Economic Association, vol. 6(3), pages 3-21, Summer.
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    More about this item


    technology diffusion; coronary procedures; health expenditure;

    JEL classification:

    • 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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