“In view of the conventional wisdom about the role of medical technology in driving up costs, it is surprising that the cost of medical devices during this period has risen little as a share of total national health expenditures and, since 1992, has remained essentially constant as a percent of national health expenditures.” That is the conclusion of a study released by AdvaMed.

Prices for medical technology have risen slowly for the last two decades – at a rate less than half that of overall prices in the economy and less than one-quarter the rate of prices for other medical goods and services, according to the study. For the 10-year period ending in 2009, medical device prices have increased at an average annual rate of 1%, compared with the CPI increase of 2.6%, the Medical Care CPI increase of 4.1%, and the Medical Care Services CPI increase of 4.5%. Device and diagnostic prices have increased at an average annual rate of 1%, compared with the consumer price index (CPI) increase of 2.8%, the medical care CPI increase of 4.7%, and the medical care services CPI increase of 5%.

The research, conducted by Roland “Guy” King, a leading health actuary, and Gerald Donahoe, an expert on economic accounting, also found that spending on advanced medical technology over the past 21 years has risen only slightly as percentage of overall national health spending, demonstrating remarkable consistency and value during a period of tremendous medical progress. Medical device spending has gone from just 5.3% of national health expenditures (NHE) in 1989 to 5.9% in 2009. The percentage has remained virtually constant since 1992 at about 6% of NHE.

For more, visit http://blog.medicaldesign.com/pespectives and read “The high cost of healthcare: don’t blame medical devices.” — Sherrie Conroy, Director of Content