Value_Spending_08

Value_Spending_08 - The Value of Medical Spending PAM 435...

Info iconThis preview shows pages 1–11. Sign up to view the full content.

View Full Document Right Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: The Value of Medical Spending PAM 435 February 5, 2008 Review of Thursday (1/31) Lecture In order to assess whether new medical treatments that increase the cost of medical care are worth it, we need to translate health improvements into financial terms. Economists estimate that the value of a life year ranges from $75,000 to $150,000, and many use a $100,000 figure. Quality adjusted life years (QALYs) are a way to compare the value of living for 1 year with a particular illness to the value of living for 1 year in perfect health. Key Question “Would you rather have 1950’s medical care at 1950’s medical prices, or today’s medical care at today’s medical prices?” Today’s Objectives Evaluate the benefits and costs of medical technologies using case studies of 4 different diseases/medical conditions: - low-birth-weight babies- depression- cardiovascular disease- colon cancer Discuss who should decide whether a medical technology is available and how much it should cost An Alternative Perspective on Health Care Spending Low-Birth-Weight Babies • Medical care for premature infants – 1950s: Experimentation with incubators and warming • (cost: close to $0) – Today: Neonatal intensive care units, artificial surfactant (to keep lungs open), ventilators, feeding tubes, drugs to delay labor, drugs to speed up infant development • (cost $70,000) Medical Care is the Catalyst Behind More Recent Improvements in Infant Survival Rates Source: Cutler, 2005, Technical Appendix to Your Money or Your Life . Birth Weight Share of Births Survival Rate (grams) 1950 1998 1950 1998 < 1000 0.5% 0.7% 12.8% 60.3% 1,000-1,499 0.6% 0.7% 44.9% 95.7% 1,500-1,999 1.4% 1.5% 78.9% 98.1% 2,000-2,499 4.9% 4.6% 95.0% 99.3% 2,500-2,999 18.1% 16.5% 98.7% 99.8% 3,000-3,499 37.7% 37.0% 99.3% 99.9% 3,500-3,999 27.1% 37.0% 99.4% 99.9% 4,000-4,499 7.7% 8.5% 99.2% 99.9% 4,500+ 2.1% 1.5% 98.6% 99.9% Total/average 100.0% 100.0% 97.9% 99.5% Source: Cutler and Meara, 2004. U.S. Infant Mortality Rate Continued to Drop Between 1950 and 2000 Cutler’s Calculation Average low-birth-weight baby today lives about 15 years longer than the average low-birth-weight baby in 1950....
View Full Document

This note was uploaded on 09/12/2008 for the course PAM 4350 taught by Professor Nicholson during the Spring '08 term at Cornell.

Page1 / 29

Value_Spending_08 - The Value of Medical Spending PAM 435...

This preview shows document pages 1 - 11. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online